New Britain herald., 1918-12-04

lars.
 The report disclosed for the first time the activities of the treasury's sinking fund to buy up Liberty Bonds in an effort to keep their price from falling far below par. Up to Novem-
 Der 1, it is shown, $244, ,036,5 500 worth
 of bonds face value, had been pur- chased on the open market for $234,- 31O,O00, or at an average price of about 96 per cent, and subsequently, l held by the treasury. Of this sum, 172,445,ooO were Second Liberty Loan bonds of both and IA per cent issues; s70,e35, 900 were third 1 Liberty Loan bonds, and $666,0o0 were 1 first Liberty Loan converted bonds. l The report also showed that the War Finance Corporation, up to October 31, had made loans amount ing to $67716,000. of which $29, S63,00 had been repaid, leaving ad- , vances outstanding s37,S52, 1000. Most of the loans, of $64,739,000, went di- 1 rectly to war industries. Public util- ities were the principal borrowers, while lumber companies, coal opera 1 tors, manufacturers and stock rais CTS rank next in number of applica- 1 tions.
 The magnitude of the work of the Capital Issues committee was indica- ted by the report that since it's or
 ganization last May IT it has exam ined nearly 2,oO0 applications from
 prospective issuers of securities, az gregating about $2,s50, 0,000,000. About 20 per cent of these applica- tions were disapproved' said the re- port, F'and these were mostly of character involving new extension l., ;a1, frj% Yf<,~, h. winning of the war. The prevention of approximately s450,000,000 of unnec- essary issues which could be post poned was an important contribution to the conservation of the nations resources
 Mr. McAdoo took the occasion to 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 regu- lations and to print and distribute the necessary forms before the returns
 and taxes will be due. The enforce ment of the law will necessarily be
 imperilled.
 "The wisdom of such action Is en-
 phasized by every sound economic
 consideration and wise tax policy. It
 is desirable and necessary from the
 viewpoint of the Treasury In con-
 densing the period of readjustment
 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
 ;,6n Sr Of
 Liberty Loan to prevent the disturb
 ing of the money market by the loans
 and to obtain the money needed by
 the Treasury in advance of loan re-
 ceipts. He said the war savings
 movement had resulted not only in
 gathering in $834,000,000 for war
 purposes up to November 1, but it
 had helped to teach the American people thrift and ec0nomy.
 Wartime Experiment a Success.
 This wartime experir,en ent has been so successful" he commented, that it is hoped war savings certifi- cates will become g. continuing fea- ture of the nations financing even after the restoration of peace.'
 The report explained at length that feature of the Treasury's policy in distributing the $S,171, 100000 credits to allies during the year, has been to stabilize foreign exchange rates and ]! brlng the dollar nearer par in Euro pean countries, but did not mention | the specific acts undertaken by the 1 Treasury to accomplish this. In ex- change for credits, France gave the United States credit in France of 1 s651, 1,275,0o0 for army purchases Great Britain established similar credits of s115,63S, 100 and Italy $5,- 284,000.
 Turning to the enormous task of 1 ss,6s4,s 1000 ill taxes dur ing the last fiscal year, or more than four times the record collection of ] the year previous, the Secretary em- phasized that this had been accom- plished largely through the co-opera- ton of business interests and indi- vidual tax payers.
 During the fiscal year 1916," said l the report, the Bureau of Internal Revenue has been able to collect the largest tax ever collected by any country, an amount which represents a larger proportion of the nations gagged in the present war has been } able to defray from tax revenus.''
 From would-be tax dodgers the revenue bureau now expected to col i lect several hundred million dollars additional taxes.
 Federal Reserve System.
 Concerning the tremendous part l played by the federal reserve system l during the war, Secretary McAdoo l had this to say: