The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-23

President and was a delegate to the
Baltimore convention OF 1912.
During the campaign Mr.. McAdoo,
though vice-chairman OF the Democratic
national committee. was In active
charge of affairs because Of the illness
Of William r. McCombs, chairman.
MIR. McAdoo assumed control of the
Treasury Department on March 4. 1918
lie devoted himself to the ganizatlon
OF the nations banking system with the
Federal Reserve Bank as the foundation
for the new structure. The system had
been hardly more than established with
The Federal Reserve Board at Washing
ton as the central supervising agency
when the outbreak OF the European war
confronted the nation with serious finan-
cial problems.
The interim before the war began was
not without trials for the Secretary OF
tho Treasury. He circled South Amer
Ca on the battleship Tennessee In the
spring OF 1915 with the International
High Commission on Uniformity OF
Laws. At Callao, word WAS received
that the bubonlc plague had appeared at
Lima and a scheduled visit TO the capital
of Peru was called off. The Governme It
at Lima took RIO pins TO disguise Its
resentment and Peruvian newspapers
ogy from the United States. The State
Department issued a statement that
Secretary McAdoo and his party meant
no discuurtesy.
The country reacted from the depres-
son that followed the outbreak OF the
war without any great harm havin:
been done, and Secretary McAdoo was
not backward In presenting statistics 10
prove that this had been due TO the ef
~ NJ
system. Also he talked of resisning. In
December, 1915. he told his friends that
he would not be Secretary OTTER the fol-
lowing March 4.
War Tasks Prove Enormous.
He did not resign. however, and when
the United States became a belligerent
on April 9, 1917, II was his task to
meet problems OF n magnitude before
unknown. Taxation to meet the costs
OF war loans TO the Allies. Liberty
Loans and war insurance were but the
most important OF innumerable matters
that had to DO worked out on n basis
OF staggering totals.
On December 81 President Wilson
issued proclamation for the taking
over of the railroads and the placing
OF Secretary McAdoo In charge OF them
rs Director-General. The Government
took possession on January I.
Director-General McAdoo appointed
regional directors, cut the salaries of
executives, gave trainmen a general In
crease. raised freight and passenger
rates and cut OF passenger trains He
pooied the facilities of all the roads TO
make a war machine that took no
thought whatever of public convenience
Secretary McAdoo married Miss
Eleanor Wilson. youngest daughter OF
the President, at the White House on
May Z. 1914. His first wife was Miss
Sarah Hazlehurst Fleming of Chat
tanooga. They were married In Chat
tRnoogR in 1855. Six children were born.
The first Mrs. McAdoo died In 1912.
Secretary McAdoo IL the fourth men,
Der Of the Cabinet President Wilson APP
'ointed at the beginning of his nrst term
TO resign. William Jennings Bryan.
indley NJ. Garrison and James c. Me-
Reynolds were the others. 1t was not
until Bryan and Garrison quit that Nc
Adoo began to be looked upon AZ the
strong figure OF the Cabinet II has
been a source OF pride to the Presi-
dent that few of his original Cabinet
rave left 1t. and 1t IL his habit to refer
70 the members as team.
Mr.. McAdoo has spoken frequently OF
.He small salaries paid TO Government
>ffic!als though never In personal way.
lie received 1000 a year as Secretary
OF the Treasury. and nothing as Direc-
tor-General Of Railroads. He fixed the
salaries of heads OF divisions IN the
Railroad Administration ut $4,000 a
vSar