Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-12-04
III. S. WAR FINANCES
/ REVIEWED BY M'ADOO
Second Line of Defense Eager to Aid'' Retiring Sec
retmy Reports-HaIt of Years Expense Permanent
Observation-Disclosures Present Reuenue Bill

/ 900. OF which s29,s63,00o had been re-
paid. leaving advances outstanding s37,-
$4,000. Most of the loans, or $6t,73e,-
000 went directly to war industries
Public utilities were the principal bor-
rowers, while lumber companies, coal
operators, manufacturers and stock
raisers ranked next in number OF APP
plications.
The magnitude of. the work OF the
capital issues committee was indicated
by the report that, since its organisation
last May II, It has examined nearly
1000 applications from prospective is-
suers OF securities, aggrcgating about
$3.50, 900, ,o0OS
About 20 per cent of these applica-
tions were disapproved," said the re-
port, land these were mostly Of a char
acter involving new extensions which
would not be contributory to the Win
ming of the war. The prevention OF ap-
proximately $3.50, 100000 Of unnecessary
issues. which could be postponed, was an
important contribution to the conserva-
tion of the nations resources"
Backs Up Revenue Bill
Mr.. McAdoo took the occasion to EN-
phasize again tho Importance Of hasten
ing enactment of the revenue bill now
pending in Congress.
"Unless the measure becomes law In
the near future" he said, at will not be
physically possible for the Treasury to
frame the necessary regulations and to
print and distribute the necessary forms
before the returns and taxes will be due.
The enforcement OF the law will neces-
sarily be imperiled.
THE wisdom Of such action Is empha-
sized by every sound economic consider
alton and wise tax policy. 1t is desira-
BILE and necessary from the viewpoint
of the Treasury in condensing the period
Of readjustment, and from the viewpoint
Of labor and industry generally"
Mr.. McAdoo reviewed the financial
practices of the year, including the float
ing of short-term certificates of indebt-
edness in advance of every Liberty Loan
to prevent the disturbing of the money
market by the loans and to obtain the
money needed by the Treasury In ad-
vance of loan receipts. He said the
war savings movement had resulted not
only in gathering in $S34,000,000 for
war purposes up to November l, but it
had helped to teach the American people
thrift and economy.
Wants W. s. s. Continued
This wartime experiment has been
So successful" he commented, that II
Is hoped war savings certificates will
become a continuing feature OF the ma
tion's financing even after the restora-
ton of peace"
The report explained at length that
q feature of the Treasury's policy in dis
tributirg the $S.171,000,000 credits to
Allies during the year has been to
stabilize foreign exchange rates and
bring the dollar nearer par in European
countries, but did not mention the spe-
cifc acts undertaken by the Treasury to
accomplish this. In exchange for cred
It's, France gave the United States
credit In France Of S631,275.000 for
army purchases. Great Britain estab-
lished similar credits of S116,633,000
and Italy s5,2S4,000.
Turning to the enormous task Of COL
lecting s3.694,619,00O in taxes during
the last fiscal year. or more than four
times the record collection of the year
previous, the Secretary emphasized that
this had been accomplished largely
through the cooperation of business in
terests and individual taxpayers.
During the fiscal year 1915" said
the report, "the Bureau Of Internal Rev.
enue has been able to collect the largest
tax ever collected by any country, an
amount which represents larger
proportion OF the nations war budget
than any other belligerent engaged In
the present war has been able to defray
from tax revenues"
From would-be tax dodgers the rev.
enue bureau now expected to collect sew
eral hundred million dollars additional
taxes.
Concerning the tremendous part played
by the Federal Reserve system during
the war, Secretary McAdoo had this to
say:
THE Federal Reserve system has per-