The sun., 1918-10-18
NEW LOANS COMING
EVEN IF WAR ENDS
McAdoo Warns Present CAM
paign Cannot Be Extended
Beyond Tomorrow Night.
MONEY ALREADY SPENT
More Billions Will Be Needed
to Bring Armies Home
Again.
s,,ctai Despatch 10 TEE sus.

SrcCtdt DcSp1tCN " thH cN'''
WASHINGTON, Oct. IA stupendous
financing programme faces the nation
and the American people whether peace
comes this week or next year. For THIS
reason Secretary of the Treasury Nc
Adoo declared to-day the Fourth Liberty
Loan must and will be fully subscribed
by the American people, though with
only two days to go 1t Is $2,oo0'ooo'ooo
shy of the total asked.
Secretary McAdoo frankly admitted
that peace talk at this time had had
serious effect upon the loan because OF
a lack Of full realization by many people
that the war expenditures could not be
stopped abruptly.
Billions Needed After War Ends.
ere peace Gomez" the Secretary said.
at will take billions TO bring peace TO
the shores of America. support for our
army fighting upon the other side cannot
be stopped because these boys have won
victory for us. There are 100000 men
on the other side now. and at best they
cannot be brought back faster than 30O,-
900 a month.
This means that we would be con-
siderably more than half a year getting
the boys home again IL peace came to-
morrow. and in the meantime We must
feed, clothe and supply them. And even
SO we have no right to talk OF peace
now. No matter how gratefully we
might welcome It, peace IL not in sight.
Including the deficiency measure al
ready passed by the House. Congress has
appropriated $4,000, 100000 for the
present year alone. We have contracted
for huge bills. Uncle Sam has always
paid his bills and he will pay them now.
Our expenditures cannot be abruptly
stopped and the people must know this
and realize 1t fully. We are already
spending at the rate OF $4,000. 100000
for the year. This is $4,000, 100000 a
month OF expenditures that Uncle Sam
must meet.
with respect to the $4,000 600, 900
appropriated by Congress 1t might be
said that the country cannot spend so
much, that production cannot be brought
up to this point There is no guaran-
tee of this, however. as production Is
still increasing. Bgt even so the present
loan not only must be subscribed. but
future loans. The floatation of bonds
will be necessary even after peace comes
to meet the war bills contracted and to
meet the reconstruction programme that
will be necessary"
In this connection the Secretary
pointed out that with another year of
war this nation probably will sp-nu
SIS. 100000 or more. Such an eX-
penditure will make an extensive pro-
sramme of REIMBURSEMENT and reconstruc-
ton one of the first essentials. The ex-
penditures authorized by Congress for
the present year alone arc equal 70
80 - "a, Go, 70 N
date.
The Secretary. emphasizing that the
loan must be subscribed. declared that
he was perfectly willing to guarantee
personally that II would be taken. He
made II plain that the time OF the cam
paiGn would not be extended. The loan
drive will end Saturday night and the
United states will face the world with
success or failure in backing up its
army and the war programme outlined
Failure. II is pointed out, would mean
the spreading of Information among the
German people to the effect that the
American people were on the verge OF
revolution. that they were not support
ing the Government and were divided
in the war; something that would tre-
mendously strengthen the morale OF
Germany.
escaped the casual observation of many
Americans the Secretary brought out is
the fact that the Treasury has found Il
necessary to meet its daily bills, to hor-
row on short term Treasury certificates
in advance OF this and other loans -Four
and half billion dollars of the $4,000
900. 900 asked for in the present loan
has been spent already.
L,u,ntx
The money was received from the
banks on short term Treasury certifi.
Gates and In the expectation that the
Indebtedness would be converted into
long time paper and distributed in the
country. II the Government Is TO meet
its short term obligations and it's wal
bills II must have the six billion asked
for.
The Treasury has a daily balance to.
day of but little more than billion dol.
lars. enough to meet expenses for little
more than two weeks. The four and a
half billion dollars In Treasury certih.
Gates are to be taken back in payments
on Liberty bonds. leaving n balance OF
only $1.500,000.0 900. which will not, with
the present balance, carry up to the first
OF the year without further financing.
Adjustment OF the Government OK.
penses after peace comes will be slow
process. Contracts that are running
cannot be cancelled. War plants must
get their money and must in turn make
wage and salary payments to millions
working for them Even IL Germany
surrendered tomorrow enormous wal
expenditures would have to be continued
for many months and during all OF the
time 1t will take to bring back our army