Montgomery County sentinel. [volume] (Rockville, Md.) 1855-1974, 1918-12-13
MD
McAdoo Gives War Cost In His
Farewell Report.

Inc financial history OF Americas part
in the war is set forth by Secretary Nc
Adoo in his annual report drafted before
his resignation, and made public by the
Treasurer. 1t is the history of how the
American people paid billions in taxes,
raised four great Liberty loans and created
tremendous pool of credit with which
the Treasury. through its many war agen-
cies. paid the bills for the army and navy,
the Shipping Board and other Government
departments, loaned billions to the Allies
and millions to war industries, helped sup
tided farmers over periods of financial
stringency.
THE payment into the Treasury Of vast
sums in war taxes and from bonds sales"
said Secretary McAdoo, land the trans
formation of our varied and complex eco
nomic life to the supreme task of winning
the war have been accomplished without
shock or financial disturbance. The credit
and business structure Of the nation re-
mains sound and strong. The results of
the four Liberty loans are tribute to the
patriotism Of the American people and to
the economic strength of the nation"
The report constitutes Secretary Nc
Adoo's final accounting of his stewardship
before retiring as the nations finance min
lister. Throughout the report, Mr.. McAdoo
refers repeatedly to the remarkable achieve
ments of Americas civilian population in
providing the money and materials for war
and acting as the "eager second line of
defense"
Commenting on the showing of financial
arrangements in great detail by the docu-
ment. Treasury librarians recalled that the
financial history of the civil war is buried
in a great stack of musty ledgers, and prob
ably never will be officially compiled
For the is months ending last June 80,
Secretary McAdoo estimated that the act
ual cost Of the war, with allowances for
the Governments ordinary expenses in
ordinary times, amounted to SIS, 222 ,000,-
900. Nearly half Of this, or $6,499,000.-
900, went into permanent investments, in
the form Of ships, shipyards. war vessels,
army camps, buildings and in loans to
Allies or to American war industries. OF
the years expense 31.8 per cent came
from taxation.
Looking forward, Secretary McAdoo found
great difficulty in forecasting expenditures
for the current fiscal year which ends
next June 80, on account of the sudden
coming of peace. Estimates which he pre-
sented are based on calculations of each
department in advance of revisions since
he signing of the armistice, and he does
not consider them reliable. With this ex-
iIlanation, Mr. McAdoo forecasts expendi-
lures for this year at 0.687 100000 for
Government purposes and $4,375, 100000
for loans to Allies and $2.540,000,0
for redemption of outstanding certificates
mated disbursements for the year were put
at $27.718,O 100000.
Against this estimate, which actual ex-
penses at the rate of little more than a
billion and half dollars month to date.
indicate is too high. Mr.. McAdoo calcu-
lated that the Government will receive
about, $5,000,000.000 before the end of
the fiscal year next June 80 from income
and profits taxes, $l,100.000.000 from
other taxes, $l90.0O0.O00 from customs
and $555,000,00O from miscellaneous
sources, including $70,000.000 from in
creased postage, making estimated receipts
from ordinary sources SO, 100000. In
addition, he figured roughly on a little
more than $5,000,0OO,0O0 from further
issues of Liberty bonds and $l,200,000,-
900 from war savings. These figures
added to receipts from Liberty loan bonds
already sold. make $14.16S. 100000 the
total of popular borrowings expected during
the year. On this basis total estimated
receipts would be $21, 022. 000, 900. or $6.-
SOS. 000,000less than tentative estimates
Of disbursements. Actual developments
are expected to change these calculations
greatly.
The United States public debt last June
80 was $l2,396, 100000. without taking
into consideration the $l,3l9, 100000 free
balance in the Treasury TIC partially offset
the debt The public debt has been in
creased since then by the Fourth Liberty
Loan of nearly $7,000,000,000 and
by Treasury certificates of Indebtedness
amounting to several hundred million
dollars.
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 November l. it is shown $244,-
036,500 worth Of bonds, face value. had
been purchased on the market for $234.-
$4,000, or at an average price of SO per
cent, and subsequently held by the Treas
ury. OF this sum. $172,445,000 were
Second Liberty Loan bonds, of both and
4 IA per cent issues $70,935. 900 were
Third Liberty Loan bonds, and $650,000
were First Liberty Loan converted bonds
The report also showed that the Wal
Finance Corporation, up TO October 81. had
made loans amounting to $67.7l6, 900. OF
which 500 1888 900 had been repaid, leav-
ing advances outstanding $37 ,652.000
Most of the loans, or $64, 739. 900, went d.
rectly to war industries. Public utilities
were the principal borrowers. while lum-
Der companies, coal operators, manufac-
turers and stock raisers rank next in
.,,,rnhar Of annlicatione