The Hartford republican. (Hartford, Ky.) 18??-1926, 1917-07-20
ANOTHER GREAT
loan IS LIKELY
PRESENT CONGRESS MAY BE
ASKED TO PROVIDE FOR
:, FIVE BILLION.
CREDIT IS NECESSARY
American Policy OF Financing Allies
To Completion or War To
Continue.

Washington, July lI-Unless the
unforeseen develops, Congress, prob
ably will be asked before adjourn
ment of the present session to au-
thorize another gigantic loan to the
Allies. The present authorization of
$4,000. 900, 900 will be exhausted
within from three to four months, at
~the rate at which the Government
lis lending money to Entente Govern
ments.
Indications are that the amount
OF the second authorization Will be
no less than the first, and may go
S,s high as $4,000, 100000.
' There is every reason to believe
that the Administrators policy or
financing the allied Governments for
purchases they make in this country
will be continued during the period
of the war, and that the vast sums
TO be loaned them in the future VIII
be loaned as in the past, at the
same rate of iaterest the American
Government will have to pay for the
money and on the security OF En-
tente Government bonds to be de-
posted in the Treasury.
Half Of Credit Exhausted.
While no official announcement
has been made of what the Govern
ment intends to do toward continu-
ing 10 finance the Allies when the
present loan of s3.0O0,0OO,OO0 Is ex-
bausted, and none is likely to be
made until after the fiotation OF the
next Liberty Loan some time during
the fall. Il is pointed out that nearly
one-half of the. $4,000 100000 al
ready has been exhausted. The
amount OF credits placed to foreign
Governments already is s1,3O3,oOO,-
900, or approximately AZ peF cent. OF
the total and this covers the hnanc-
ing of only two months and twenty
days.
Total credits to the Allies probably
will approximate s1,50O,OoO,OOO by
duly a5, three months after the sign
ing of the War Finance Bill under
which authority for the loan was
given by Congress. Should the loans
during the next three months be at
the same rate as during the past
three, the entire $4,000, 100000 will
be exhausted by October 20.
Without authority of Congress the
Government cannot exceed the 49,
600 .O0O, 900 limit named In the Dill
aud the next session of Congress VIII
not convene until December.
Half Billion Monthly.
During the first three months the
rate of lending has been approx
mately $500 900, 1000 a month. Ex-
bsnded Il would mean an annual loan
of $4,000 ,OOO, 900 abroad all the
funds, of course. being spent in this
country for foodstuffs, munitions and
other supplies. Estimated costs to the
American Government for its mill
tary and naval establishments during
the first year of war were placed at
unfortunately S4,000,0OO,OOO soon
after the war was declared.
The total of these two items, 1t Is
believed, was the figure Secretary
McAdoo had I'm mind when he de-.
clared in his recent speeches on be-
half of the Liberty Loan that the
Government would be called upon 10
raise $4,000. 900, 700 during the
first year of war.
Present indications are that Con-
gress will remain in session till late
in October, and that the War heve-
nue. Bill will be the last of the big
measures to be disposed of. II is not
unlikely that authorization for the
additional loan to the Allies, when
sought, will be taken up about the
same time. possibly as an amendment
to the Revenue Bill.