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FINANCIAL DEPARTMENT

All legitimate questions from Outlook readers about investment securities will be answered either by personal letter or in these pages. The Outlook cannot, of course, undertake to guarantee against loss resulting from any specific investment. Therefore it will not advise the purchase of any specific security. But it will give to inquirers facts of record or information resulting from expert investigation, leaving the responsibility for final decision to the investor. And it will admit to its pages only those financial advertisements which after thorough expert scrutiny are believed to be worthy of confidence. All letters of inquiry regarding investment securities should be addressed to

THE OUTLOOK FINANCIAL DEPARTMENT, 381 Fourth Avenue, New York

This Is Our Work

F

ULFILLING the vision of its founder, this institution
serves and will continue to serve its double function in
providing safe investments for the funds of the public and
the upbuilding of this nation's permanent prosperity.

Promoting thrift, encouraging systematic accumulations, pro-
viding for such accumulations a form of investment unimpeach-
ably conservative; and giving to each investor, large or small,
a real, vital, and profitable part in the material improvement
of the nation's great cities: This is our work.

Safe 6% Bonds

The first mortgage 6% bonds we offer are safe investments.
Safety must be your first consideration-especially so in these
times of war. The denominations of the bonds are $100,
$500 and $1,000.

Write today for our booklet, "Safety & 6%," describing how
the Straus Plan safeguards these bonds, and for our current
Investment List. Ask for

Circular No. I-805.

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SAVING FOR THE FOURTH LIBERTY LOAN

HOW WE CAN REMOVE AN OBSTACLE TO
VICTORY BY CURTAILING LUXURIES

BY J. LAURENCE LAUGHLIN

Mr. Laughlin is one of the foremost living political economists and has an international reputation as an authority in finance and political science. He was formerly Professor of Political Economy at Harvard from 1883 to 1887, at Cornell from 1890 to 1892, and at Chicago University from 1892 to 1916.— THE EDITORS.

O

NE of the first lessons from the war is that the enormous expenses for maintaining our rights cannot be met by multiplying the forms of money or by an undue expansion of credit. Money and credit are only the mechanism by which fundamental transfers of goods are carried through. To carry on the war the primary need is for goods produced by essential industries to meet the needs of our Army and Navy, for goods needed by the great civilian population for food and necessary consumption in a simple method of living. When our Government borrows, it must have transferred to it, not empty forms of money and credit based on artificial assets and claims that cannot be collected, but actual purchasing power over goods. Moreover, there must go with this purchasing power over goods such industrial conditions, such an attitude both of employers and employees, that production of goods may go on, not only at the old standard of efficiency, but at a higher rate of turnover than ever before. Since millions have gone to the front, those must work who have never before added to production.

We can carry on the war only out of the productive power of our people. The more we can produce, the more we can divert to the purposes of war. What is the total fund on which we can draw? It is not the capital of to-day, which was the outcome of the saving of yesterday. It is the total product of the country by which it exceeds the main necessaries of life, and upon which surplus new incentives to save must be directed. The total volume of production in the United States in excess of the necessaries of life is almost incredibly large. There have entered into this result the accumulated forces of invention and progress for centuries, the combined efficiency of narvelous forms of new machinery, the development of new power such as gas and electricity, the rise of a new technique replacing hand labor, the gains of science and discovery. All these aids to the efforts of human labor have been applied to unequaled resources in coal, ores, and materials. The results have shown themselves in an increase of our National wealth from $43,000,000,000 in 1880 to $187,000,000,000 in 1912. We hardly realize what an enor mous force of labor, capital, managerial skill, and invention is to-day devoted to making articles which supply wants not essential to health and actual existencewants that could go unsatisfied without loss of physical energy. For instance, think of the millions accumulated merely in supplying feather-bone for stiffening ladies' collars or in providing articles of vanity. Nearly all this vast surplus of product over and above the necessaries of life-by some gradual process of adjustment to new industries could as a last resource be taken by the Government for war purposes. It is not likely that it will all be taken, but it could be, if needed to win the war. We have already taken a considerable step in this direction, as labor and capital have been directed into the making of shells, guns,

ships, and munitions of all kinds; but as yet we have trenched very little on our great surplus.

