Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-04-27
u. S. MUST LEND ALLIES
s500,000,000 A MONTH
Preliminary Reports to Treasury
Upon Which AIcAdoo Will Base
His Recommendation.
ALL WILL BE SPENT HERE
Numerous Conferences in Prospect
With Foreign Representatives Be
fore Details Can BE Arranged and
Program Put in Shape.

WASHINGTON. April 26.-Prelim-
nary reports to the Treasury Depart
ment. upon which Secretary McA doc
will base his recommendations TO the
President a 8 to the size Of the first bond
| issue under the $1,000. 100000 war
| finance BILL indicate that the United
States will be called upon to finance the
allies to the extend OF at least 100000
600, and possibly s50o.000, 600, a month
The tentative program also calls for
the expenditure of virtually every dol
lar Of the borrowed money in this
country for foodstuffs. munitions. coal
and other supplies.
The estimates indicate the following
entente needs:
For Great Britain. sa00.000,oo6 to
$3.50 0.O00.000 month; for France. from
100000 900 to sl25.O00.000; for Russia
sum undetermined, but up to $780,
100000 a month and for Italy, about
$50 900 900 a month
| Under these requirements. the $4,000
100000 available for lending the allies
would be exhausted in from six to
seven and one-half months 1t is
! likely. however. that the preliminary
estimates can be pared down, SO that
the huge loan could be made to cover
POSSIBLY one year.
| STUDY OFF ENTENTE
FINANCIAL NEEDS
Secretary McAdoo and his assistants
devoted to-day to study Of entente
financial needs. The callers at the
Treasury included Lord Cunlifte. gov
crnor of the Bank OF England with Sir
Cecil Spring Rice. the British ambas-
sador. and other embassy officials;
delegation from tho French commits
sion. which arrived here yesterday. and
the Italian amba ssador. Count di Gel
lere.
There were indications that Mr.. Nc
Adoo would consider favorably the sug-
gestion that he offer soon another block
of Treasury certificates to the banks
OF the country through the Federal
reserve banks. The second Offering. IL
! was said. proba bly, would be the same
size as the first. S25o,OOo.ooO Should
the government decide to finance the AL
lies. at $500. 100000 month. approxi-
inatcly $1,000, 100000 would be needed
to meet requirements prior TO June 30.
the date upon which the first proceeds
of the bond issue probably will he
availa bic.
Secretary McAdoo is favorably in
clined to the liberal use Of the certin-
Gates OF indebtedness as means for
casing the strain upon the country's
| finances. in connection with the bond
! issue
GRADUAL WITHDRAWAL
| RELIEVED PREFERABLE
Withdrawing money from the mar
kets at the rate OF s2a0 O0o. 900 every
two or three weeks by the issue Of
| blocks of certificates officials believe,
would he preferable TO n sudden call
for proceeds of a $1,000 0oo. 900 bond
! issue
Thus, should $1,000 900. 600 in ccrtin-
Gates he issued prior to June so half
OF $4,000, 100000 bond issue would
virtually have been withdrawn from
the money markets prior TO It's issue.
as the certificates carry tho conversion
privilege.
| In this manner. 1t Is thought, tn.
banks OF the country will be in a
strong position to meet tho strain of
war financing. and minimum disturb
ance OF financial conditions would re-
suit.
Numerous conferences with foreign
government representatives appear in
prospect before the details can be
' formulated.