Five Mile Beach weekly journal., 1919-02-21
TREASURY HEAD
SPEAKS TO YOU
Secretary Glass COrreCtS En-
TOReOuS Statement Regard
ing Necessity For Loan

will be Of special interest to the
readers of this paper, due to remarks
we nave 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, 100000
TO SIT, 200 has been returned
to the Treasury as q 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
ure to understand the discussions Of
the proposed repeal by Congress of
$4,000, 100000 of appropriations and
authorizations. This does not mean a
return of money to the Treasury, but
Il cancellation of authority heretofore
given by Congress to eXpend money
in the future. Such reduction in flu
ture expenditures was anticipated by
Secretary McAdoo and fully allowed
for when on November 14th he wrote
to Senator Simmons forecasting an
expenditure of some $15,000,OO0,0OO
for the fiscal year ending June 30,
1919, and suggesting a reduction in
taxes for that year to $6,000,OOO,OOO
and for the fiscal year ending June
80, 1920, to 81, 000,0 0 10000.
GAS a matter of fact, the whole
proceeds of the Fourth Liberty Loan
and of all previous loans had, at the
time the armistlce 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
sale of Liberty Bonds. This practice
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
IHdCn6u Tie 1lcuSuIN OHly a NCIy
small part We're available for the flu
ture. Requirements of the government,
t~heIgreater part of the proceeds being
required to retire the short time Treas
ury certificates Of Indebtedness issued
in anticipation of the Loan.
"The $780, 100000 net proceeds
of the Fourth Liberty Loan were soon
~-Io..tI ITO ,on0+ Ah0 oYrranf nv
penditures of the government since
about the time of the armistice it has
been necessary to borrow $4,231, $780,
500 on Treasury certificates.
1.-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. 1t
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
ment Of the government to curtail
expenditures with the utmost possi-
Bile rapidity. But just as it vas i'm
possible for the United States to reach
the peak of its war effort at the mo-
ment of the declaration Of war, so it
was impossible hat the Expenditures
of the government should stop
abruptly at the moment of the signing
of the armistice. That would have
meant abandoning the Allies at the
moment of victory, abandoning our
soldiers in Europe without pay, re-
pudiating the bills incurred by the
government for war materials and
supplies, the destruction of the gov
ernment's credit, the wreck of our in
dustrial and financial fabric and so
cial and economic chaos"
THE PEACE TABLE.