How does the Government get control of a part of this great surplus of wealth, and how is the country able to give it? There are only two ways by which the Government can get it: (1) by taxation, or (2) by loans. By the former the State takes outright, and never repays; by the latter the State borrows the purchasing power over goods and agrees to repay in the future. In either case, the outside limit to our power to pay taxes or to provide loans is the surplus of our production above necessaries. If the Government gets it, the former possessors of it have to forego their consumption over goods to that extent. It is obvious that the same wealth cannot be consumed in two ways at the same time. Hence the possibility of floating the Fourth Liberty Loan depends on the willingness of our people to restrict their consumption of goods and turn over the equivalent to the Treasury through subscriptions to National loans. First of all, they must cease buying luxuries or articles not absolutely necessary to daily comfort. But that is only another name for saving. Saving means foregoing of personal consumption for a future gain. Thus we see that loans on the enormous scale demanded by the war cannot be got from capital saved on antebellum conditions, but only by a newly stimulated, patriotic willingness to apply a restriction over consumption to the vast surplus of production over necessaries. That is, great new loans can come only from new saving applied to this enormous surplus. In a word, the Government can

ESTABLISHED 1865 |||||||||||||

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ESTABLISHED 1865

8%

From Safe Investment for One, Two or Three Years

Denominations of $100, $500 and $1,000 Abundant security and ample future earnings assured by longtime contracts.

Company's product is of ut most importance in both peace and war times.

Ownership one of the strongest in the West.

Valuable conversion privilege already made, assuring prompt payment at maturity.

Write for Circular No. 1012 Z

Peabody, Houghteling & Co.

(ESTABLISHED 1865)

10 South La Salle Street Chicago

ESTABLISHED 1865

(B204)

NOT ONE DOLLAR LOST

ON A

ESTABLISHED 1865 |||||||||||E

DANFORTH FARM MORTGAGE

IN SIXTY YEARS

No Investor has ever foreclosed a Mortgage, taken a foot of land or lost a dollar on a Danforth Farm Mortgage. For further information regarding our Farm Loans and Bonds write for Booklet and Investors' List No. 58.

get control of a portion of our vast surplus AG-Danforth & Co

of production by saving on the part of each individual, and by use of these savings to buy Liberty Bonds. If every one subscribes in proportion to his power to save, a new stimulus to the formation of capital is applied to an enormous fund of wealth not before saved. Even if the demand for luxuries falls off, labor and capital are not thrown out of employment, for they are transferred to other work; they are released to enter the war industries which provide goods for our Army and Navy. So long as our total productive power is sufficient, not only to provide the fundamental necessities for our civilian population, but also to yield a great remainder out of our vast product to be devoted for a few years to carrying on the war, we can go on easily enough.

Consequently we need not be disturbed by the size of the new loans demanded by the Treasury. Our resources are very great; and we can take up a vast loan out of such of our resources as have been in the past a part of our unnecessary consumption. The ability to subscribe for the new loan, therefore, is a matter of the spirit; it depends on the will to save. Are we at home willing to limit such pleasure as we derive from non-essential consumption in order that we may support the men who are offering their lives? There can be but one answer.

BANKERS WASHINGTON

Founded A.D. 1858 ILLINOIS

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WHY YOU SHOULD INVEST IN STRAUS FARM MORTGAGES Since loans are generally made for improvements to increase efficiency and production, Straus Farm Mortgages are patriotic investments. Security consists of improved productive farms in only best sections of three of richest agricultural States, Ohio, Indiana, and Illinois. Additional assurance of safety in record of nearly sixty years without loss and our legal guarantee of principal and interest at 6%. Write for Special Bulletin and Booklet 0-8. THE STRAUS BROTHERS COMPANY Established 1860.-Capital and Surplus $3,000,000 LIGONIER, INDIANA

ILLINOIS INDIANA

OHIO

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7%

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BONDS ISSUED BY CITIES OF CALIFORNIA

For the Improvement of Streets Write for Circular 0-8 and Prices

OAKLAND STREET IMPROVEMENT BOND CO HALL & JENNISON, Oakland, Calif.

