The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1917-12-08

or supplies in the country with al
most the same freedom as before
America came into the war. This
cannot continue without serious hurt
to the nation and to the world. The
great financial operations of the gov
crnment cannot be carried forward
successfully unless the people of the
United States economize in every
possible direction, save their money
and lend it to the government"
Secretary McAdoo denounced pur-
chasers of Liberty bonds who sell
their bonds when they do not imper-
atively need money.
1T is by actually lending money to
the government and not by merely
promising it and shifting the loan to
some one else," he said, that the
citizen really helps in this great time"
He added, however, that he did not
mean to discourage legitimate trad
ing in government securities.
Mr. McAdoo expressed the hope
that additional funds to be raised
during the balance of tho year be by
bond issues rather than by taxation,
saying:
1T is my earnest conviction that
the general economy of the country
should be permitted to readjust it.
self to the new revenue laws before
consideration should be given to the
imposition of additional tax burdens.
or the possibility that interest rates
on future Liberty bond issues might
be raised, the secretary said:
IF situation should develop where
the government could not sell con-
vertible and partly tax exempt bonds
upon per cent basis it would, I
believe, become necessary to serious
ly consider further revenue legisla-
ton. In my judgment an increase in
the rate of interest of such bonds
would be extremely unwise and hurt
full"
Secretary McAdoo disclosed that he
intends to recommend to congress Ia
ter in the session constructive and
regulatory laws to prevent capital
from going into public or private en-
terprises unnecessary for the war.
1T may also become necessary"
he added, "to concert some construc-
tive measures through which essen-
tial credits may be provided for those
industries and enterprises in the coun-
try essential to the efficient and sue
cessful conduct of the war. The sub
ject requires the best thought and
study. 1t is receiving the most earn
est consideration
THE courage and resources of the
nation are SO abundant that America s
success in the war is beyond question
IT, they are properly organized and in
telligently used. The economic and
financial condition of the country was
never so strong and Americas spirit
was never more aroused to the i'm
portance and necessity of going for
ward, resolutely and regardless of
sacrifice, to the Accomplishment Of
the great task to which God has cali
ed us"
The Federal Reserve System receiv-
ed Secretary McAdoos enthusiastic
praise for it's part in the war financ-
ing program. He pleaded for further
strengthening of the reserve system
by the entrance Of State banks and
trust companies.
Intelligent men all over the coun-
try" he said, "are beginning to real
ize that the financial power of the
United States should be strengthened
to the utmost limit if we are to meet
successfully the tremendous strain
upon our resources Occasioned by our
own part in the war and the credits
which it is essential that we should
extend to the foreign governments
cooperating with us in the war and if
we are to be equal to the demands,
in large measure, at least, Of world
leadership which will inevitably be
thrust upon us as result of this
war.
Financial strength can come alone
from consolidation Of the financial
powers Of the country under one
homogeneous system. 1t cannot be had
under the present arrangement, in
volvlng as it does 49 separate banking
systems or "save their money and lend
1T to the government"
1T is easy TO visualize the course
4 .