The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1917-12-05

est on bonds to be issued that year
Is 1886, O0O, 900, and estimated ex-
pense Of floating the bond issues $751;
0OO, 900.
Thus IL the deficit is to be met by
bonds, $14, 1910, 0O0,0OO worth must be
fioated between July i, 1918 and
June 30. 1919 in addition to receipts
from war savings.
While these 7gures represent the
situation as 1t appears today" the
secretary says, 1T should be borne
In mind that the exigencies Of the
| future may cause changes, particu-
larry with regard to the estimates
for the war and navy departments. /"
The estimates on which the secretary
bases his figures are made by the
various government departments.
Total Cost of War.
| The outstanding fact apparent
| from these stupendous figures is that
the cost of the war to the American
people, including allied loans, for
the two years ending June 80, 1919,
will be at least 5000, 100000.
To the great task facing the coun-
try, Secretary McAdoo calls the peo-
pie with these words:
What is of superlative importance
Ia the REIMBURSEMENT that must take
place is that our people shall be inn
pressed with the necessity Of econ
omizing in the consumption of artt-
cles of clothing, food and fuel, and
Of every other thing which consti-
tutes a drain upon the available sup
plies, materials, and resources of the
country. Everything wasted now is
little short of criminal.
$50 far as have been able to OBJ
serve, the American people are not
sufficiently aroused to the necessity
Of economy and of saving in this
really serious time. not only in the
life Of America, but of the nations OF
the world. Up to the present there
has been a relatively small denial OF
pleasures, comforts, and convent
ences on the part of the average citi-
zen. He is drawing upon the gen.
eral store of supplies in the country
with almost the same freedom as
before America came into the war.
This cannot continue without serious
hurt to the nation and to the world.
The great financial operations of the
government cannot be carried for
ward successfully unless the people
Of the United States economic in
every possible direction, save their
money and lend it to the govern
ment."
NOSE VINO 6Gll 5UH0SB
Secretary McAdoo denounced pur-
chasers of Liberty bonds who sell
their bonds when they do not i'm
peratively need money.
1T is by actually lending money
to the government and not by mere
ly promising it and shifting the
load to s2rae one else" he said, that
the citizen really helps in this great
time." He added, however, that he
did not mean to discourage legiti-
mate trading in government secur-
tiles.
Mr.. McAdoo expressed the hope
that additional funds to be raised
during the balance OF th@year be by
bond issues rather than by taxation,
saying:
1T is my earnest conviction that
the general economy of the country
should be permitted to readjust It
self to the new revenue laws before
consideration should be given to the
imposition OF additional tax burdens"
OF the possibility that interest
rates on future Liberty bond issues
might be raised. the secretary said:
II a situation should develop
where the government could not sell
convertible and partly tax exempt
bonds upon q 4 per cent basis, 1t
would, believe, become necessary to
seriously consider further revenue
legislation. In my judgment an in
crease in the rate Of interest of such
bonds would be extremely unwise
an hurtful.". .. ..FE
Secretary McAdoo disclosed that
no 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.
Praises Reserve System.
The federal reserve system receiv-
ed Secretary McAdoo's enthusiastic
praise for its part in the war financ-
ing program. He pleaded for furth-
er strengthening of the reserve sys-
tenn by the entrance Of state banks
and trust companies.
Loans TO Allies.
Up to one week ago credits ex-
tended to allied governments
amounted to $S,SS3, 900,0 900. The lat
est loans have been at Ala per
cent, but Secretary McAdoo explain
ed that this rate in turn will be
further increased in case there
should be higher rates OF interest
paid by the United States during the
continuance of the war for the
hA0uE9S llaL II may invest. III. lIA0
purchase of foreign obligations"
Both Liberty loans this year, one
aggregating $4,000, 0O0, 900, and the
other $3,S0S. 900, 600 have been fac
Inflated, said the secretary, by issu-
ance Of short time certificates in adj
vance Of the loans. The bond I'm
ancing also was aided by the desig-
nation OF 1903 national and ], 34S state
banks to receive deposits on ac-
count of their subscriptions without
the necessity Of making applications
and being designated each time they
subscribe to certificates and bonds
and desire to pay for them by credit.
The humanitarian benefit of the
soldiers and sailors insurance sys-
tenn was praised by the secretary.
The internal revenue bureau, Mr..
McAdoo said, has stupendous task
to collect $1,000, 900, 900 during the
current fiscal year, and is accom-
plishing this largely with the guild
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