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NURSES TO THE FRONT

Young women desiring to enlist in the United States Student Nurse Reserve, described in The Outlook for July 17, should enroll at the nearest recruiting station established by the Woman's Committee of the Council of National Defense. This Committee has a State Division in every State and a great number of local units. It expects to have at least twelve thousand recruiting stations all over the country. Young women who desire further information or who wish to make any particular inquiries are referred to their State Division of the Woman's Committee.

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BRING OUR WAR PRISONERS TO AMERICA

Now, for the first time, we are taking prisoners in large numbers. What disposition will be made of them? Doubtless they can be used to advantage as laborers behind the lines. But there are many reasons why it would be well to bring them to America. In the first place, we have the returning transports, on which they could be brought with little or no expense. Secondly, their labor in America would be almost as directly tributary to the success of our Army as it would if expended there on the ground.. Thirdly, it would greatly hearten the people of America to know that such and such consignments of prisoners had actually been received over here. The Germans are making much of their exhibits of unending lines of prisoners; they even move them about from one prison to another to let the people see them, throw stones at them, and spit upon them.

It would be a good thing to bring directly home to us the question of how we shall treat our prisoners, assuming, of course, that we have enough of the grace of God to determine the question aright-to treat them kindly and well, regardless of the manner in which prisoners taken from us are treated. We might do a little missionary work among them-teach them the ideals of Christianity and of democracy. Finally, there is another and far greater good that would result it would very materially increase the number of prisoners taken.

It is always difficult to view the other fellow's problems through his eyes; especially is it difficult for the well-nurtured, free American so to view the problems of the oppressed of Austria. The results of overwork and underfeeding, illiteracy, mental stagnation, and fear sink them beneath our ken. Their psychology is that which ours would be a couple of hundred years hence were Germany to win this war. There is just one bright hope that the future holds out to these people, and that is America. The mobilization order cutshort the flood tide of their greatest emigration; almost two per cent of the entire population of the dual Kingdom came over in the three years preceding the war. And they who were so fortunate as to be able to come were but a small fraction of those who were dreaming, planning, and saving to follow.

Many a time I have been told by Austrian immigrants that there is no Austria; there is a Bohemia, a Hungary, a Slavonia, a Croatia, and so on, but no Austria-" No, meester, Austria only a name." And these people of diverse races, forced into unnatural relations, hate one another intensely. The dual Kingdom is bound together, not by ties of cohesion, but by the sum of mutual repulsions. As sojourners in a con

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Bring Our War Prisoners to America (Continued) quered land, they despise the home of today and idealize the home of to-morrow. The immigrant's idealism of America is traditional, but seldom do we trouble to analyze that emotion. It is not a spontaneous growth in the heart of the immigrant, but a sentiment indigenous to the community whence he came. And that emotion is none other than the purest patriotism. Often in the old thoughtless ante-bellum days I was shamed by the intensity of the love that I heard expressed by some raw immigrant for my native land. I recall one, a great brawny Hungarian, who, lacking words to express his emotion, called me out of doors, and, pointing to earth, sky, water, and horizon, with streaming eyes, knelt and reverently kissed the ground. Yet of such as he are the soldiers of Austria. Of course the war has afforded hope to some of these. Some, visualizing a free native land, have already taken strong action to give it expression. That heroic army now battling in a thin line across Siberia reminds us of the vast numbers of prisoners easily taken by Russia in the early days of the war. But the hope of America has been far more general, more bright, more practicable, to the great majority of these people than the hope of a regenerated homeland. Let us therefore bring our prisoners over here, for by so doing we will have many more to bring. ALBERT L. WILLIAMS.

