Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1918-12-04
BY the Associated Press
Washington, Dec. 4

Washington, Dec. 4.
Tho financial history of America S
part In the war Is set forth by Secre-
tary McAdoo in his annual report, draft
ed before his resignation and made pub
Nc today by the Treasury. 1t is the his
tory of how the American people paid
billions In taxes, raised four great Lib
erty Loans and created n tremendous
pool of credit with which the Treasury.
through Its many war agencies, paid
the bills of the army and navy, the ship
ping board and other Government de-
partments, loaned billions to the Allies
and millions TO war industries, helped
support the families OF soldiers and sail
ors and tided farmers over periods of
financial strinEency.
'"The payment into the Treasury of
Frvast 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
accomplished without shock or financial
disturbance. Tho credit and business
structure Of tho nation remains sound
and strong. The results OF tho four Lib
erty Loans are tribute to the patriot
Ism of the American people and to tho
eoonomio strength of the nation.''
NIcAdoo's Final Accounting
The report constitutes Secretary Nc
Adoo's final accounting of his steward
ship before retiring as the nations
finance minister. Throughout the report
Mr.. McAdoo refers repeatedly to the re-
markable achievements of Americas
civilian population in providing the
money and materials for war and acting
AZ the "eager second line of defense
II Commenting on the showing of flnan-
cial arrangements in great detail by
the document, Treasury librarians re-
called 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
,Jene 80, Secretary McAdoo estimated
that the actual cost of the war with al
lowances for the Governments ordinary
Expenses In ordinary times, amounted
to S13, 100000. Nearly half Of this,
or s6,49e, 100000, went into permanent
investments, in the form of ships, ship
yards, war vessels, army camps. build
ings, and In loans to Allies or to Ameri-
can war industries. OF the years ex-
penses 31.6 per cent came from taxation.
Army Spent Five and a Half Billions
u The civil establishment of the Govern
rnent during the year spent $1,507, 000,-
200, while the War Department spent
$5.6S4,0 100000 and the navy s1,36S, ,000,-
Q00. For support of the army alone
the Government paid out s4,412.000,0OO.
The naval expenditures included the
construction Of new vessels machinery,
armament, equipment and improvements
at navy yards. Total ordinary disburse-
unents for the year amounted to $780,
100000 and ordinary receipts. excluding
money received from Liberty Loans,
amounted to s4,174,00o.O00. Loans to
ALLIES during the year amounted to
s4,739, 900 additional
Looking forward. Secretary McAdoo
found great difficulty in forecasting
expenditures for the current fiscal year.
Which ends next June 80, on account
OF the sudden coming of peace. Esti-
mates which he presented are based on
y calculations of each department in ad-
(Syance OF revisions since the signing of
the armistice and he does not consider
them reliable. With this explanation
Mr.. McAdoo forecast expenditures for
this year, at s20,6S7, 100000 for Gov
ernment purposes and S4,375, 900, 900 for
loans to Allies and $2,540,0O0,000 for
redemption of outstanding certificates
and other debt cancellation. Total esti-
mated disbursements for the year we're
put at s27,713,O00,ooo.
Five Billions From Taxes
Against this estimate, which actual
expenses at the rate of little
more than u billion and a half dollars
month TO date indicate Is too high,
Mr.. McAdoo calculated that the Govern
nent will receive about $1,000, ,O00, 900
before the end OF the fiscal year next
June 80 from income and profits taxes /;
3f10o,000.000 from other taxes; $780,
100000 from customs and s555, ,000. 900
s>frcn miscellaneous sources. including
|l$10,000. 900 from increased postage maxi
ing estimated receipts from ordinary
,sources s6,S46,000,000. In addition he
figured roughly on n little more than
$5, 000. 100000 from further issues of
Liberty Bonds. and $1,000, o00,0 from
war savings. These figures, added to
receipts from Liberty Loan bonds al
ready sold. make $14,16S. 100000 the
total of popular borrowings expected
during the year. On this basis. total
estimated receipts would be.-$21,022,-
600. 900 or S6,695, 900, 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 $12,396. 100000. without
j taking into consideration the s1,319, ,000.-
go free balance in the Treasury to
/ partially offset the debt. The public deb,
4 na8 bctH llCEcdStu lHtll Dy tHc
f6urth Liberty Loan of nearly $1,000
sQoo,000 and by Treasury certificates of
zidebtedness amounting to several hun
dred million dollars.
The report disclosed for the first time
the activities Of the Treasury's sinking
fund to buy UP Liberty Bonds in an ef-
fort to keep their price from falling far
below par. Up to November 1, It is
shown, 244,036,5o0 worth or bonds, face
value, had been purchased on the open
market for s234,310,000, or at an aver
age price Of about SO per cent, and sub
sequently held by the Treasury. OF this
sum, s172,445,00o were second Liberty
Loan bonds. of both 4 and ~ per
cent issues; s70,935,000 were third Lib
erty Loan bonds, and S656.000 were first
Liberty Loan converted bonds
War Finance Corporation
3 The report also showed that the war
finance corporation. up to October 81,
had made loans amounting to $67716,-