New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1917-12-05
SECRETARY M'AD00
MAKES HIS REPORT
Over Five Billion Dollars Needed
Above Tax and Bond Issues
HALF BILLION A MONTH

HALF blLLlUN A MVNIh
Dcnounccs Those Who Sell Liberty
Bonds When They Do Not Need the
NIoney-Hopes to Raise Money by
Bonds This Year.
Washington, Dec. 5.-Congress was
informed by Secretary McAdoo. in his
annual report submitted today, that
$5,12S,2OS,793 must be provided in
addition to funds from taxes and bond
issues already authorized in order to
make estimated receipts for the fiscal
year ending June 80, 1918, equal dis
bursements. If this deficit is met by
a new issue Of bonds, the total amount
of securities to be issued in the next
seven months is estimated at $9,96S,-
4S3,S5O'
For the next fiscal year, ending
June 80, 1919, the estimated excess of
disbursements over receipts is $7,627.-
978,98O.
Huge war expenses and loans to
Americas allies at the rate OF a half
Inmates many times larger than any
ever presented in secretary of the
treasury's annual report. OF the
$12,316, 100000 estimated ordinary eN-
penditures for the year ending next
June 80, s11,627. 100000 is for war
purposes, and the proportion is about
the same for the fiscal year ending in
1919.
So far the nation has borne the f.
nancial burdens Of the war well, says
Secretary McAdoo, owing toe healthy
business conditions. and the valuable
aid Of the established Federal Reserve
system. In the future, however, in
creasingly greater habits of economy
must be developed by individuals and
business institutions, the secretary de-
clares, and business as usual cannot
be adopted as the guiding principle of
the war. People must save and invest
in government securities to avoid
postponing victory.
Receipts and Expenditures.
With this admonition, Mr.. McAdoo
proceeds to cite the enormous fig
ures of government receipts and ex-
penditures which are the fruit OF war
times.
Total estimated receipts for the cur
rent fiscal year are $12,58O, 1872, 800,
which, With a balance in the treasury
last Juno 80 Of $1o66,9 ,361. makes
total of s13,647, ,716,161. Most Of
the receipts. or $S,6S6, 100000, GRO
from the sale Of bonds and war saw
ings certificates; ordinary receipts are
$3,886, 100000 largely from war taxes;
and the Panama Canal income is
$7,OOO,OO0.
Ordinary disbursements are esti-
mated at $12.316,295,22 loans to al
lies in the year at Sc, II 5. 100000; pub
lie debt disbursements at $321.00O,-
900; and Panama Canal expenses,
$29,593, 900; making total estimated
disbursements, 18,775.919,955.
In order to allow for a balance in
the general fund of about 100000 600
next June 80. Congress must author
ize raising about $5,64O,oO 900 addi-
tional funds. This figure, together
with the $3,666, 100000 of authorized
but unissued Liberty Bonds. and
663,O00,OOO estimated receipts from
which Mr.. McAdoo believes Americans
must loan the government between
now and June 80, 1918.
For the next fiscal year, ending
June 80, 1919, the secretary esti-
mated receipts at $5,176, 100000, and
disbursements at $12,SO4. .034, ,440, e1-
elusive of allied loans. This makes
a $7,627, 100000 excess Of disburse-
ments. If the present rate of loans to
! allies is continued in the 1918-19 fiscal
year, $4,000 100000 additional would
be required. Estimated interest or
! bonds to be issued that year is 1885,.
100000, and estimated expense Of
floating the bond issued $28,000,000
Thus, if the deficit Is to be met by
bonds, S14,O4O, 100000 worth must b.
floated between July /, 1918, ant
! June 80, 1919. in addition to receipts
! from war savings.
Estimates May Be Revised.
while these figures represent th'
situation as it appears today" tn
secretary says. 1T should be borne i,
mind that the exigncies of the futur
may cause changes, particularly will
regard to the estimates for War an
Navy departments"
The estimates on which the secre
tary bases his figures are made by tn
various government departments.
The outstanding fact apparent from
these stupendous figures is that TIL
cost of the war to the American peo
ple, including allied loans, for the tw
years ending June 80, 1919. will b
at least, $4,000. 100000.
To the great task facing the coun
try, Secretary McAdoo calls the peopl
with these words:
What is of superlative Importance
in the readjustment that must tax
place is that our people shall be i'm
pressed with the necessity of econo
mizng in the consumption of article
Of clothing. food and fuel. and o
every other thing which constitute
a drain upon the available supplies
materials. and resources of the couli
try. Everything wasted now is litt!
short of criminal.
! so far. as 7 have been able to oh
serve. the American people are no