Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-12-22
FIVE BILLION
MORE ASKED
BY M'ADOO
This Sum Necessary in Addition
to Funds Authorized for
Bonds and Taxes

today. that $5.l2S.203,193 must u"
provided in addition TO funds from
taxes and bond issues already author
lied. in order to make estimated re
cepits for the fiscal year ending June
20, 1915, equal disbursements. II this
deficit is met by new issue OF bonds.
the total amount Of securities TO be
issued in the next seven months is eS-
timated at s. ,96o, 433,SJ0.
For the next fiscal year, ending
June 30. 1919, the estimated excess o!
disbursements over receipts is $751;
973,9S0.
Huge war eXlenses AID loans 10
Americas allies at the rate of halt
billion dollars a month have maze
these estimates many times large
than any ever presented in score
tary OF the treasury's annual report.
OF the $I2,316,0O 900 estimated ordi
nary expenditures for the year end
ing next June 80, S1l ,527 100000 is for
war purposes. and the proportion Is
about the same for the fiscal year
ending in 1919.
All Must Save
So far the nation has borne the
financial burdens of the war we'll, 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 ami
business institutions, the secretary de-
clares, 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, McAdoO pro-
ceeds TO cite the enormous figures OF
government receipts and expeditureI
which are the fruit Of war times.
Total estimated receipts for the cur,
rent fiscal year are $12,5S0, 1872, 500,
which. with a balance in the treasury
last June 80 of $1.066, 1888, 1851, makes
total of $13.647,716,161 Most of tho
receipts, or $S.6S6, 100000 are from
sale of bonds and war saving certift-
Gates; ordinary receipts are $685.,
100000, largely from war taxes; and
the Panama Canal income is $1,000.
600. 1
Ordinary Disbursements
Ordinary disbursements are estt
mated at S12,316,295,2 2S; loans to al
lies in the year at S., 100000; pub
lie debt disbursements at 1891 600, 600;
and Panama Canal expenses, $685.
600, making total estimated disburse.
ments $1S,775,919,955.
In order to allow for balance in
the general fund of about $500, o00,000
next June 80, congress must author
ize raising of about $5,640,060OO
additional funds This figure, to-
gether with the 1855, 000,000 of au'
thorized but unissued Liberty Bonds
! and 1868 100000 estimated receipts
from war savings, make the $685.
000, 600 which McAdoo believes Amer
leans must loan the government be-
tween now and June 30, 1918.
For the next fiscal year, ending
June 80, 1919, the secretary estimated
receipts at $5,176,O00,060 and dis
bursements at $12,S04,03 ,449, exclu-
sive of allied loans. This makes
81 ,627, 000, 600 excess of disbursements.
II the present rate of loans to allies is
continued in the 1888 fiscal year,
81, 000, 600, 900 additional would be re-
quired. Estimated interest on bonds
to be issued that year is $685., co., 900,
and estimated expense of floating the
bond issues. SIS, 000,006
Thus if the deficit is to be met by
bonds, $4,000. 100000 worth must be
floated between July I. 1918, and June
50, 1919. in addition to receipts from
war savings.
while these figures represent the
situation as it appears today" the
secretary says. 1T should be borne in
mind that the exigencies of the fu'
ture may cause changes, particularly
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.
Cost to America
The outstanding fact apparent from
these stupendous figures is that the
cost of the war to the american peo-
pie, including allied loans, Tor the two
years ending June 50, 1919, Nilltbe at
least $G6, 600. 900 900.
To the great task facing the coun.
try Secretary McAdoo calls the peo'
pie with these words.
What is of superlative impor
lance in the readjustment} that
must take place is that our people
shall be impressed with the neces-
sity of economizing in the con-
sumption Of articles of clothing,
food and fuel, and Of every other
thing which constitutes a drain
upon the available supplies, mate,
rails and resources of the country
Everything wasted now is little
short of criminal.
Secretary MCAdCo denounced pur-
chasers of Liberty Bonds who sell
their bonds when they do not i'm
peratively need money.
McAdoO expressed the hope that all
ditional funds to be raised during the
balance of the year be by bond issues
rather than by taxation.
v. S. May Guide Capital
Secretary McAdoo disclosed that he
intends to recommend to congress
later in the session constructive and
regulatory laws to prevent capital