Milford chronicle., 1919-04-18
TREASURY HEAD
SPEAKS TO YOU
Secretary Glass COTTeGts En-
TOneOuS Statement Regard
Ing Necessity For Loan.


ter GLASS; Secretary of the Treasury
will be of special interest to thu
readers of this paper due to remarks
we have all heard in regard to thu
necessity for another Liberty Loan. =
"A rumor has reached the Treasury
that a mistake has been made by the
authorities, that from $15,000,OO0OO
to 1T,00O.OOO,O00 has been returned
TO the Treasury as result Of the
armistice and that therefore another
Liberty Loan is unnecessary.
"The rumor is absolutely unfOunded
suppose 1t has its origin in a fail
ure to understand the discussion of
the proposed repeal by Congress OF
S15, ,O9O 100000 Of appropriations and
authorizations. This does not mean a
return Of money to the Treasury, but
cancellation Of authority heretofore
given by Congress to eXpend money
in the future. Such reduction in fu-
ture expenditures was anticipated by
Secretary AcAdOo and fully allowed
for when on November 14th he wrote
to Senator Simmons fOrecasting an
expenditure OF some S15000.O00 600
for the fiscal year ending June 30,
1919, and suggesting a reduction in
taxes for that year TO $6.000OO0,OO0
and for the fiscal year ending June
80, 1920, to $4,OOO,OO0,0OO
"As 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
NJ 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
reached the Treasury only very
small part were available for the fu-
-ure requirements of the government,
he greater part of the proceeds heing
to retire the short time Treas
lry certificates Of Indebtedness issued
n anticipation of the Loan.
THE S2,3OOOOO.OOO net proceeds
If the Fourth Liberty Loan were soon
To meet the current ex-
Ienditures Of the government since
lbOut the time of the armistice it has
,een necessary to borrow S4231 $780,
100 on Treasury certificates
''The moment the armistlce was
signed America was approaching the
Deak of her effort in men and ma
erials. American industry was ap-
the peak Of production. II
s safe TO say that without the nm
tinted effort the war could not have
'een brought to so early a conclusion.
The bills incurred during this period
4 great military and industrial ef-
ort must be paid 1t takes weeks
ONE times mOnths-fOr the bills so
incurred to reach the Treasury in the |
Orm OF actual demands for cash pay |
lents A very large part of the ex-
enditures made by the government !
uring the period since armistice day |
ave been in payment Of bills incur
ed prior to that day.
Although the war is won, peace
as not been signed. We must feed
nd pay our brave troops in France;
e must share with the Allies the
uty If bringing peace to the world
ow that victory is ours. Our SOL
iers must be paid until the exigen-
es of the military situation permit
leir return to private life. They
ust be fed and clothed and trans
Drted back to their homes. Every
fort is being made in every depart
ent of the government to curtail
lpenditures with the utmost possi-
e rapidity. But just as 1t was i'm
for the United States to reach
Ie peak OF its war eiTOru at the mo-
ent of the declaration of war, so it
as impossible that the expeditures
the government should stop
'ruptly at the moment of the signing
the armistice. That would have
cant abandoning the Allies at the
Oment of victory, abandoning our
Ildiers in Europe without pay, re-
ldiating the bills incurred by the
'vernment for war materials and
pplies, the destruction of the gov
credit, the wreck of our in
lstrial and financial fabric and So
al and economic chaos"