The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1917-04-27
Virtually Every Dollar
Loaned to Allies Will Be
Spent in America.
ENGLAND GETS MOST
Three Billions Now Avail
able May Last Year-New
Plans for Issues.


report to the treasury department,
upon which Secretary McAdoo will
base his recommendations to the presi-
dent as to the size of the first bond
issue under the $7.OOo,Ooo,OoO war fl
nance law, indicates that the United
States will be called upon to finance
the allies to the extent of at least
10000, 900 and possibly $5oo,ooO,ooo
month.
The tentative program also calls for
the expenditure of virtually every dol
lar of the borrowed 'money in this
country for foodstuffs, munitions, coal,
clothing, railway equipment and other
supplies. The estimates indicate the
following entente needs:
For Great BRITAIN, 00,000000 to
s25O,0O0,Oo0 month; for France, from
s100.OO0,OO0 to $l25.OOOo0o: for Rus
sa. a sum up to $1OO.00o.o00 a month,
depending upon the ability of manu-
featuring plants in this country to
meet her demands, mostly for supplies
other than foodstuffs and munitions;
for Italy about $50.o00,ooo month.
Should these requirements be met in
their entirety, the $4,000, 100000 avail
able for lending the allies would be
exhausted in from six to seven and
one-half months. 1t is likely, how
ever, that the preliminary estimates
can be pared down to a point where.
without emitting essentials, the huge
loan can be made to cover require
ments for a much longer period of
time, possibly for one year.
Secretary McAdoo and his assistants
of the entente financial needs and
methods to be followed in placing the
money at their disposal. During the
day the callers at the treasury in
cluded Lord Cunliffe, governor of the
Bank of England. with Sir Cecil
Spring Rice, the British ambassador
and other officials. delegation from
the French commission which arrived
here yesterday and the Italian am
bassador. Count di Cellere.
More Treasury Certificates.
Indications We're that Mr.. McAdoo
would consider favorably the sugges-
ton that he offer soon another block
of treasury certificates to the banks of
the country through the federal re-
serve banks. The second offering, it
was said, probably would be the same
size as the first, $25O.000,000, and
might be offered within 10 days.
Should the government decide to fl
nance the allies to the extent of $780,
100000 a month, approximately $1,000
100000 would be needed to meet re-
puirements prior to June 80, the date
upon which the first proceeds of the
bond issue probably will be available
Raising $1,000 00O, 900 before the first
proceeds of the first bond issue are
available could only be accomplished
by the issue OF first lots of certificates
of Indebtedness. Should the govern
ment decide to raise this sum, it could
be done by Offering three more blocks
of certificates, 100000 to each Of
fering. about three weeks part.
Secretary McAdoo is favorably in
cined to the liberal use of the coun-
try's finances in connection with the
bond issue. Under the terms of the
war finance law he is not limited to a
total issue of $4,000, 100000, but is
limited to an outstanding indebted
ness of 100000 900, represented by
this form of security. 1t would be pos
sible therefore for him to issue far
more than $4,000. 5000 altogether. re-
firing the certificates with bonds in
such a manner as to bring the total
due on certificates at any one time
well within the $4,000, 900, 900 limit
Withdrawing money from the mar
kets at the rate of $25O,00O,0OO every
two or three weeks by the issue of
blocks of certificates, officials declare,
would be preferable to a sudden call
of proceeds of a $2,O00,O00,0OO bond
issue. Thus, should 100000 900 in
certificates be issued prior to June 80,
half of $2,0o0,o00,00O in bond issue
would virtually have been withdrawn
from the money markets prior to it's
| issue. as the certificates carry the con-
version privilege and doubtless would
be exchanged for bonds.
In this manner, it is thought, the
banks will be in a strong position to
| meet the strain of war financing and
minimum disturbances of financial
conditions would result
|