Evening star., 1917-12-05
D. S. NEEDS BILLIONS,
SECRETARY McAD00
ASSERTS IN REPORT
Continued from First Page,

the purchase Of needless food and cloth
ing for the man at home. and is. therefore.
saved wealth to the man at home and can
be loaned to his government at interest,
with resulting benefit to himself and to
his government"
chasersf of liberty bonds who sell their
bonds when they do not imperatively
need money.
TT is by actually lending money to
the, government and not by merely
promising it and shifting the load to
some one else" he said. that the citi-
zen really helps in this great time" He
added, however, that he did not mean
to discourage legitimate trading in gov
ernment securities.
additional funds to be raised during the
balance Of the year be by bond issues
rather than by taxation. saying:
TT Is my earnest conviction that the
general economy OF the country should
be permitted to readjust itself to the
new revenue laws before consideration
should be given to the imposition Of
additional tax burdens"
Possible Rise in Interest Rate.
OF the possibility that interest rates
on future liberty bond issues might be
raised, the Secretary said:
"If situation should develop where
the government could not sell con-
vertible and partly tax exempt bonds
upon a per cent basis. 1t would. l
believe. become necessary to seriously
consider further revenue legislation.
In my judgment an increase in the rate
of interest Of such bonds would be ex-
tremely unwise and hurtful."
Secretary McAdoo disclosed that he
intends to recommend to Congress
later in the session constructive and
regulatory laws to prevent capital
from going into public or private en-
terprises unnecessary for the war.
1T may also become necessary" he
measures through which essential cred
its may be provided for those indus
tries and enterprises In the country
essential to the efficient and successful
quires the best thought and study 1t
is receiving the most earnest consid-
Grafton.
The courage and resources of the
nation are so abundant that Americas
success in the war is beyond question
If they are properly organized and in
telligently used. The economic and
financial condition of the country was
was never more aroused to the impor-
tance and necessity of going forward,
resolutely and regardless of Sacrifice
to the accomplishment of the great
task to which God has called u.s."
Would Strengthen Reserve System.
The federal reserve system received
Secretary McAdoo's enthusiastic praise
for its part in the war financing program.
He pleaded for further Strengthening OF
the reserve system by the entrance Of
state banks and trust companies.
Intelligent men all over the country"
he said, ARE beginning to realize that the
financial power OF the United States
should be strengthened to the utmost
limit If we are to meet successfully the
tremendous strain upon our resources
occasioned by our own part in the war
and by the credits which it is essential
that we should extend to the foreign gov
ernments cooperating with us In the war
and IL we are to be equal to the demands
IN large measure, at least. the world
upon US as a result Of this war
financial strength can come alone from
a consolidation of the financial powers ~
the country under one homogeneous sys-