The Pleasantville press. (Pleasantville, N.J.) 1912-1929, 1919-02-22
TREASURY HEAD
SPEAKS To- YOU
Secretary Glass COrreCts En-
rOnGOuS Statement Regard
Ing Necessity For Loan.

The following statement from Car
ter Glass, Secretary of the Treasury,
will be of special interest to the
readers of this paper, due to remarks
we have all heard in regard to the
necessity for another Liberty Loan.
"a rumor has reached the Treasury
that a mistake has been made by the
authorities, that from $4,000, 000,0 @
to ST., 900, 100000 has been returned
to the Treasury as a result of the
armistice and that therefore another
Liberty Loan Is unnecessary.
"The rumor is absolutely unfounded.
I suppose it has its origin in a fail
IRE to understand the discussion of
the proposed repeal by Congress of
$4,000, 100000 of appropriations and
authorizations. This does not mean a
return of money 70 the Treasury, but
a cancellation of authority heretofore
given by Congress to expend money
in the future. Such reduction in fu-
ture expenditures was anticipated by
Secretary McAdoo and fully allowed
u NItH OIl 4NONCIllbCl 1T IC NIolC
to Senator Simmons %forecasting an
expenditure of some $15.000,0 900 1000
for the fiscal year ending June so,
1919, and suggesting a reduction in
taxes for that year to $6,000,000,000
and for the fiscal year ending June
80, 1920, to $4,000, 100000.
GAS a matter of fact, the whole
proceeds Of the Fourth Liberty Loan
and of all previous loans had, at the
time the armistice was signed, been
expended or anticipated by Treasury
certificates of indebtedness issued
during the summer and early fall to
finance the current requirements of
the government and at that time out
standing and unpaid. 1t has been the
practice of the Treasury since the be-
ginning of the war to finance the cur
rent requirements of the government
by the issue of Treasury certificates
of Indebtedness of short maturity at
frequent intervals before each Liber-
ty Loan and to refund these Treasury
certificates from time to time by the
SdlC VI LlbtIlN bOlluS. Ills D1dGlltG
was followed in advance of each of
the four Liberty Loans so that when
any Liberty Loan was actually offer
ed for subscription and the proceeds
reached the Treasury only a very
small part were available for the fu-
ture requirements of the government,
the greater part of the proceeds being
required to retire the short time Treas
ury certificates of Indebtedness issued
in anticipation of the Loan.
"The $4,000, 100000 net proceeds
of the Fourth Liberty Loan were soon
exhausted. To meet the current ex-
penditures of the government since
about the time of the armistice it has
been necessary to borrow $4,231, $780,
800 on Treasury certificates.
"The moment the armistice was
signed America was approaching the
peak of her effort in men and ma
terials. American industry was APP
preaching the peak of production. It
is safe to say that without the I'M
stinted effort the war could not have
been brought to so early a conclusion.
The bills incurred during this period
of great military and industrial eff
fort must be paid. 1t takes weeks
some times mOnths-fOr the bills so
incurred to reach the Treasury in the
form of actual demands for cash pay
ments. A very large part of the ex-
penditures made by the government
during the period since armistice day
have been in payment of bills incur
red prior to that day.
although the war is won, peace
has not been signed. We must feed
and pay our brave troops. in France !;
we must share with the Allies the
duty if bringing peace to the world
now that victory is ours. Our. SOL
diers must be paid until the exigen-
cies Of the military situation permit
their return to private life. They
must be fed and clothed and trans
ported back to their homes. Every
effort is being made in every depart
laent Of the government to curtail
expenditures with the utmost posi-
bic rapidity. But just as it was I'M
possible for the United States to reach
;a2 peak Of its wal effort at the mo-
ment of the declaration of war, so it
was impossible that the Expenditures
Of the government should stop
abruptly at the momen of the signing
of The armistice. That would have
r}cani abandoning the Allies at the
IN Of victOrV ABANDONING o,1r
soldiers in Europe without pay, re-
pudiating the bills incurred by the
government for war materials and
supplies, the destruction of the gov
erment's credit, the wreck of our in
duS.rial and financial fabric and So