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Major George Haven Putnam, of New York, a veteran of the Civil War, and one of the leaders in crystallizing public opinion in this country in favor of our entry into the great European war, has recently visited England to make some addresses on America's relation to the present struggle. The growing friendly understanding between Great Britain and the United States is marked by, many public tokens, not one of the least interesting of which is the following sonnet written by Canon Rawnsley, a well-known clergyman of the Church of England. In writing to us Major Putnam says Canon Rawnsley was moved to write these lines by hearing a talk by him on Lincoln at a public school where they met. It is not out of place to recall here the fact that one of the most beautiful poems on the death of Lincoln was written by an Englishman, Tom Taylor, of "Punch," and that the best recent onevolume biography of Lincoln was written by an Englishman, Lord Charnwood.

Well I remember on that morn of dread,

When huddled in the street the "darkies" lay Groaning that harm-how heard they could not

say

Had happened to our father and our head,

I saw a rider-come as one who sped

On some unwilling errand of dismay

Hand a despatch, and heard our captain say

Words that seemed nigh to choke him, "Lincoln's dead !".

Fallen our tower of strength, our noblest tree,
Helpless and orphaned when our need was most !
How could we face the world he died to save?
Then with the sound and sorrow of a wave
That breaks with moan of a disconsolate sea
I heard the sobbing of a mighty host.
July 12, 1918.

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H. D. RAWNSLEY.

McCutcheon's

New Fall Catalogue

James McCutcheon® & Co.

Fifth Avenue, New York

Fall and Winter Catalogue 1918-1919

For upwards of sixty years, the name of McCutcheon has been a synonym for all that is best in Linens.

The new Fall Catalogue of "The Linen Store" is full of interest for every lover of "the House Beautiful."

It illustrates also a specially attractive selection of the most desirable Under- and Outer-garments for Ladies, Misses and Children. The collections of both Imported and Americanmade Lingerie are very extensive.

Notwithstanding the present strenuous war-time conditions, we continue to maintain our high standards of merchandise and service in every department. Orders by mail will receive the same scrupulous attention as heretofore.

Send for New Catalogue

A copy of the new Fall Catalogue will be mailed gladly on request.

James McCutcheon & Co.

Fifth Avenue, 34th & 33d Sts., N. Y.

YOUR WANTS

in every line of household, educational, business, or personal service-domestic workers, teachers' nurses, business or professional assistants, etc., etc.-whether you require help or are seeking a situa tion, may be filled through a little announcement in the classified columns of The Outlook. If you have some article to sell or exchange, these columns may prove of real value to you as they have to many others. Send for descriptive circular and order blank AND FILL YOUR WANTS. Address

Department of Classified Advertising,

THE OUTLOOK, 381 Fourth Avenue, New York

Control Your Use of Coal

Whether you heat a small residence, apartment-house, public building or office building, you can make coal go farther if you have positive control of each radiator to be used. Use your steam as carefully as you do gas or electricity.

ADSCO HEATING

Atmospheric System Steam or Vapor Heat

The ADSCO Valve on each radiator with the ADSCO Regulator at the source of supply, insures the use of the minimum of heat, because of positive control. You can open valves 4, 2, 4, and use only that much radiation.

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Besides saving 20% to 30% fuel cost, this simple ADSCO System saves 10% to 15% on pipes, fittings and labor. No noise-no leaky, wasteful valves-no complicated devices.

Write for Bulletin 133-0

It explains the ADSCO System for every type of building. Bulletin 147 tells how a hot water system can be changed over to a better controlled ADSCO System. If you are interested in heating a group of buildings, ask for our bulletin on "Central Station Heating."

Branches:..

