The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-28
Secretary McAdoo Urges Banks
and People to Prepare for
Campaign.
s5, OOO,OOO,OOO THE MARK
Treasury to Issue Biweekly
Blocks Of Certificates of
Indebtedness.
spsctaI pespatcA 20 THs spn.

suance OF $500, OoO. 900 or more of GER
uscates Of Indebtedness, payable May T.
1919, and bearing Az per cent interest
The subscription period will run from
Deceu,ber to December 10. The ma.
urty date of the issues indicates that
the hfth loan will be Aoated in April.
Heretofore the issues of loan certih-
oates matured about one week after the
han campaign closed. Treasury off,
Gals have indicated that public loans
hereafter will be subscribed during a
pariod OF not more than three weeks, the
length OF the Fourth Liberty Loan drive.
The Offering OF tax certificates dated
November and due March closed to-
night IS,
The anoint of the fifth loan is ex-
pected to be about $4,000. 900; 900.
The Treasury win Issue blocks Of
these certificates biweekly. amounting TO
not less than $500, OO0. 900 nor more than
3To,0O0, 900, for an indefinite time, Sec
rotary McAdoo explained in letter
sent to-day TO every bank and trust
company. He appealed for the banks
support of the Governments future
financial programme. Outlining this
programme the Secretary said:
-The expenditures Of the Government,
excluding transactions In the principal
Of the public debt during the fiscal year
beginning July 1, 1918, to and Including
November 23 1918, a period OF less tha q
five months amounted TO $1S.s18. e7e. 900.
Such expenditures during November to
November 20 amounted to s577l4s, GEO,
OF at the ratio of nearly two billion for
the month. :.+'.@
Secretary AIcAdoo's Appeal.
Secretary McAdoo's announcement
concerning the new certificates was in
the form Of letter sent to the bankers
Of the country as follows:
Il am sure that every patriotic banker
as well as every patriotic citizen In the
United States recognizes the imperative
duty Of financing the Government not
only to the conclusion OF the armistiae,
but until peace has been determined and
war bills have been paid UAtil the
peace treaty is signed, a splendid army
OF American heroes must be kept on duty
in France as a guaranty that the kind
Of peace for which America has fought
will be secured. The expense OF main
tanning our forces in Europe. both upon
land and upon sea. and other war bills
must be paid. They cannot be paid un-
less the Treasury continues TO have the
adequate support of the bankers sand
people OF America.
81 am sure that do not have to em-
phasize the appeal to the patriotism of
America. That patriotism Is not of the
incomplete or unfinished sort Ii will not
be content with half doing the glorious
work we have so auspiciously begun. 1t
viii be content only with a realization
Of all of the fruits OF our glorious VIC
tories and this cannot be accomplished
until the war has been financed and
peace-the handsome peace which Amer
Tea wishes to secure to the world-has
been escorted back to America as well
as TO the other nations OF the world.
1T Is therefore necessary that ra-
tional programme of Government finance
ing shall be executed. The policy adopted
in February last and again in June OF
laying before the banking institutions
Of the country as nearly as may be the
requirements OF the Government during
the period prisr TO the third and fourth
Liberty Loans met with very gratifying
response which provided adequately for
the necessities of the Government with
out strain or Inconvenience: and / am
writing now 10 inform you OF the pro-
Gramme for the ensuing five months so
Far as one can be made at this time. in
order that every bank and trust COM
pany IN the United States may have
adequate notice and be able to prepare
Itself to meet periodically the require
tnents OF the Government. / am send
ing similar letter to every bank and
trust company in the United States
November Expenses A2.0O0.e0O, 900
THE expenditures OF the Government,
excluding transactions In the principal
OF the public debt during this fiscal year.
beginning July 1. 1913. TO and Including
November 20. 1918, a period Of less than
five months. amounted to ;s.2lS,070,-
1886, according to the Treasury daily
statements Such expenditures during
the current month OF November to and
including November %. amounted to ST.
t17l4S,l4493, or at the rate of nearly
s2,OOOO00 900 for the month.
The proceeds of the Fourth Liberty
Loan In excess of the amount Of Treas
ury certificates issued In anticipation
OF that loan have been exhausted: and
the remaining instalment payments to
be made on subscriptions to the Fourth
Liberty Loan will but little more than
cover the Treasury certificates OF in
aeotedness issued in anticipation OF that
loan and as yet unpaid. Evidently
some time must pass before the read
!ls''nent from a war 10 a peace basis
* the daily cash outgo from the Treas
ury, Indeed the wise policy OF prompt
liquidation OF contracts might actually
result for a time in the accelerate
'or demands upon the Treasury; while
strengthening and making more liquid
He banking position of the country.
Uncertainties with respect to pend
ing revenue legislation make It impracti-
eable and inexpedIent to borrow further
az this time in anticipation Of taxes.
IN this period of readjustment II would
bs difficult b set IN motion any plan
tor the continuous sale OF Government
nonds. and II seems that the wise policy
VIII be TO plan for one more great popu-
'ar campaign In the spring for the sale
OF bonds, which should be OF short ma
turtles and meanwhile to provide for
we Governments necessities by the issue
OF Treasury certificates at fortnightly
intervals. The first issua ~ the certifi-
Gates viii be dated December s, 1918,
ana Will mature May 6, 1919, with in
crest at fh per cent, and similar is
sues II Is expected will be made on
ihursday OF every other week follow
ing December s.
Task Set for Banks.
TT Is not at this moment possible to
.oTecast the cash disbursements OF the
government during the period OF some
I'VE months which must intervene before
me proceeds of another great public loan
o'Ud leach the Treasury, nor therefore
10 announce at this time the minimum
. .io OF each fortnishtly issue OF Ger
10. to-