Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1918-12-06
Annual Report Of Secretary
MCAdOO Given Outflow
Our Contributed Billions
Were Spent

WASHINGTON. Dec. 1.-The fl
n2nciaI history of Americas part
ln the war Is set Iortil by Secretary
McAdoO in his annual report drafted
before his resignation. ana made puO-
tic today by the treasury. 1T is the
history OF how the American people
paid billions in taxes. raised TOUR
great liberty loans and created Il
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 10 the allies and mill
lions 10 war industries, helpcd sup
port the families of soldiers ana
sailors and tided farmers over peru
DDS of financial stringencY.
The payment into the treasury OF
vast sums in war taxes and from
bond sales" said Secretary McAduo,
land the transformation Of our va
ried and complex economic life to the
supreme task of winning the war
have been accomplished without
shock or financial disturbance. The
credit and business structure OF the
nation remains sound and strong.
The results of the four liberty loans
are a tribute TO the patriotism or
the American people and to the eco
nomic strength of the nation"
The report constitutes secretary
McAdoo's final accounting of his
stewardship before retiring as the
nations finance minister. Through
out the report. Mr.. McAdoo refers re-
peatedly to the remarkable achlcve-
ments of Americas civilian popuia-
ton 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 detail
bv the document. treasury librarians
recalled that the financial history OF
the Civil war is buried in a great
stack of mustY ledGerS, and probably
never will be officially complied.
For the fifteen months ending
June so Secretary McAdoo estimated
that the actual cost Of the war. with
allowances for the government or
binary expenses in ordinary times
amounted to Sl3,222.O 900, 600. Nearly
half of this. or .S6.499,O0O,OO0, Went
into permanent Investments. in the
form of ships. shipyards. war yes,
sells, army camps. buildings ana
in loans to allies or to American war
industries. OF the years expenses
GIG per cent came from taxation.
The civil establishment of the gov
eminent during the year spent @l,-
$4,000. 900, while the war depart
mont spcnt S5,6S4. 100000 and the
navy S1.3GS. 100000. For support ~
the army alone the government paid
ont S4.4l2,OO.00O. The naval eXpch-
,1iturer Included the construction Of
new vessels, machinery. armament
eoIipment and improvements at navy
wards. Total ordinary disbursements
for the year amounted TO SS.90o,UuU.-
600 and ordinary recelptS. excl uu. I..s
money received for Liberty Loans
amounted to s4,174,000,O0O. Loans 20
allies during the year anlouLlSd "
s473g, 100000 additional
Difficult to FORECAST
Looking forward, Secretary Mc-
Adoo found great difficulty III fore
casting expenditures tor the current
fiscal wear which ends next June
70 on account of the sudden coming
OF neace. Estimates which he pre-
sented are based on calculations Oh
each department in advance OF re-
visions since the signing OF the ar
mistice and he does not collSlueI
them reliable. With this explanation
AR. McAdoo forecast expenditures
for this wear 1T $40, 6S7 ,OO0,OOU for
governments purposes and SAB 3,UOO,-,
0OO for loans TO allies, and Sz,o4O,-\
DOT. 600 for redemption OF outStand-
ing certificates and other dcbI can
collation.. Total estimated dlsburse-
ments for the year were put at $z''-
$4,000, 900.
Ar this estimate, which actual eX-
DenseS at the rate of q little more
Than q billion and halt uolLdfs
month to date, Indicate is too hlSh'
Mr.. McAdoo calculated that the gov
ernment will receive about SO,Ouo,-
400 600 before the end of the fiscal
wear next June 80 from income and
nrofitS taxes, slice, 100000 from Oth-
er taxes; $ly0,0O0,000 from customs,
and $685., 10000 from miscellaneous
sources, including $7O.OOO,OO0 IRON
Increased postage, making estimated
receipts from ordinary sources Sc.
846,O0O,O00. In addition, he figured
roughly on a little more than S5,OOO,-
100000 from further issues of Lib
erty Bonds, and $1,000, 100000 from
war savings. These figures, ADDED
to receipts from Liberty 3onds al
ready sold. make 100000 the
total OF popular borrowings pected
during the year. On this basis total
estimated receipts would be $2l,-
022. 100000, or s6.695. 100000 less than
tentative estimates of dlsbursc-
ments. Actual developments are eX-
pected to change these calculations
The United States public debt last
June 80 was 81 2,396,C JC,0OO, without
taking into considera ton The 3l,SlJ,-
to partially offset the debt. The
public debt has been increased @'-ce
then by the Fourth Liberty Loan. of
nearly $1,000 200, 900, and by treas
TRY certificates OF Indebtedness
tc several hundred million
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 below par. Up to
November I. il is shown, S244, O3G.-
500 worth of bonds, face valve, had
been purchased on the open market
for $234,S10 00G. or at an average
price of about 96 per cent, and sub
sequently held by the treasury. OF
this sum. S172.445.000 were Second
Liberty Loan BONDS. of both and
IA per cent issues; S70,935,OOO
were Third Liberty Loan bonds, and
SOS. 200. 900 were First Liberty Loan
converted bonds.
The report also showed that the
War Finance coTpo ration. up TO Oc-
tobcr 81. had made loans amounting
to S67.716,0 900, of which $29.S6S.OO0
had been repaid. leaving advances
S3T.S52.00O Most of the
loans, or $54.739, 600, went directly
to war Industries. Public utilities
wcr1 the principal borrowers, while
lumber companies, coal operators.
manufacturers and stock raisers rank
next in number OF applications.
4 The magnitude OF the work of the
capital issues committee was indi-
Gated by the report that since its
org&nizat ton last May Il, it has eX-
amined nearly 1000 applications FROM
prospective :ssuers of securities, aS-
gregating about $2.350.0 100000.
About 90 per cent of these april