New-York tribune., 1918-12-05
u. S. to Spend
27 Billions i'm
The Next Year
McAdoo's Final Annual Re-
port Says War Cost 13
Billions IN IS Months
Big Saving Is Expected
RevisiOns Due to Peace Are
Sure to Reduce the Sum
to Be Needed in 1920

WASHINGTON, Dec. 4.-The finan-
cial history Of Americas part in the
war is set forth by Secretary McAdoo
in his annual report, drafted before
his resignation and madt public to-
day by the Treasury. 1t is the his
tory of how the American people paid
billions in taxes, raised four great
Liberty loans and created a tremen-
dous pool Of credit, with which the
Treasury, through its many war agen-
cies, paid the bills of the army and
navy, the Shipping Board and the
other government departments, loaned
billions to the Allies and millions to
war industries, helped support the
families of soldiers and sailors and
tided farmers over periods Of financial
stringency.
"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
complex economic life to the supreme
task of winning the war have been
ACCOMPLISHED without shock or fnan-
cial disturbance. The credit and busl-
ness structure of the nation remains
sound and strong. The results OF the
four Liberty loans are a tribute to
the patriotism of the American peo-
, pie and to the economic strength or
| the nation.'
McAdoo's Final Report
McAdoo's final accounting of his stew
ardship before retiring as the nations
! finance minister. Throughout the re-
port Mr.. McAdoo refers repeatedly to
the remarkable achievements of Amer
icas civilian population in providing
tn money and materials for war and
acting as the "eager second line OF
defence"
Commenting on the showing Of tinan-
cial arrangements IN great dctall by
the document. Treasury librarians re-
called that the financial history Of the
Civil War is buried in great stack
Of musty ledgers, and probably never
will be officially compiled.
For the fifteen months ending last
June 80 Secretary McAdoo estimated
that tn eactual cost Of the war, with
allowances for the governments ordl-
nary expenses in ordinary times,
amounted 10 SAA,UUO,VUV- Ncdll
half of this, or $6.499 100000, went in
to permanent investments in the form
of ships. shipvards. war vessels, army
camps, buildings, and in loans to Allies
or to American war industries. Of the
years expenses 31.6 per cent came from
taxation.
The civil establishment of the gov
crnment during the year spent $1,507,-
100000, while the War Department
spent s5.6S4 100000 and the navy ST.
1853 900, 900. For support of the army
alone the government paid out s4,412,-
1000. The naval expenditures in
clnded the construction of new vessels.
machinery, armament, equipment and
improvements at navy yards. Total
ordinary disbursements for the year
amounted to $S,966 900 900, and ord-
nary receipts, excluding money received
from Liberty loans, amounted to S4,-
174O0O 900. Loans to Allies during
the year amounted to s4,739 100000 ad-
ditional.
Hard to Forecast Expenditures
Looking forward, Secretary McAdoo
, found great difficulty in forecasting ex-
!, penditures for the current fiscal year
which ends next June 80. on account Of
the sudden coming of peace. Estimates
which he presented are based on cal
= culations of each department in ad-
l vance of revisions since the signing OF
. the armistice and he does not consde,
: them reliable. With this explanation
Mr.. McAdoo forecast expenditures foi
this year at $40, ,6S7 900 900 for govern
ment purposes and s4,375,OOO,O 900 fol
! loans to Allies, and $2,5400 900 600 fol
d redemption of outstanding certificates
s and other debt cancellation. Total est
: mated disbursements for the year were
!. put at S27 71S 900 O0O
5, AGAINST this estimate which actua
q expenses at the rate of a little more
d that billion and half dollars
t '9N"th to date indicate is too high Mr.
g McAdoo calculated that the govern
before the end of the fiscal year mex
@ June 30 from income and profits taxes
" 81 100, 100000 from other taxes, $190,
= 900 600 from customs and S555 00O00
J. from miscellaneous sources. including
n S70.O0O,0OO from increased postage
It making estimated receipts from ordi
4 nary sources S6.S46 600 600. In addi
IS tion,he figured roughly on little NOR
than S5 900 100000 from further issue
a of Liberty bonds and 100000 0O
~ from war savings. These figures add
- cd to receints from Libortv roa'
~ bonds already sod make S14 1853 600
II 600 the total of popular borrowings *
= pected during the year. On this basi
= total estimated receipts would be S2l
,f 022 600 600 or $6.695 900 900 less tha
- tentative estimates of disbursement.
20 Actual developments are expected t
~, change these calculations greatly.
~ -. The United States public debt las
70 June was $12.396,000 600. without tax
:, ~ ing into cons !deraton the $4,000
:, 600 free balance in the Treasury t
II, partially Offset the debt. The publ
NJ N debt has been increased since then b
81 the fourth Liberty Loan of nearly ST
% % 0oo.000,000 and by Treasury certif
;" Gates of indebtedness, amounting t
H. several hundred million dollars.
ac The report disclosed for the frs
p p time the activities of the Treasury
~ sinking fund to buy up Liberty bond
e IN an effort to keep their price fror
&c falling far below par. Up to Novem
" Der |, 1T IS shown, $244 ,036. 800 worth o
/ bonds. face value had been purchase
on the open market for 1924 $1,000 0
70 at an average price of about 90 pe
, cent, and subsequently held by tn
n Treasury. Of this sum. S172i45.
~ We're second Liberty loan bonds. c
% both and Az per cent issues: $40
~ 935,O00 were third Liberty loan bond
ID and S65000 600 were first Liberty loa
e. converted bonds
g The report also showed that the Wa
re s FINANCE Corporation Up to October 8
"a had made loans amo1nting to S67.71 6
~ 600, OF which S29 .662 900 had been r,