New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-12-06
McAdoo Reports Deficit OF
5 Billions Must Be Made
Up in Seven Months
2 Years of War Will
Cost 36 Billions
Secretary Of Treasury De-
nounces Liberty Bond
Buyers Who Sell

WASHINGTON, Dec. .. . Congress
was informed by Secretary McAdoo in
his annual report. submitted to-day
that S5,12S. 2O3,7 must be provided IN
addition TO funds from taxes and bond
issues already authorized in order 20
make estimated receipts for the fiscal
year ending June 30, 1918, equal dis
burscments. II 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 al $9s69,-
$3.50.
For the next fiscal year, ending June
so, 1919, the estimated excess Of dis
bursements over receipts is S7,627,-
g73,9SO.
Huge war expenses and loans 90
Americas allies at the rate Of half
billion dollars a month have made these
estimates many times larger than any
ever presented in a Secretary Of the
Tressury's annual report. OF the $l2,-
100000 estimated ordinary eXpendi-
lures for the year ending next June 30,
Sll.527 900. 900 is for war purposes, and
the proportion is about the same for
the fiscal year ending in 1919.
Mr.. McAdoo proceeds to cite the
enormous figures Of government re-
ccipts and expenditures, which are the
fruit Of war times.
Total estimated receipts for the cur
rent fiscal year are So, ESQ, 732, 800,
Il T.1a i'm a
last June 30 Of 81 066. 9S@ ,36l. makes
total Of So. 647716.161. Most OF the
receipts, or s., GS6.000,0O0, arc from sale
of bonds and war savings certihcHtes;
ordinary receipts aye S3,sS6OOOOOO,
largely from war taxes, and the Pana-
ma Canal income Is 100000.
Ordinary disbursements are csti-
mated at $l23162 95. 223; loans 20
Allies i'm the year at S6,1l5.O0G 600;
public debt disbursements at S32l, 900
600. and Panama Canal expenses, S25,-
593. 700. making total estimated dis
bursemeuts S18,715,9l9,9JG.
To Allow for Balance
In order 10 allow for a balance in
the general fund OF about s5OOOOOOOO
next June 80. Congress must authorize
raising of about S5,640,OO0.OO0 add
tional funds. This figure. together with
the S3.G66 OOO.O 600 Of authorized but un-
issued Liberty bonds, and S663,OOOOO0
estimated receipts from war savings,
make the 5000 ,OO00O0 which Mr Nc
Adoo believes Americans must loan the
government between now and June 80,
1918.
For the next fiscal year. ending June
80. 1919. the Secretary estimated re-
CENTS at S5I76.O00.OOO and disburse-
ments at s12,SO4, O34,44O. exclusive Of
Allied loans. This makes $7,62l ,OOO,-
600 excess Of disbursements. II the
present rate Of loans TO Allies is con-
tinued in the l918-19l9 fiscal year, So
600 600 600 additional would be re-
ouired. Estimated interest on bonds
90 be issued that year is S3o5,OOO'OOO,
and estimated expense Of floating the
bond issues SIS 100000.
Thus if the deficit is 20 be met by
bonds. Slt.O4O.0OO0 900 worth must be
foated between July l, 1918. and June
&C 1919. in addition 70 receipts from
war savings.
The outstanding fact. apparent from
these stupendous figures, is that the
cost Of the war to the American people
including Allied loans, for the two
years ended June 80, 1919, will be At
least $4,000, 100000.
Secretary McAdoo denounced pur-
chasers Of Liberty bonds who sell their
bonds when they do not imperatively
need money.
at is by actually lending money to