Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1917-12-06


June 80, Congress must authorize raising
This figure, together with the SO, $50. 0J0, O0)
of authorized but unssued Liberty Bonds,
and 1868, 900 900 estimated receipts from war
savings, make the 50 1863 100000 which Mr..
McAdoo believes Americans must loan the
government between now and June 80,
1915
! For the next fiscal year, ending June 80,
1919, the secretary estimated receipts at
So, 176, 600. COO, and disbursements at s12S04.-
034,440, exclusive of allied loans. This
makes a 1851, 900, 600 excess of disburse-
ments If the present rate of loans to
allies is continued in the 1888 fiscal year,
Sc, 600 600 additional would be required
Estimated interest on bonds to be issued
that year is $685., 100000 and estimated ex-
pense of floating the bond issued s2S 000,-
GOO
Thus if the deficit is to be met by bonds
S14, 040, 100000 worth must be floated be-
tween July /, 1918 and June 80, 1919, in ad
diton to receipts from war savings.
while these figures represent the sit
uaton as it appears today" the secretary
says, "it should be borne in mind that the
tc'b.oN
changes, particularly with regard to the
estimates for the War and Navy Depart
ments." The estimates on which the Sec
rotary bases his figures are made by the
various government departments.
The outstanding fact apparent from
these stupendous figures is that the cost
OF the war to the American people. in
Guiding allied loans for the two years
ending June 80, 1919, will be at least $36,
600 COO
To the great task facing the coun-
try, Secretary McAdoo calls the peo-
pie with these words:
what is of superlative importance
in the reimbursement that must take
place is that our people shall be i'm
pressed with the necessity of econo-
MIXING 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
thin wasted now is little short of
criminal.
80 far as | have been able to OBJ
serve. the American people are not
sufficiently 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 conveniences on
the part OF the average citizen. He is
! drawing upon the general store of sup
plies in the country with almost the
freedom ma
into the war. This cannot continue
without serious hurt to the nation and
to the world. The great financial
! operations 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 it to the
F.! government"
1T is easy TO visualize the course of
dollar saved from waste and invest
ed in government bonds: First it goes
! TO the government as a loan for the
war; second, II is expended by the gov
! eminent for food, clothing and am
I munition which 90 directly to a gallant
soldier or sailor whose fighting
strength is kept up by the food, whose
body is kept warm by the clothing, and
whose enemy is hit by the ammuni-
ton. 1t has not been expended in the
purchase Of needless food and clothing
for the man at home, and is, therefore.
released tor the use of the soldier; it
4 is saved wealth to the men at home
and can he loaned to his government at
interest. with resulting benefit to him
self and to his government"
! Secretary McAdoo denounced pur-
chasers OF Liberty Bonds who sell
their bonds when they do not impera-
| lively need money
/ ut rs by actually lending money to
the government and not by merely
promising it aBd shifting the load to
some one else" he said, that the citi-
zen really helps in this great time"
He added however, that he did not
mean to discourage legitimate trading
in gOVernemnt securities.
Mr.. McAdoo expressed the hope that
additional funds to be raised during
| the balance of the year be by bond is
sues rather than by taxation saying:
1T is my earnest conviction that the
general economy OF the country should
be permitted to readjust itself TO the
new revenue laws before consideration
should be given to the imposition of
4 additional tax burdens"
OF the possibility that interest rates
on future Liberty Bond issues might
be raised. the Secretary said:
IF a situation should develop where
the government could not sell converti-
BILE and partly tax exempt bonds upon
a per cent basis. it would, | believe,
| become necessary to seriously consider
| further revenue legislation. In my
| judgment an increase in the rate of in
terest of such bonds would be extreme
I ly unwise and hurtful."
/ Secretary McAdoo disclosed that he
| intends to recommend to Congress later
in the session constructive and regu-
/ atory laws to prevent capital from GO
| ing into public or private enterprises
unnecessary for the war.
1T may also become necessary" he
added. ITO concert some constructive
measures through which essential
credits may be provided for those in
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