Republican farmer., 1918-12-13
MCAOOO'S REPORT GIVES
 HISTORY OF WAR FINANCE

tion's resources"
 McAdoo Urges Revenue Bill.
 MT. McAdoo took the occasion 70 emphasize again the importance of hastening enactment of the revenue bill now pending in Congress.
 Unless the measure becomes a law in the near future," he said, ''it will not be physically possible for the Treasury to frame the necessary reg ulations and to print and distribute the necessary forms before the re- turns and taxes will be due. The en- norcement of the law will necessarily be imperilled.
 The wisdom of such action is em- phasized by every sound economic consideration and wise tax policy. It is desirable and necessary from the viewpoint of the Treasury in condens- ing the period of readjustment, and from the viewpoint of labor and in dustTy generally"
 MT. McAdoo reviewed the financial practices of the year, including the floating of short term certificates of indebtedness in advance of every Lib erty Lean to prevent the disturbing
 
 and to obtain the money needed by the Treasury in advanace of loan re- ceipts. He said the war savings movement had resulted not only in gathering in $S34, ,OOO, 900 for war pur- poses up to November 1, but it had helped to teach the American people thrift and economy.
 This wartime experiment has been so successful he commented, "that it is hoped war savings certificates will become a continuing feature of the nations financing even after the { restoration of peace"
 Allies Received Huge Credits. The report explained at length that a feature of the Treasury's policy in distributing the S2,l71, ,OOOO GOO credits to allies during the year, had been to stabilize foreign exchange rates and
 bring the dollar nearer par in Flu ropean countries, but did not mention the specific acts undertaken by the : Treasury to accomplish this. In ex- change for credits, France gave the United States credit in France of $631, ,175, 900 for army purchases. Great
 Britain established similar credits of I$115, 6S3, 900 and Italy s5,284,O0O.
 | Turning to the enormous task of col
 lecting s3,694 ,S19, GOO in taxes during
 the last fiscal year, or more than four
 times the record collection of the year
 previous the Secretary emphasized
 that this had been accomplished large fly through the cooperation of bus
 mess interests and individual taxpay.
 CTS.
 During the fiscal year 191S," said
 the report, "the Bureal of Interna
 Revenue has been able to collect tht
 largest tax ever collected by any
 country, an amount which represent: ) a larger proportion of the nation!
 war budget than any other bel!igeren engaged in the present war has beer able to defray from tax revenues" From would-be tax dodgers the rev enue bureau now expected to collec
 several hundred million dollars addi tional taxes.
 l played by the Federal Reserve sys . tenn during the war Secretary McAdot . had this to say:
 The federal reserve system ha . permitted the enormous transaction 3 connected with the financing of tn 5 war to be carried through withou s shock or disturbance and it's service will not be less important to the gov = ernment and to the nation in facili ] tating the readjustment from a wa l basis to a peace basis and to assis = and foster thereafter the devebopmen [ of agriculture, industry and commerc under normal peace conditions | Mr. McAdoo dealt at length wit
 the accomplishment of the War Ris
 Insurance Bureau, which has built u j an organization of 14,00O employe! e necessary for the issuance of abol a g. million checks every month to SO l, diers or their dependents for allot = ments, allowances disability comper = sation and insurance.
 T Tt is certainly one of the greates s business enterprises in the world B. he said, "and indubitably the large: = life insurance concern on the glofb l. having nearly $36, ,OO0, C0O,O 900 life insu1 > ance in force"
 n Liberty Loan Conversions.
 The report discloses that Libert
 Loan conversions have been made { ~ follows: First Liberty Loan 1-2 pt = cent. bonds exchanged for 4 per cen 'S bbnds, s56S, 320, GOO; first Liberty Loa M 3 1-2s and As exchanged for 1-2' $183, ,S99, 900; second Liberty Loan 4 l. exchanged for 4 1-2's, $1,541, 661 ,0C '' This indicates that most bond buye ,, have failed to take advantage of u
 Treasurys offer to convert past issu = into bonds bearing a higher rate
 interest. It is now too late to col =. lYert.
 t Referring to federal farm loal '' amounting to SIS, ,52S,O0O during Il .s, year ending last September 30, u ~ report said: "The existence of tn ~ system operated under governme ,11, supervision, granting long-term loa :; at reasonable rates of interest, h to unquestionably saved the farmers " the United States from many exa s+ tlons, foreclosures, and denial .ss financial accommodations during u aa period. The system has been a ha VI bor of refuge for the borrowing ia =, mer. Through it's competition wi o4 other loaning agencies it has reduc od interest rates almost everywhere a-, the United States and has saved t - farmer in large measure from tlsc L financial troubles which otherw ,oo must have beset him. It has cons .oS tuted the greatest governmental age n cy for financing the basic industry a. the United States---that of agric1 on ture.'
 The report also dealt with the Tres
 Iury'S activities in licensing and { pervising the liquidation of enemy ,ar surance companies operating in
 limited States. the P,tb1ic HeoI+b C. en wee tleliieliuoGs 1t ~ ~ipllshInents ng ii"@ ''ins tiie ana ma A. IalnlnS SahItaly cohult-ons ab<