The Bridgeport times and evening farmer., 1918-12-07
MCAOOO'S REPORT GIVES
 HISTORY OF WAR FINANCE

us annual report uTdlCeu DelOIS HIS | resignation, and made public today by 1 the Treasury. It 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 it's 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 soldiers and sailors and tided farmers over pe- riods of financial stringency.
 "The payment into the Treasury of vast sums in war taxes ana 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 accomplished without shock or finan- cial disturbance. The credit and bus iness 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 na- tion."
 American Loyalty.
 The report constitutes Secretary McAdoo's final accounting of his stewardship before retiring as the na- tion's finance minister. Throughout the report, MT. 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 de- tail by the document, Treasury lfbra- Tians recalled that the financial his tory of the Civil War Is buried in a great stack of musty ledgers, and probably never will be officially com piled.
 For the 15 months ending last June 30 Secretary McAdoo estimated that the actual cost of the war, with all lowances for the governments ordi- nary expenses in ordinary times, amounted to $13,222 OOO GOO. Nearly half of this, or $6, ,499, GOO, 900, went into permanent investments, in the form of ships shipyards, war vessels, army camps, buildings, and in loans to Al lies or to American war industries. Of the years expenses 31.6 per cent. came from taxation.
 Army and Navy Expenditures.
 The civil establishments of the gov ernment during the year spent $1, BOT, ,OCO, ,0G0, while the War Department spent S5,6S4, ,00O, 900 and the navy $1,- 36S, 100000 For support of the army alone the government paid out $4,- 412,000,000. The naval expenditures in cluded the construction of new ves- sels machinery armament, equipment and improvements at navy yards. To- tai ordinary disbursements for the year amounted to $8,966, 100000 and or dinary receipts, excluding money re- ceived from Liberty Loans, amounted to $4,174, 100000. Loans to Allies dur ing the year amounted to $4,739, 900, 900 additional
 looking forward, Secretary McAdoo found great difficulty in forecasting expenditures for the current fsca year which ends next June 30, on 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 explanation MT. McAdoo forecast ex- penditures for this year at $20,6S7, 000000 for government purposes an6 $4,375, 900 900 for loans to Allies anG $2,540 900 for redemption of out standing certificates and other deb cancellation. Total estimated dis bursements for the year were put a s27, ,71S, ,OOO,GOO.
 s1.5OO O,OOO, 900 Per Month.
 Against this estimate which actua expenses at the rate of a little mor' than a billion and half dollars { month to date, indicate is too high Mir. McAdoo calculated that the gov ernment will receive about 1000, 900, 600 before the end of the fiscal yea next June 30, from income and profit taxes, s1, 100 O000,OOO from other taxes $190 000,0O0 from customs and $555, 900, 900 from miscellaneous sources, in cluding S7O,OOO,000 from increased pos tage, making estimated receipts fror ordinary sources s6, ,846, 900, ,OOOO. In ad dition, he figured roughly on a littl more than 5000, 900 900 from furthe issues of liberty bonds and 200, ,OOO coo from war savings. These figure added to receipts from Liberty Loa bonds already sold make $14, ,16S 900 ,OC the total of popular borrowings ex pected during the war. On this bast total estimated receipts would be $21 22,0000 900 or $6,695 000 GOO less than ten tative estimates of disbursements. At tual developments are expected { change these calculations greatly.
 The United States public debt lat June 30 was SIP, 396, ,0O0, 900, wtthol taking into consideration the $1 ,319 GOO, 900 free balance in the Treasury 1 partially offset the debt. The publ debt has been increased since then the Fourth liberty Loon of near $7 1000 900 and by Treasury certif cates of indebtedness amounting several hundred million dollars.
 The report disclosed for the fir time the activities of the Treasury sinking fund to buy up Liberty Bont in an effort to keep their price fro falling far below par. Up to Noven ber 1, it is shown, S244, ,036, 800 worth bonds, face value, had been purchase 4 on the open market for $2S4, ,31O ,OOO, at an average price of about 96 D. cent, and subsequently held by u Treasury. Of this sum, SIP 445 c were second Liberty Loan bends, rboth 4 and 4 1-4 per cent. issues; $7t 935, ,000 were third Liberty Loan bond and $65 600. 900 were first Liberty Lo; converted bonds.
 Vast Loans to Industries,
 The report also showed that the w Finance Corporation, up to Octob 31, had made loans amounting to s6 T16,0O0 of which $29 S63. .0CO had be repaid, leaving advances outstandi SS7. .s52 G0O Most of the loans, or s6 7S9Oe9 went directly to war indu tries Public utilities were the prin,