The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1917-12-18
COSTS OF WAR AND
FUTURE NEEDS ARE
TOLD TO CONGRESS
Document Presented To Congress BY Secretary Of Treasury Tells
OF Enormous Expenditures Already Made and To Be Made and
IS One OF the Most Important Statistical Writings Ever Given
To Congress of the United States 5HeEa.3 b.

vided 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 disbursements. II this deficit is
met by a new issue Of bonds, the total
amount of securities TO be issued in
the next seven months is estimated at
80, 900. 433,s50. T.. ..
For the next fiscal year, ending June
30, 1919, the estimated excess of dis.
bursements over receipts is 1902 ,973,.
$50.
Huge war expenses and loans TO
Americas Allies at the rate of half
billion dollars month have made these
estimates many times larger than any
ever presented in secretary of the
treasury 3 annual report. OF the 1916.
100000 estimated ordinary expenditures
for the year ending next June 30,
$ll,527 ,000,0 0Ois for war purposes, and
the proportion is about the same for
the fiscal year ending In 1919. ...
Greater Economy Necessary ..'
SO far the nation has borne the
financial burdens of the war well, says
Secretary MeAdoo, owing to healthy
business conditions, and the valuable
aid of the established federal reserve
system. In the future, however, in
creasingly greater habits of economy
must be developed by individuals and
business institutions, the secretary de.
.clares, and Cuisines as usual'' can.
not be adopted as the guiding principle
of the war. People must save and in.
In. ~ A. I.
postponing victory.
With this admonition, Mr.. MeAdoo
proceeds TO cite the enormous figures
Of government receipts and expendi-
lures which are the fruit of war times.
Total estimated receipts for the eur.
rent fiscal year are $12,5S0, 732, 800,
which, with balance in the treasury
last June 30 of 81, 066, 9S3 1861, makes
q total Of $l3,647, 1851. Most Of
the receipts, or 1850, 900 900, are from
sale Of bonds and war savings certifi.
Gates; ordinary receipts are $3.50, 900, :.
600, largely from war taxes; and the
Panama Canal income is 100000.
Nearly Ninteen Billion
Ordinary disbursements are est.
mated at $l2y3l6,295, 223; loans TO
Allies in the year at 80, 115,00O, 600;
public debt disbursements at 1921 900.
900; and Panama Canal expenses, $685..
$4,000; making total estimated diS.
bursements $1S,775,9l9,955.
In order to allow for balance in the
general fund of about $500, 5000 next
June 30, congress must authorize rails
ing of about $5y640, 900 900 additional
funds, This figure, together with the
$3,666,0 900 OF authorized but unis-
sued Liberty Bonds, and $685., 900 900
estimated receipts from war savings,
make the $9,969000,0 900 which Mr.. Me.
'Adoo believes Americans must loan the
government between now and June 30,
1918. Hr.l
For the next fiscal year, ending June
30, 1919, the secretary estimated re-.
ceipts at $5,I76OO0 600 and disburse-
ments at $l2, s04 ,O34, 440, exclusive Of
allied loans. This makes a 1892 900,
600 excess of disbursements. If the
present rate of loans to Allies is con
tinued in the 1854 fiscal year, So 900,
100000 additional would be required.
Estimated interest on. bonds to be is
sued that year is 1886, 900 900, and es,
tfmated expense of floating the bond is,
sued $2S,OO0,00O.
Thus If the deficit is to be met by
bonds, $4,000 000, 900 worth must be
floated between July l, 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, ait should be borne in
mind that the exigencies of the future
may cause changes, particularly with
regard to the estimates for the War
and Navy departments. The est,
mates on which the secretary bases his
figures are made by the various gov.
eminent departments.
Cost Thirty-six Billions
The outstanding fact apparent from
these stupendous figures is that the
cost of the war to the American peo-
Pile, including allied loans, for the two
years ending June 80, 1919, will be at
least $4,000, 100000. i. a..
To the great task facing the country,
Secretary McAdoo calls the people with
these words: bj4 T.sE
"What is Of superlative Importance
in the readjustment that must take
place is that our people shall be i'm
pressed with the necessity of economic,
ing in the consumption of articles of
clothing, food and fuel, and Of every
other thing which constitutes a drain
upon the available supplies, materials,
and resources Of the country. Every
thing wasted now is little short Of
criminal, e..
People Not Aroused ~.
$50 far as / have been able to OBJ
serve, the American people are not suf
fieiently 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 relatively small denial Of pleas.
ures; comforts, and eonveniences on the
part Of the average citizen. He Is
drawing upon the general store Of sup
plies in the country with almost the
same freedom as before America came
into the war, This. caunot continue
without serious hurt to the nation and
TO the world. The great financial OPP
eratioDs of the government cannot be
carried forward successfully unless the
people of the United States economic
in every possible direction, save their
money and lend II 10 the government ,
aoud gailAra nanouucAd I''H. t..