Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1917-12-05
MUST PROVIDE
IHuGEAMOuNT.
CONDUCT
C0U
IN 1918

WASHINGTON, Dee. 5.-Congress was
Informed by Secretary McAdoo in his
annual report submitted today that So,
12S,203.793 must be provided in addition
to funds from taxes and bond issues al
ready authorized in order to make esti-
mated receipts for the fiscal year ending
June 30. 1918 equal disbursements. II
this deficit i met by "A new issue of bonds,
the total amount of securities To be issued
in the next seven months is estimated nj
5000, ,433, $50.
Huge war expenses and loans to Amcri-
cas- allies at the rate of half billion dollars
u month have made these estimates many
times larger than any ever presented in
Secretary of the Treasury's annual re-
port. Of the $12,316,0OO,0O estimated
ordinary expenditures for the year ending
next June 30, $1l ,527 ,00O,OO is for war
purposes, and the proportion l. about the
same for the fiscal year ending in 1919.
So far the nation has borne the financial
burdens of the war well, says Secretary
McAdoo, owing to healthy business con
ditions, and the valuable aid of the estab-
lshed Federal Reserve Systenr. IN the
future, however. increasingly greater
habits of economy must be developed by
individuals and business Institutions, the
Secretary declares. and business a.
usual cannot be adopted a the guiding
principle of war. People must save and
invest in government securities to avoid
postponing victory.
With this admonition, Mr. McAdoo pro-
ceeds to cite the enormous figures of
government receipts and expenditures
which are the fruit of war times.
Total estimated receipts for the current
fiscal year are $l2,56O, 732 800. which,
with a balance In the treasury last June 30
of $l,066, 1888, 1861, makes total o. ST.
647716,16l. Most of the receipts, or So
6S6,0O0,000, are from safe of bonds and
war savings certificates: ordinary re-
ceipts are $3.50. .O00, ,0OJ. largely from war
taxos: and the naaama ,snal in,p.n. i
$7,000,O0O.
Ordinary disbursements are estimated
at $l2,3l6, ,296. 30. .223: loans TO allies in
the year at So, 6,ll5 900: public debt dis
bursements at 1921 600, 900; and Panama
Canal expenses, 2j,593,000 making total
estimated disbursements $lS,775,9l9,955
In order to allow for a balance in the
general fund of about $500, 100000 next
June 30, Congress must authorize raising
of about $5,640, 0,000,000 additional funds
This figure, together with the. -, Get. .000.-
900 of authorized but uni>sued Liberty
Bonds. and S663. 200. 900 estimated re-
ceipts from war savings. make the -. .969,-
0O0,00 which Mr.. McAdoo believes
Americans must loan the government be
tween now and June 80, 1918.
For the next fiscal year. ending June 30,
1919, the Secretary estimated receipts ~
$5, .0O0000, and Disbursements ut
$12,S04 1884, 40, exclusive of allied loans.
This makes a S7.627o0O.oOo excc.,s of dis
bursements. If the present rate Of loans 10
allies is continued in the l9l5-19 fiscal
year, $6,000,000, 900 additional would be-
required. Estimated interest on bonds io
be issued that year j. $685., 900. 900. and
estimated expense of floating the bond
issues $2s,OO0,OO0
Thus if the deficit j. to be met by bond,
$14,04O, 100000 worth must he floaicd be-
tween July /. 1918 and June 30, 1919. in
addition to receipts from war savings
''WhiIe these figures represent the ~itua-
ton as il appears today" the Secretar,
saws, ..it should he borne in mind that tn,
exigencies of the future may caus,
changes, particularly with regard to The
estimated for the War and Navy Depart.
ments." The estimates on which tn,
Secretary bases his figures are made b,
the government departments.