The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1917-12-08
M'AD00'S ANNUAL REPORT
OF TREASURY IN
FORMS CONGRESS- OF MON
EY NEEDED.

Washington, Dec. 5.-Congress was
informed by Secretary McAdoo in his
annual report submitted today that
$5,12S. .203,793 must be provided in
addition to funds from taxes and bond
issues already authorized in order to
make estimated receipts for the fiscal
year ending June 80, 1918 equal dis
bursements If this deficit is met by
new issue of bonds, the total amount
of securities to be issued in the next
seven months Is estimated at $9,969,-
4S3,S5O.
For the next fiscal year, ending June
80, 1919, the estimated excess of
disbursements over receipts is $7,627,-
973,9S0.
Huge war expenses and loans to
Americas allies at the rate of a half
billion dollars a month have made
these estimates many times larger
than ever presented in secretary of
the treasury's annual report. OF the
$12,S16, 100000 estimated ordinary ex-
penditures for the year ending next
June 80. $11,527, 100000 is for war
and the proportion is about
the same for the fiscal year ending in
1919.
SO far the nation has borne the
financial burdens of the war we'll, says
Secretary McAdoo, owing to healthy
business conditions, and the valuable
aid of the established Federal Re-
serve System. In the future, however,
increasingly greater habits of econ
omy must be developed by indiyid-
uals and business institutions, the
secretary declares, and business as
usual cannot be adopted as the
guiding principle of the war. People
must save and invest in government
securities to avoid postponing victory.
With this admonition, Mr.. McAdoo
proceeds to cite the enormous figures
of government receipts and expendi-
lures which are the fruit of war
times
Total estimated receipts for the cur
rent fiscal year are $12,5SO,732,SOO,
which, with a balance in the treasury
last June 80 Of $1.O66, 6,9S3,361, makes
a total of s13,647,716,161. Most of
the receipts. or sS,6S6,000, 900, are
from sale Of bonds and war savings
certificates; ordinary receipts are $3,-
SS6.9D0,OOO. largely from war taxes;
and the Panama Canal income is
81, 100000.
Ordinary disbursements are esti-
mated at 316,295,22S; loans to
alliessfn the year at $6,115, 900, 900;
public, debt disbursements at $321,-
)00,0o0 and Panama Canal expenses,
s2S ,593 5000; making total estimated
$1S,775,919,955.
In, order to allow for a balance in
the general fund of about $500, ,OOO,-
600 next June $50, congress must au-
thorize raising Of about $3.50, ,000,-
600 additional funds. This figure, to-
gether with the $3,666, 900, 900 of au-
thorized but unissued Liberty Bonds,
and 1868, 100000 estimated receipts
from war savings, make the s9,969,-
100000 which Mr.. McAdoo believes
Americans must loan the government
between now and June 80, 1918.
For the next fiscal year, ending
June 80, 1919, the secretary estimat-
ed receipts at $5,176, 100000, and
disbursements at $12,S04.O34,44O, ex-
elusive of allied loans. This makes a
$7,627, 100000 excess of disburse-
ments. If the present rate of loans
to allies is continued in the 1918-19
fiscal year, $6,OOO,OOO,OOO additional
would be required. Estimated inter-
est on bonds to be issued that year is
1885, 100000, and estimated expense
of floating the bond issue, $4,000, 900.
Thus If the deficit is to be met by
bonds. $4,000, 100000 worth must be
fioated between July 1, 1918 and June
80. 1919. in addition to receipts from
war savings.
''While these figures represent the
situation as it appears today" the
secretary says, lit should be borne in
mind that the eXigencies of the future
may cause changes. particularly with
regard to the estimate for the war
and navy departments" The esti-
mates on which the secretary bases
his figures are made by the various
government departments.
The outstanding fact annarent