Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1918-12-06
Financial History Of
Americas Port an WUr
Told by Secretary McAdO0

character involving new extensions
which would not he contributory to
the winning of the war. The proven
tiOn of approximately S450, 1000, 600
of unnecessary issues which could be
postponed was an important contr'-
button to the conservation of the ma
TONS resources
Nust Pass Bill Quick
Mr.. McAdoo took the occasion to
emphasize again the importance of
fastening enactment of the revenue
bill now pending in congress.
Unless the measure becomes a
law in the near future" he said, 1T
will not be physically possible for
the treasury to frame the necessary
regulations and to print and dis
tribute the necessary forms before
the returns and taxes will be due.
The enforcement Of the law will nee
essarily be imperiled.
THE wisdom of such action is
emphasized by every sound economic
consideration and wise tax policy.
1t is desirable and necessary from
the viewpoint of the treasury in
condeusing the period of readjust-
ment, and from the viewpoint of
labor and industry generally"
Mr.. McAdoo reviewed the financial
practices of the year, including the
floating Of short term certificates of
y
Liberty loan TO prevent the disturb
ing of the money market by the
loans and to obtain the money need
ed by the treasury in advance of
loan receipts. He said the. war saw
ings movement had resulted not only
in gathering in sS34,000,000 for war
purposes up to November !, but it
had helped 10 teach the American
people thrift and economy.
This wartime experiment has
been so successful" he commented,
that it is hoped war savings GER
tificateS Will become a continuing
feature OF the nations financing eve.
after the restoration of peace"
The report explained at length
that u feature Of the treasury's pol
icy in distributing the $8,171 900, 600
credits to allies during the year, has
been to stabilize foreign exchange
rates and bring the dollar near err
no. mention the specific acts under
taken by the treasury to accomplish
this. In exchange tor credits,
France gave the United States credit
in France of $631, 275,000 for army
supplies. Great Britain established
similar credits Of S115,633,000, ana
Italy $5,2S4,000.
Turning to the enormous task of
collecting $3,694,610,00O in taxes
during the last fiscal year, or more
than four times the record collection
of the year previous. the secretary
complished largely through the CO.
operation of business interests AMI
individual tax payers.
During the fiscal year 1918, said
the report, the Bureau of Internal
Revenue has been able to collect the
largest tax ever collected by any
country, an amount which repTe-
sontS a larger proportion of the ma
tons war budget than any other
belligeront engaged in the present
war has been able to detray from
tax revenues"
From would-bc tax dodgers the
revenue bureau now expects to col
lect several hundred million dollars
additional taxes.
Federal Reserve System
Concerning the tremendous part
played by the Federal reserve system
during the war SECRETARY McAdoo had
this TO say:
The federal reserve system has
permitted the enormous transactions
connected with the financing OF the
war to be. carried through without
shock or disturbance ana it's services
will not be less important TO the
government and to the nation in Ia
cilitatlng the reimbursement from a
war basis to a peace basis and TO as
sist and foster thereafter the deVel-
opment of agriculture. industry and
commerce under normal peace condI-
tionS."
Mr.. McAdoo dealt at length with
the accomplishments of the War
Risk insurance bureau, which has
built up an organization of fourteen
thousand employees, necessary for the
issuance of about q million checks
every month to soldiers or their de-
pendents for allotments, allowances,
disability compensation and inSur-
ance.
at is certainly one of the greatest
business enterprises in the world,
he said. land Individually the largest
life insurance concern on the globe.
having nearly s36.000, 100000 OF life
insurance in force"
The report discloses that Liberty
Loan conversions have been made as
follows: First Liberty Loan 8 IL
per cent bonds exchanged for per
cent bonds, 56S,320,000; first Lib
erty Loan 1-2's and AS exchanged
for LAS. SIS3.S99, 900; second Lib
erty Loan As exchanged for 4 AS,
most bond buyers have failed to take
advantage of the treasury's offer to
convert past isues into bonds bearing
a higher rate of interest. 1t is now
too late to convert.
Referring to federal farm loans
amounting to s118.52S.O00 during the
year ending last September 30, the
report said: "The existence of this
system operated under government
supervision. granting long-term loans
ut reasonable rates of interest, has
unquestionably saved the farmers of
the United States from many OK
actions, foreclosures and denial OF
financial accommodate lions during
this perid. The system has been
harbor OF refuge for the borrowing
farmer Through its competition
with other loaning agencies il has re-
duced interest rates almost every
where in the United States and has
saved the farmer in large measure
from those financial troubles which
otherwise must have heset him. IL
has constituted the greatest govern
mental agency for financing the basic
industry Of the United States--that
of agriculture.
The report also dealt with the
treasury's activities in licensing and
supervising the liquidation OF enemy
insurance cOmD1 MES o0erating in the
United States: the public health serV-
ices tremendous accomplishments
in combating the Influenza epidemic
and maintaining sanitary conditions
about camps: the international high
commissions success in promoting
uniformity of commercial regulations
between tho United States and LATIN
American countries. and the tasks
imposed on the customs service in
connection with the policing OF mar
bors during The war.
E.o. AroovoJ b,,