AMERICAN DISTRICT STEAM COMPANY General Office and Works: No. Tonawanda, N. Y. Chicago

New York

Seattle

BY THE WAY

Here is a tale, says John Van Ess in "Asia," that exhibits a choice bit of Turkish acumen. "I happened to be on a Turkish river steamer. There were four Europeans in the first saloon. The cook had prepared a roast for our dinner and placed it in the scullery window. Shortly before dinner he came frantically to the pasha (who commanded the three hundred soldiers on board) exclaiming that the roast had been stolen. The pasha, unperturbed,

detailed an aide to hunt out the thief. 'Line up the soldiers on deck,' said he, 'and smell every man's breath. He whose breath does not smell of onions is the thief. Bring him quick!' In an incredibly short time the aide returned, leading a gaunt soldier who meekly admitted his guilt." Presumably all the other soldiers had dined on onion stew, while the guilty man was redolent of choice roast beef.

George Herbert's familiar couplet about "drudgery divine," which has been an inspiration to generations of housekeepers,

"Who sweeps a room as for Thy laws Makes that and th' action fine," has an exemplar in a correspondent of a household magazine who writes:

As a housekeeper and home-maker I have not found anything more restful than a nice, clean home. I do have to work very hard to get it so. I start at one end and sweep and clean and put everything in place. When I get through I am very tired, but when I go through my house and see the rooms all in order and clean, it certainly does give me a restful feeling-it makes me feel I have something to show for being tired.

A New York City department store, Wanamaker's, announces that henceforth it will be open only from ten in the morning till half-past four in the afternoon. In this way it will conserve coal and light, and also help to lessen the congestion of travel on the subways. Shoppers, it is assumed, can easily adapt themselves to these shorter hours, with resulting benefit to the workers who must use the transportation systems during the "rush" periods of the day.

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Even the "stars in the movies sometimes get hurt in doing a strenuous stunt. A despatch says that Geraldine Farrar was seriously injured recently during a movie battle in Wyoming while she was trying to ward off an attack from the villain of the piece. The play's title "The Hell-Cat"-suggests that there is plenty of dangerous action in it.

Why is the ordinary white potato often called the "Irish" potato, when, as is well known, it is a native of America? A pamphlet issued by the National Agricultural Department indicates the answer. It says that the potato is a native of tropical South America, whence it was introduced to Europe by the Spaniards. It was brought to North America from Ireland, it is stated, by a colony of Presbyterian Irish who settled in New Hampshire in 1719. It would thus appear that the potato's roundabout journey to us fairly entitles it to be called Irish.

This must surely be the year of jubilee for the workingman. A New York City labor has this sign in its window: agency CARPENTERS WANTED-$50 WEEKLY China is fast attaining all the marks of Western civilization. A correspondent of the "Railway Age" says that a hold-up on one of the railways recently took place -the first in the history of China. It was accompanied with all the appurtenances of

the traditional Wild West affair of the sort, with some added Celestial improvements. Besides taking all valuables from the passengers and the express car, the bandits removed about a dozen well-to-do passengers from the train to be held for ransom.

A young Kansas farm hand, "who is surely destined to climb high," as "The Writer" satirically remarks, sent a story to the editor of a magazine and accompanied it with this proposition:

If you accept the story, send me $75, and then go to work and advertise that you paid me $5,000 for the manuscript. This the papers will take up as a news item and it will go like wildfire. I will keep all this strictly secret. You do the same. Have a short story of my life, with my photo. Under photo say: The handsome young Kansas author who has made himself famous and received $5,000 for a few strokes of his pen."

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A Washington subscriber writes: "Today's 'Latest News,' a one-sheet news bulletin printed here, contains this item: Chicago.-Alexander Karensky is in the United States, having arrived in Cognito on a recent steamer.' The 'News' editor probably didn't have time to look up Cognito in the atlas; but in any case he needn't have been so precise he might have said, 'at an Atlantic port.'

A letter from a German prisoner in France, published in a book called "The Good Soldier," says: "At the military hospital at Bourges, as also at Bar-le-Duc, we were the object of the most assiduous and eager attention. I know your heart, my dear mamma, I know how good you are. Go then also to relieve the misery of the poor French wounded, and do for them as much good as you can. Yes, do it, I beg you, in recognition of what in France they have done for your son."

