Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1918-12-04

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 re-
peatedly to the remarkable achieve
ments of Americas civilian popula-
'tion in providing the money and ma
terials for war, and acting as the
eager second 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 a great
stack of musty ledgers, and probably
never will be officially compiled.
For h 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 s13.222,O OO, 900. Nearly
half of this, or s6,499, O0O, 900, went
into permanent investments, in the
form of ships, shipyards, war vessels,
0i AAy Ia OuA1NAAl60 VII ~ lUdIlS 10
Allies or to American war industries.
OF the years expenses 31.6 per cent
came from taxation.
The civil establishment of the gov
eminent during the year spent ST.
507, 10000 while the wal department
spent $5,684.0OO,0O and the navy
$685. 900 900. For support of the
army alone the government paid out
s4.412.000,0 900. The naval expendi-
lures included the construction of new
vessels, machinery, armament, equip
ment and improvements at navy
yards. Total ordinary disbursements
for the year amounted to 1855, oo0,-
600 and ordinary receipts, excluding
money received from Liberty Loans,
amounted to $4,174, 000, 900. Loans to
Allies during the year amounted to
$4,739,0G0.0 900 additional.
Looking forward, Secretary McAdoo
found great difficulty in f%orecasting
expenditures for the current fiscal
year which ends next June 80, on ac-
count Of the sudden coming of peace.
Estimates which he presented are
based on calculations of each depart
ment in advance of r%evisions since the
signing of the armistice and he does
not consider them reliable. With this
explanation Mr.. McAdoo forecast ex-
p%enditures for this year at ~.$20,687,-
100000 for government purposes and
$4,375,O00,000 for loans to Allies and
s2,540,0 O0, 900 for redemption of put
standing certificates and other debt
cancellation. Total estimated dis
bursements for the year were put at
$27,718,000, 600.
Against this estimate which actual
expenses at the rate of a little more
than a billion and a half dollars a.
month to date, indicate is too high,
MI. McAdoo calculated hat the gov
eminent will receive about $780,
100000 before the end of the fiscal
year next June 80, from income and
profits taxes, $1.1O0, 900, 0 from
other taxes, $3.50, 600, 900 from Gus
toms and $685., 000. 900 from miscel-
laneous sources. including 10000, 900
from increased postage, making esti-
mated receipts from ordinary sources.
roughly on a little more than $5,O00,-
100000 from further issues of Liberty
bonds and $1,000, 600, 900 from wal
savings. These figures added to re-
ceipts from Liberty bonds already
sold make $14.16S, 900 900 the total of
popular borrowings expected during
the year. On this basis total esti-
mated receipts would be $21,O22,OOO,-
900 or $685., 600, 900 less than tenta-
tive estimates of disbursements.
Actual developments are expected to
change these calculations greatly.
The United States public debt last
June 80 was s12,396.0 900, 900, without
taking into consideration the $780,
100000 free balance in the treasury
to partially offset the debt. The pub
lie debt has been increased since then
by the fourth Liberty Loan Of nearly
$4,000, 600, 900 and by treasury GER
tificates of Indebtedness amounting to
several hundred million dollars
The report disclosed for the first
time the activities of the t%reasury's
sinking fund to buy up Liberty bonds
in an effort to keep their price from
far below par. Up to Novem-
ber !, it is shown, $244,036,5oo worth
of bonds, face value, had been pur-
chased on the open market for $234,-
10000, or at an average price of
about sc e cent, and subsequently
held by the treasury. OF this sum.
$172,445,0 900 were second Liberty
Loan bonds. of both 4, and 4 IA per
cent issues; 5000 900 were third
Liberty bonds, n $65, 900 900 were
Liberty Loan converted bonds.
The report also showed that the al
had made loans amounting to $67.-
$4,000, of which $29,s63,0 900. had
been repaid, leaving advances out
$37,852,O00 Most Of the
loans. or $64.739.000. went directly to
war industries. Public utilities were
the principal borrowers, while lumber
coal operators, manufac-I
turers and stock raisers rank next in
number of applications.
The magnitude Of the work of the
capital issues committee was indicated
by the report that since its organiza-
ton last May II it has examined
nearly 1000 applications from pros
pective issuers of securities, 'aggregat-
ing about $2,350,000, 900.
About 20 per cent of these appli-
cations were disapproved." said the
report, land these were mostly of a
involving new extensions
would not be contributory to
the winning Of the war. The preven-
ton of approximately $450,000,0 900 Of
issues which could be
was an important contri-
to the conservation Of the ma
TONS resources"
MI. McAdoo took the occasion to
again the Importance Of
enactment Of the revenue
bill nov pending in congress.
Unless the asu becomes a law
in the near future" he said, ut will
not be physically possible for the
treasury to frame the necessary regu-
and to print and distribute the
forms before the returns |
and taxes will be due. The enforce
ment OF the law will necessarily be
imperilled.