The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1917-07-26
M'ADOO SEEKSNEW
MEANSO Of REVENUE
TOGET ) BILLIONS

The War Departments demand for
$4,000. 900 900 for the prosecution OF
the war took Secretary OF the treas
ury McAdoo completely by surprise
and he is at a loss to know how to
and new sources Of revenue.
1t has developed that Mr.. McAdoo
was not taken into the confidence OF
the War Department until q short
time before the $1,000. Ooo, 900 estimate
was handed to him for transmission
to Congress.
Immediately he set experts Of the
internal revenue bureau to work.
figuring out amounts which could be
raised from various sources, but is
having great difficulty in finding
reservoirs Of wealth which con
venientiy may be tapped to the tune
OF q billion dollars, the amount which
Senator Simmons, chairman Of the
Senate Finance Committee, says must
be raised by taxation TO help make
up the $4,000. 900 900 budget.
With the proceeds of the $1,000
900 900 loan, which had been paid In
up to July /, diminished by nearly
half in the first three weeks Of July
and with vast expenditures staring
the Treasury in the face, the situa-
ton would not be exactly q comfort
able one were II not for the Seere-
tary's power to sell nearly S2.OOO'OOO,-
900 in short term Treasury certifi-
eateB Of indebtedness.
Paper Payments Seen
Study OF the Treasury statement
reveals that there is only a little
more than $500, 900 900 in cash yet
to come from the Liberty loan. On
the books 1t is seen that about $780,
100000 OF subscriptions still is un-
paid, but againAt this must be check
ed approximately 100000. 900 in
Treasury certificates still outstand-
ing, and which in all probability will
be paid in on Liberty loan subscrip-
tions. This means that for half OF
the remaining resources available on
account OF the loan the Treasury will
receive only paper. The money II
received for that paper last May has
been spent or else lent to. the allies.
On July "a the. net balance in the
general fund Of the Treasury fell off
more than $50, OOo, 900 and an authori-
made in favor OF Russia July %, is a
further immediate liability against
the net balance. Payments on &C
count Of environments and other big
army contracts are beginning to fall
due, increasing the drain on the
Treasury. There is less than half q
billion in the Treasury today.
The sharp change in the financial
policy OF the country indicated by
the action OF the Administration yes
terday in authorizing the Dominion
OF Canada TO go into the open mar
ket in the United States and sell
800. OoO, 900 in securities to enable
Ranada to get some ready cash is
regarded as a straw which shows the
wind.
Aliens Held on.
Almost immediately after this coun-
try entered the war Great Britain
sought to sell a $500. oOO. 900 batch of
Canadian Pacific railway securities in
the United States through ]. p. Nor
gan q Co. Hearing Of the impending
transaction, Secretary McAdoo called
IN the British ambassador and con-
cluded a Government loan Of $780,
ooO. 900 to great Britain in order to
prevent disturbance of the American
investment field by foreign financing.
Later. the Treasury was informed
that the Republic Cf Cuba sought TO
sell part of a $50 100000 bond issue
IN the United States. The Govern
ment put a stop to this transaction.
and was willing to make a loan to
Cuba rather than permit the open
market financing. Cuba succeeded in
placing her loan at home, and that
difficulty was solved.
Sir Thomas White. finance minister
Of Canada. has been in almost daily
conference with Secretary McAdoo for
the last ten days on the subject OF
Dominion war finances. Those con-
ferences resulted In Government sane
tion for a Canadian loan OF S1OO. 900 900
here, in contradiction OF he policy
which has dictated that foreign gov
srnments keep their hands out of the
American peoples purse. II is under
stood that the sole reason for the
change IL that American Government
finances do not at this stage permit
Of any other procedure.
However, Administration officials
are sanguine that the straitened cir
eumstances Of the moment soon will
be remedied. knowing the willingness
of the country to quickly Absorb an
other loan.