New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1918-10-18
PEACE TODAY WOULD
NOT end EXPENSES
MCAdoO Says Billions Will Still
Be Needed After War

Washington, Oct. 1S.--A stipend
Gus financing program faces the ma
ton and the American people whcth-
CT peace comes this week or next
year. For this reason Secretary of
the Treasury McAdoo declared yes
terday the Fourth Liberty Loan must
and will be fully subscribed by the
American people, though with only
two days to go it is $2,00O,000,0O
shy Of the total asked
Secretary McAdoo frankly admit
ted that peace talk at this time had
| had serious effect upon the loan be-
cause of a lack of full realization by
many people that the war expendi-
lures could not be stopped abruptly.
IF peace comes" the Secretary
said, "it will take billions to bring
peace to the shores of America. Sup
port for our army fighting upon the
other side cannot be stopped because
these boys have won victory for us.
There are 100000 men on the other
side now, and at best they cannot be
brought back faster than 100000 a
month.
This means that we would be con-
siderably more than half a year get
ing the boys home again if peace
came tomorrow, and in the mean
time we must feed, clothe and supply
them. And even so we have no right
to talk of peace now. No matter
how gratefully we might welcome it,
peace is not in sight.
Including the deficiency measure
already passed by the House, Con-
gress has appropriated $37,000,000,-
600 for the present year alone. We
have contracted for huge bills Uncle
Sam has always paid his bills and he
will pay them now. Our expenditures
cannot be abruptly stopped and the
people must know this and realize it
fully. We are already spending at
the rate of $24, 900, 100000 for the
year. This is $4,000, 900, 900 a month
of expenditures that Uncle Sam must
meet.
With respect to the SGT o.O00.-
900 appropriated by Congress it
might be said that the country cannot
spend so much, that production can
not be brought up to this point There
is no guarantee of this. however, as
production is still increasing. But
even SO the present loan not only
must be subscribed, but future loans.
The f1oatation of bonds will be neces-
sary even after peace comes to meet
the war bills contracted and to meet
the reconstruction program that will
be necessary.
In this connection the Secretary
pointed out that with another year of
war this nation probably will spend
$4,000, 900, 900 or more. Such an ex-
penditure will make an extensive pro-.
gram of readjustm ent and reconstruc-
! ton one of the first essentials. The
expenditures authorized by Congress
for the present year alone are equal
to those of Great Britain for the war
up to date.
Loan Must Be Subscribed.
The secretary, emphasizing that
the loan must be subscribed, declared
that he was perfectly willing to guar
antee personally that it would be talk
EN-. He made it plain that the time
of the campaign would not be extend
ed. The loan drive will end Saturday
night and the United States will face
the world with success or failure in
backing up it's army and the war
program outlined. g.
Failure it is pointed out, would
mean the spreading of information
among the German people to the eff
feet that the American people were
on the verge of revolution, that they
were not supporting the government
and were divided in the war, some
thing that would tremendously
strengthen the morale of Germany.
Another feature of the loan that
has escaped the casual observation of
many Americans the secretary
brought out is the fact that the treas
ury has found it necessary to meet
it's daily bills to borrow on short
term treasury certificates in advance
of this and other loans. Four and d
half billion dollars of the $4,000 000,-
600 asked for in the present loan has
been spent already
The money was received from the
banks on short term Treasury certifi-
Gates and in the expectation that the
indebtedness would be converted into
long time paper and distributed In
the country. If the government Is to
meet it's short term obligations and it's
war bills it must have the six billion
asked for.
The treasury has a daily balance to-
/ day of but little more than billion
dollars, enough to meet expenses for
Il little more than two weeks. The
four and a half billion dollars in
treasury certificates are to be taken
back in payments on Liberty bonds,
leaving a balance of only $4,000
600 which will not, with the present
balance carry up to the first of the
year without further financing.
Adjustment of the government eX-
penses after peace comes will be Il
slow process. Contracts that are run
ming cannot be cancelled. War plants
must get their money and must in
turn make wage and salary payments
to millions working for them. Even
| if Germany surrendered tomorrow
enormous war expenditures would
months and during all OF the time it
will take to bring back our army.
COUGHS UP BULLET