Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1918-12-05
NJ ADO0 REVIEWS
FINANCING THE
WAR BY AMERICA
Secretary Throughout Report
Praises the Remarkable
Achievements of Civilian
Population in Beating Kaiser

Washington, Dec. 4.--The financial
history of Americas part in the war
is set forth bv Secretary McAdoo 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
through its many war agencies paid
the bills of the army and navy, the
shipping board and other government
departments, loaned billions to the
allies and millions to war industries
helped support the families of SOL
diers 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, and
the transformation of our varied and
complex economic life to the supreme
task of winning the war have been ac-
complished without shock or financial
disturbance. The credit and business
structure of the nation remains sound
and strong. The results of the four
Liberty loans are a tribute to the
patriotism of the American people
and to the economic strength of the
nation"
The report constitutes Secretary
McAdoo's final accounting of his
stewardship before retiring as the
nations finance minister. Through
out 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 Sec
ond line of defense"
Commenting on the showing of
financial arrangements in great detail
by the document, treasury librarians
recalled 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 the actual cost of the war, with
allowances for the governments ordi-
nary expenses in ordinary times,
to S1S,222, 100000. Nearly
half of this, or $6,499. 900, 600, went
into permanent investments, in the
form of ships, shipyards. war vessels
army camps. buildings and in loans
to allies or to American war indus
tries. OF the years expenses 31.6 per
cent came from taxation.
The civil establishment of the gov
eminent during the year spent ST.
507 600 000, while the war department
spent $5,6S4, 100000 and the navy ST.
36S, 100000 For support of the army
alone the government paid out $4,-
412,000.000. The naval expenditures
included the construction of new ves-
sells, machinery. armament, equip
ment and improvements at navy
yards. Total ordinary disbursements
for the year amounted to $S,966,000,-
900 and ordinary receipts, excluding
money received from Liberty loans.
to s4.174.000.o0o. Loans
to allies during the year amounted to
$4,739. 900 additional.
Looking forward Secretary McAdoo
found great difficulty in forecasting
for the current fiscal
year which ends next June 80, or ac-
count of the sudden coming of peace.
Estimates which he presented are
based on calculations of each depart
ment in advance of revisions since the
signing of the armistice and he does
not consider them reliable. With this
penditures for this year at $20,68T,-
ABS, 000, 900 for loans to allies and
81, $40, 000,0 900 for redemption of out
standing certificates and other debt
Total estimated dis
for tho year were put at
$27,71S,0 100000
Against this estimate which actual
expenses at the rate of a little more
than billion and a. half dollars a
month to date, indicate is too high.
Mr.. McAdoo calculated that the gov
eminent will receive about $1,000
100000 before the end of the fiscal
year next June 30. from income and
profits taxes, $1,100,000,000 from
other taxes, 100000, 900 from Gus
toms and 1866. 100000 from miscel-
laneous sources, including $I0,000,000
from increased postage, making esti-
mated receipts from ordinary sources
Sc, SAG, 900 ,000. In addition, he fig
ured roughly on little more than
ST, 600 ,000, 200 from further issues of
Liberty bonds and $1,000, 900, 600 from
war savings. These figures added to
receipts from Liberty loan bonds al
ready sold make sl4,168, 100000 the
total of popular borrowings expected
during the year. On this basis total
estimated receipts would be $2f,022,-
900, 900 or $685., 100000 less than
tentative estimates of disbursements.
Actual developments are expected to
charge these calculations greatly.
The United States public debt last
June 80 was $12,396,0 100000, without
taking into consideration the $l,319,-
100000 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 $7,000,000,000 and by treasury
certificates of indebtedness amounting
to several hundred million dollars. 4
The report disclosed for the first
time the activities of the treasEry's
sinking fund to buy up Liberty Bonds
In an effort to keep their price from
falling far below par Up to Novem-
Der l., it is shown, $244,036,50 worth
of bonds, face value, had been pur-
chased on the open market for s234,
100000, or at an average price of
about s6 per cent and subsequently
held by the treasury. OF this sum,
$172, $4,000 were second Liberty
cent issues; S70.935.O00 were third
Liberty Loan bonds, and $4,000
were first Liberty Loan converted
bonds.
The report showed that the War
Finance Corporation, up to october
81, had made loans amounting to SGT,
$4,000. of which $2s,S63,000 had
beep repaid, leaving advances out
standing $S7,S52,000. Most of the
loans. or s64.739.000. went directly to
war industries. Public utilities were
the principal borrowers. white lum-
Der companies. coal operators, manu-
facturers and stock raisers rank next
in number of applicall ems.
TIE magnitude OF the work of the
Capital Issues Committee was indicat-