Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-12-04
Retiring Treasury Head
Reviews Moneys Part
in Defeating Huns.
WHERE THE PEOPLES
LOANS WERE USED
Cost Of War to America Up to Last
June Figured at 1922, 900, 900
Public Debt Now 10 Almost Equal 10
That Sum-Govsrnment Bought Ii.
berty Bonds in Order to Keep Prices
stabie-Loan Conversions.

Washington, Dec. 4.-The financial
history Of Americas part in the war
is set forth by Secretary AlcAdoo In
his annual report drafted before his
resignation, and made public today by
the treasury. 1t is the history Of how
the American people paid billions in
taxes. raised four great liberty loans
and created a tremendous pool of credit
with which the treasury. thru it's many
war agencies paid the bills of the army
and navy. the shipping board and othe:'
government departments, loaned bill
lions to the allies and millions to war
industries, helped support the families
of soldiers and sailors and tided farm
ers over periods of financial strin-
gency.
! 1.-The payment into the treasury of
vast sums in war taxes and from bond
sales" said Secretary McAdoo, land the
TRANSFORMATION of our varied and COM
plex economic life to the supreme task
of winning the war have been accom-
plished without shock or financial dis
turbance. The credit and business
structure of the nation remains sound
and strong. The results of the four
liberty iosin.; ar - tribute 90 the patIi-
otism of the American people and to
the economic strength of the nation"
The report constitutes Secretary Nc
lAdoos final accounting of his steward
ship before retiring as the nations
finance minister. Thruout the report.
Mr. ,McAdoo refers repeatedly to the
remarkable achievements of Americas
civilian population in providing the
money and materials for war and act
ling as the "eager second line Of de-
i fense."
Whore the Money Went.
For the fifteen months ending last
June 30 Secretary McAdoo estimated
that the actual cost of the war. with
allowances for the governments ordi-
nary expenses in ordinary times.
amounted to $1s ,222. 900, 600. Nearly half
of this. or $6.499 100000, went into per-
manent investments, in the form or
ships, shipyardS war vessels, army
camps buildings, and in loans to allies
! or to American war industries. or the
years expenses 31.G per cent came from
taxation. tf
The civil establishment of the gov.
ernment during the year spent $1,5O7,-
900. 900, while the war department spent
$5,e84.OO0,OOO and the navy $1,36S, OO0.-
600. For support of the army alone the
government paid out s4,412,0o0. 900. The
naval expenditures included the con-
struction of new vessels, machinery,
o..
ments at navy yards. Total ordinary
disbursements for the year amounted
to 81, ,9s6 0o0, 600 and ordinary RECEIPTS,
excluding money received from liberty
loans. amounted to $4,174.00O 900. Loans
to allies during the year amounted to
$4,739, 100000 additional.
| Looking forward, Secretary McAdoo
found great difficulty in forecasting ex-
;penditures for the current fiscal year
which ends next June &c. on account-of
! the sudden coming Of peace. Estimates
which he presented are based on calcu-
jlations of each department in advance
of revisons since the signing OF the
armistice and he does not consider them
reliable. With. this explanation Mr..
McAdoo forecast expenditures for this
tyear at $2O,6S7 100000 for government
purposes and $4,375, 100000 for loans to
allies and $3.50. Ooo,O for redemption
/ of outstanding certificates and other
idebt cancellation. Total estimated dis
Ibursements for the year were put at
s27, ,71s. 900, 900. r
public Debt 81, $3.50, ,ooo, 900.
The United States public debt last
June 80 was $12,3s6, 100000. without
taking into consideration the S1,sl9,-
900 900 free balance In the treasury TO
partially offset the debt. The public
debt has been increased since then by
the Fourth liberty loan OF nearly ~
| O00, 900, 600 and by treasury certificates
Of indebtedness amounting to several
hundred million dollars. M
The report disclosed for the first
time the activities Of the treasury's
sinking fund to buy up liberty bonds
in an effort to keep their price from
falling far below par.' Up to Novem-,
ber /, it Is shown. 3244,O36,500 worth
Of bonds, face value, had beei pur-
| chased on the open market for $234,r
10000. or at an average price OF abouI
| 96 per cent, and subsequently held by
the treasury. OF this sum- $172,44b,-
| 900 were second liberty loan bonds. OF
both and ~ per cent issues; S7o,-
| $4,000 were third liberty loan bonds.
and ss5.s0O,o0o were first liberty loan
| converted bonds @
The report also showed that. the war
finance corporation, up to Oct. 81. had
made loans amounting to $67,7l6,00D,
Of which $29,s63.000 had been repaid,
leaving advances outstanding 337 ,S52.-
o00.} Most Of the loans, or S64,7Ss, 900,
went directly to war industries. Pub
lie utilities were the principal bor-
rowers, while lumber companies coal
operators, manufacturers and stock
raisers rank next In number Of appli-
cations.
| The magnitude Of the work oS the
capital issues committee was indicated
! by the report that since its organtsaA