Republican farmer., 1918-12-13

Is set forth by Secretary McAdoo n his annual report drafted before his resignation, and made public today by the Treasury. It is the history of how the American people paid billions in taxes, raised four great liberty loans and created Q 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, i.elped support the families of soldiers and sailors and tided farmers over pe- rioCs 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 winring the war have been accomplished without shock or finan- cial disturbance. The credit and bus mess 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- ticn."
 American Loyalty.
 The report constitutes Secretary NcAdoo's final accounting of his stewardship before retiring as the ra- 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 libra- rians 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 90 Secretary MclAdoo estimated that the actual cost of the war, with al- lowances for the governments ordi- nary expenses in ordinary times, amounted to S13, 3,222 900, GOO. Nearly half of this, or $6 499, coo, GOO, 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.S per cent came from taxation.
 Army and Navy Expenditures.
 The civil establishments of the gov ernment during the year spent $1,- O7OG0 900, while the War Department spent 5,684, GOO 900 and the navy $1,- 36S, 900, ,OOO. For support of the army alone the government paid out s4,' 12,OO0,00O The naval expenditures in' cuded the construction of new ves' sells, machinery, armament, equipment and improvements at navy yards. To tai ordinary disbursements for the year amounted to $8, 966 ,OO0, GOO and or dinary receipts, excluding money re ceived from Liberty Loans, amounted to s4, ,174 GOO, 900. Loans to Allies dur ing the year amounted, to $4,739, 900, 00 additional
 Looking forward, Secretary McAdoC found great difficulty in forecastlne expenditures for the current f1sca year which ends next June 30, on ac count of the sudden coming of peace Estimates which he presented ar based on calculations of each depart ment in advance of revisions since tn signing of the armistice and he doe not consider them reliable. With thi explanation MT. McAdAoo forecast ex penditures for this year at $20, 6S7, 100000 for government purposes an $4,375 00O, 900 for loans to Allies an S2, $40 900, 600 for redemption of out standing certificates and other det cancellation. Total estimated dis bursements for the year were put a S27, ,718, ,0O0, coo
 S1,5OO,OOO 900 Per Month.
 Against this estimate which actus expenses at the rate of little nor than a billion and a half dollars month to date, indicate Is too higl MT. McAdoo calculated that the gov ernment will receive about S5 900, 900 900 before the end of the fiscal yea next June 30, from income and profit taxes $1, 100, ,0o00, GOO from other taxe $190 COG, 900 from customs and S555, 900 900 from miscellaneous sources, 1T cluding $70, 100000 from increased po tage, making estimated receipts frol ordinary sources $6, ,846, 900, ,0OO0. In aC dition, he figured roughly on a lit more than $5,00O, 900, 900 from furtht issues of liberty bonds and $1,2OO, OOO GOO from war savings. These figur, added to receipts from Liberty Dos bonds already sold make $14, ,16S, ,OO0, o the total of popular borrowings e pected during the war On this bas total estimated receipts would be $21 O22, 900, GOO or S6, ,6s5, ,OO0, 900 less than te tative estimates of disbursements. A tual developments are expected change these calculations greatly.
 The United States public debt la June 30 was $12, ,S9S, 900, coo, witho taking into consideration the 1, ,31! 900, 600 free balance in the Treasury partially offset the debt The pub debt has been increased since then the Fourth liberty Loon of near $7,O0Q, ,0o0,OO and by Treasury certi .- ~Ncates o5ff~-ir indebtedness amounting several hundred million dollars
 The report disclosed for the fiji time the activities of the Treasur! sinking fund to buy up btberty Bon in an effort to keep their price frC falling far below par. Up to- Mover ber 1, it is shown, $244 036, 800 worth bonds, face value, had been purchas on the open market for S2S4, ,S10, 900, at an average price of about 96 r cent, and subsequently held by { Treasury. Of this sum, S172 445 were second Liberty Loan bonds, Tooth and IA per cent. issues; S7 935, 900 were third Liberty Loan bon and $65, 500 900 were first Liberty Lo converted bonds.
 Vast Loans to Industries,
 The report also showed that the W Finance Corporation, up to Octo7 51, had made loans amounting to st T16 900, of which $29, ,s63, 0GO had be repaid, leaving advances outstand
 $37, ,S62, GOO. Most of the loans, or $t