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As I wrote last month, if your loan is changed to a 5-year
loan, so that the Work is not legally bound to repay more than 20%
in any one calendar year (or fiscal year from a stated date), IF an
unexpected emergency causes you to NEED more than 20% in any year
-- then IF you will write to us, explaining the circumstances, we
will do the best we can to help you. But if it can be set up on
our books as a long-term loan instead of a demand loan, it will
make a great difference in our financial statement.
Let me restate: Even I, myself, had somehow ASSUMED that to
let this money be USED in the Work -- but AS A LOAN -- would help
the Work just as much as to make it an outright donation or
freewill offering. BUT THAT IS NOT TRUE! As a loan, it must show
on our books as a LIABILITY, not as an asset. And I also repeat:
Our experience had shown that out of hundreds of such loans over
many years, about 80% of our Co-Workers were able, later, to turn
the loans into out-right freewill offerings. Only about 20% found
It necessary to ask for their money back. But of course we could
not show that fact on our books. The books had to show the ENTIRE
number of loans as LIABILITIES. Thus, this has been damaging our
financial statements. For the entire amount had to be shown as
DEMAND loans, due instantly on demand.
To protect our Co-Workers who had made loans, we have been
keeping a special cash reserve fund in the bank equal to 20% of the
total amount of loans. We have been, therefore, able to put only
80% of such loans TO WORK in the Gospel.
Since my last letter, there has been a sharp decrease in
the number of loans sent to the Work. And nearly all of those have
been, as I requested, on the repayment basis of not more than 20%
in any one year. Also, we believe, many who would otherwise have
sent the larger sums as a loan sent them as an offering. I AM VERY
GRATEFUL FOR THIS.
I have called for a special top level meeting at my office
within the next few days to make final decision on what steps we
must take, in this supreme emergency. My son, Garner Ted, is now
at the Texas campus, along with our traveling television crew.
They expected to be at Cape Kennedy tomorrow morning for the
launching of this Apollo shot. It has now been postponed until
Monday morning. So my son and crew will fly to Pasadena
immediately after the launching. Hopefully they will be here in
time for the meeting sometime this next week. I have appointed Mr.
John Butterfield of England as overall Director of Printing -- over
all four of our large printing plants -- in England, Texas,
Pasadena, and Sydney, Australia. I am having him fly from England
for this meeting.
Mr. Butterfield had informed me that his budget for
printing -- for this present year -- would have to be greatly
increased, due to the heavy additional printing requirements
resulting from the overwhelming response from the big advertising
campaign. WE SIMPLY DO NOT HAVE THE MONEY TO GIVE HIS DEPARTMENT
THIS INCREASE. Apparently the only way around it is to forthwith
CANCEL most of this advertising, all around the world. I now have
in mind the NECESSITY of cancelling at least 50 or more radio