Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-12-06
.M'AD0O TELLS CONGRESS
He NEEDS s5,128,2O8,7ss
secretary OF Treasury Says Sum
Must Be Provided In Addition
to Authorized Taxes.
NEW LIBERTY LOAN ISSUES
Treat Portion OF Amount to BE PRO.
ridcd by American People Before
June 30, 1O10-McAdoo Urges
BOND Purchasers to Hold Them.

Bond Purchasers to Hold Them.
WASHINGTON, December Coon
(, srcss was informed by Secretary Nc
Adoo, In his annual report, submitted
to-day that s6.l2S,20S.793 must be pro-
Nided In addition to funds from taxes
ana bond Issues already authorized. in
order TO make estimated receipts for
INC hScal year ending juno 80. 1918,
equal disbursements. II this deficit Is
met by now issue Of bonds. the total
amount of securities to be issued in
tho next seven months Is estimated at
5000. 1850.
For tho next fiscal year. ending June
30. 1919. the estimated excess of dis
burscmcnts over receipts is +7.G27.-
e1S.8So.
Huge war expenses and loans to
Americas allies ut the rate o: $780,
100000 a month have mado these c.
Inmates many times larger than any
ever presented In q Secretary OF the
Treasury's annual report. OF tho $l2,-
3ls.ooo.ooo estimated ordinary eXpcndi-
lures for the year ending next June
so, Sl1.527,ooo.0o0 is for war purposes,
and the proportion is about the same
Tor the fiscal year ending in 1916.
So far the nation has borne the A.
nancial burdens of the war we'll, says
Secretary McAdoo. owing to healthy
business conditions. and the Yaiuablc
aid Of the established Federal reserve
system. In the future. however, in
crcnsinsly create habits OF economy
must be developed by individuals and
business institutions. the secretary de-
ciareS. and business AS usual cannot
DO adopted as the guiding principle Of
tho war. People must save and invest
In government securities to avoid post
ponins victory.
With this admontion. Mr.. McAdoo
proceeds to cito the enormous figures
OF government receipts and cxpcndi-
lures which arc the fruit Of war
times.
GREATER FAR. OF RECEIPTS
ARR; FROM LIBERTY LOAN SALES
Total estimated receipts for the cur
rent nscal year arc sl2,5s0. 732Soo,
which. with II balance in tho Treasury
last juno 80 OF sl.o6G.oS3.3sI. makes a
total OF s13.6i7.7l6.l6l. Most OF the
receipts. or sS.s36. geo, 600. arc from sale
" bonds and war savings certificates:
ordinary receipts are 1856 900 600.
ma Canal income is 100000.
Ordinary Disbursements are c.tirnat-
ed At slc3is..a5.2o3: loans to allies in
tho year at 100000; public debt
disbursements at Sci .ooo, 900. nd Fan
anna canal expenses. S2s.5c3. 600: maxi
ing total eliminated disbursements SlE,-
80. oia,sJ5.
In order To allow for balance in
tl,. r.,l f,,,t 81 ..I,o nm
. ncNt June 80, Congress must authorize
rIisins OF bout .5.6io.90Oo0 addi-
,iot,ai funds. This figure. together
with tho .asss0oo. 900 of authorized
hut unissued Liberty bonds. and $685.
oso.nno estimated receipts from war
savings. mako the s?.o5a.ooo.ooo which
MIR. Mc.Adoo believes Americans mus,
loan the government between now and
June so 1918.
For the next fiscal year. ending June
so, 1913, the secretary estimated re-
ccipts at s5,l76.ooo.o0o. and dsbursc-
mcnts at Sl2.604,o34.44o. exclusive OF
allied loans. This makes s7.s27. o00.-
coo excess of disbursements. II the
present rate OF loans to allies is con-
tinued In the lolS-lo fiscal year. $780,
100000 additional would be required.
sued that year is $685. 600 900. and esti-
mated expense of floating the bond
issues. S2S.0o0.0oo.
Thus. IL the deficit Is 10 be met by
bonds. s14,o4o.ooO.ooO worth must be
noatcd between July !. 1915. and juno
so. 1919. in addition TO receipts from
war savings.
EXIGESCIES OF FUTURE
MAY CAUSE MANY CHANGES
While these figures represent the
situation as ii appears to-day" the
secretary says. III should be borne in
mind that the cXigcncies of the future
may cause changes. partic Llariy with
regard to the estimates for the War
and Navy Departments" The esti-
mates on which the secretary bases his
figures are made by the various gov
crnmcnt departments.
Tho outstanding fact apparent from
these stupendous figures is that the
cost OF the war to the American peo-
pie. including allied loans. for the two
years ending juno so, 1919, will be at
least $4,000, 100000.
Secretary McAdoo denounced pur-
chascrs OF Liberty bonds who sell their
bonds when they do not imperatively
need money.
1T is by actually lending money to
The government. and not by merely
promising it and shifting the load to
scmo ono else" he said, that the citi-
zen really helps in this great time"
/, Iio added, however, that he did not
mean to discourage legitimate trad
i.S in government 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