New-York tribune., 1917-07-17
S5,OOO,OOO,OOO Loan
May Be Required
In Two Months
Half of Liberty Issue Pro.
ceeds' Are Already
Exhausted

Washington, July l6.-Unless the un-
foreseen develops. Congress probably
will be asked before adjournment Of
the present session TO authorize an
other gigantic loan to the Allies. The
present authorization of s3,000,000, 900
will be exhausted within from three 10
four months. at the rate at which the
government is lending money to Entnte
governments.
Indications are that the amount OF
the second authorization will be no less
than the first, and may go as high as
S5,OOO,OOO,OOO
There is every reason to believe that
the Administrator policy of financing
the Allied governments for purchases
they make in this country will be con-
tinued during the period of the war,
and that the vast sums to be loaned
them in the future will be loaned as in
the past, at the same rate of interest
the American government will have to
pay for the money and on the security
of Entente government bonds TO be de-
posted in the Treasury.
Half of Loan Exhausted
While no official announcement has
been made of what the government in
tends to do toward continuing TO
finance the Allies when the present au-
thorized loan of $4,000, 100000 is ex-
hausted, none is likely TO be made until
after the fotation Of the next Liberty
loan, some time during the fall. II is
pointed out that nearly one-half Of the
S3,000,0 100000 already has been exhaust
ed. The amount of credits placed to
foreign governments already is Sl,303,-
100000, or approximately 43 per cent
of the total, and this covers the fnanc-
ing Of only two months and twenty
days.
Total credits to the Allies probably
will approximate 81 800, 100000 by July
%, three months after the signing of
the war finance bill under which au-
thority for the loan was given Con-
gress. Should the loans during the
next three months be at the same rate
as during the last three, the entire
$4,000 900, 900 will be exhausted by Oc-
tObcr -.
Without authority of Congress the
government cannot exceed the $3,000,-
000, 900 limit named in the bill, and the
next session of Congress will not con-
vene until December.
Lending s50o,ooo,ooo a Month
During the first three months the
rate of lending has been approximately
$500 900, 900 a month. Extended, 1t
would mean an annual loan of S6,000,-
600 900 abroad. all the funds, of course,
being spent in this country for food
stufs. munitions and other supplies.
Estimated costs to the American gov
errment for its military and naval es--
adjustments during the first year OF
war were placed at approximately S+.-
600 900 600 soon after war was declared.
The total of these two items, It Is be-
lieved. was the figure Secretary McAdoo
had in mind when he declared in his re-
cent speeches on behalf of the Liberty
Loan that the government would be
called upon TO raise $4,000, 100000 dur
ing the first year OF war.
Present indications are that Congress
will remain in session till late in Octo-
ber, and that the war revenue bill VIII
be among the last Of the big measures
TO be disposed Of Il is not unlikely
that authorization FOR the additional
loan TO the Allies. when sought, Will be
taken up about the same time, possibly
as an amendment to the revenue bill.