In a recent address before the American Library Association, Mr. George H. Locke, chief librarian of the public library of Toronto, Canada, paid a tribute to the camp libraries of the United States. He said that in efficiency of organization he had never seen the work of these libraries equaled. He emphasized a work which the public libraries of all communities may do

that of informing and enlightening the public as to the causes and progress of the war. An intelligent librarian, he said, may also do much to help in co-ordinating the efforts of patriotic committees of every kind in their efforts to aid the men at the front. A good library may well become an organizing center for such work.

Dr. Wilfred T. Grenfell, whose human and civilizing work in Labrador is known internationally, has sent us the following stanza written by his brother and used during the war as an additional stanza to "God Save the King!" It is interesting to compare this with the stanza which is sometimes sung in this country as an additional stanza to "America," which is as follows:

"God save our splendid men,
Bring them safe home again,
God save our men!
Make them victorious,
Patient and chivalrous,
They are so dear to us-
God save our men!"

The verse that Dr. Grenfell sends is this:
"God bless our absent ones;
Father, protect thy sons,

On field or foam.

Give them brave hearts to fight; Use them to stablish right; Shield them with loving might, And bring them home."

THE NEW BOOKS

This Department will include descriptive notes, with or without brief comments, about books received by The Outlook. Many of the important books will have more extended and critical treatment later HISTORY, POLITICAL ECONOMY, AND POLITICS Mexico's Dilemma. By Carl W. Ackerman. Illustrated. The George H. Doran Company, New York. $1.50.

Fresh from two years' experience with the German character in Germany, this well-known newspaper correspondent went a year ago to Mexico to estimate the significance of the German activities there. The pressing question has been: Must the United States intervene in Mexico before that country can take its place among the great nations of the world? The answer, according to this author, is, "Yes; but there is more than one way of intervening in Mexico." He does not believe that we should be justified to-day in intervening there with armed forces to protect American life or property, because he has confidence in the possibilities of a Mexican Government if the leaders and the people are given an opportunity to work out their own political destinies. But-and this is a big but-if German intrigue continues to stir up hatred for the United States, and if the United States and her allies are attacked from Mexico, the situation might be changed overnight.

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POETRY

Sherman

Poems of Frank Dempster (The). Edited with an Introduction by Clinton Scollard. Houghton Mifflin Company, Boston. $5. Posthumous Poems. By Algernon Charles Swinburne. Edited by Edmund Gosse, C.B., and Thomas James Wise. The John Lane Company, New York. $1.50.

Retinue (The), and Other Poems. By Katharine Lee Bates. E. P. Dutton & Co., New York. $1.50.

TRAVEL AND DESCRIPTION

Small Place (The): Its Landscape Architecture. By Elsa Rehmann. Illustrated. G. P. Putnam's Sons, New York. $2.50. Delightful studies of the landscape possibilities of small places when treated intelligently and with imagination. Every owner or prospective owner of a suburban residence will find the book full of allurement and of helpful suggestion.

Village in Picardy (A). By Ruth Gaines. Introduction by William Allan Neilson. Illustrated. E. P. Dutton & Co., New York. $1.50.

A vivid picture is here given of the work of the Smith College Relief unit in France so far as it relates to the inhabitants of a single village. The sketches are personal and intimate and full of charm and sympathy.

MISCELLANEOUS

American Railway Accounting. A Commentary. By Henry C. Adams, Ph.D., LL.D. Henry Holt & Co., New York. $3. How to Swim. By Annette Kellerman. Illusrated. The George H. Doran Company, New York. $2.

Liberty Cook Book (The). A Guide to Good Living Combined with Economy. By Bertha E. L. Stockbridge. D. Appleton & Co., New York. $2.

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Here is a war cook book. "Four tablespoonfuls of brown sugar," "Two tablespoonfuls of syrup," "Eggless cookies," "Inexpensive ice-cream,' show its up-to-dateness. There are chapters on the new methods of canning and on substitute foods, and many useful ideas on conserving food without making our tables unattractive.

Physical Beauty: How to Keep It. By Annette Kellerman. Illustrated. The George H Doran Company, New York. $2.

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