New Britain Herald Newspaper, December 4, 1918, Page 5

NEW BRITAIN FINANGIAL HISTORY | O AMERICY'S PART Treasury Dept. Amnounces Sec. McAdoo’s Complete Report The financial rt Washington. Dee. history is set of America’s pi in the war by Secretary McAdoo drafted wation and made public tolay It is the history of how people paid billions n four g Liberty Loans tremendous pool of which the Treasury, through its many agencies, paid bills of the army and navy, £hipping board and other government departments, oz billions to the Al- lies and millions to war industries, helped support the families of sold and sailors and tided farmers over pe- riods of fipancial stringency. e payment into the Treasnry ot vast sums in war taxes and from bond b sdles,” id Secrctary McAdoo, “and the ormation of our varied and forth n ts annual re t, by 1he the taxe: antl credit reasury American cd created with ra a war tran complex cconomic life to the supreme | of ccomplished task winning the war have been | without shock or finan- cial disturbance. The credit and bus iness structure of the nation remains sound and strong. The results of the four Liberty Loans are a tribute to tho patriotism of the American people and to the economic strength of the nation.” Civilians Second Tdne of Defense. The report constitutes Secretary McAdoo's final accounting of hiy stewardship before retiring as the na- tion’s ance minister. Throughout the report, Mr. McAdoo refers repeat to the remarkable achievements of America’s eivilian population in providing the money and materials of war and acting as the ‘“‘eager second I'ne of defense.” Commenting on the showing of nancial arrangements in great detail by the document, Treasury librarians recalled the financial history of the Civil War is buried in a great stack of musty ledgers and probably never /11l be officially compiled. For the fifteen months ending last June 30 Seeretary McAdoo estimated that the actual cost of the war, with allawances for the government's on- dinary expenses in ordinary times, amounted to $13,222,000,000. Nearly half of this, or $6,499,000,000, went into permanent investments in the form of ships, shipyards, war vessels, army camps, buildings, and in loaas %o Allies or to Amerfean war indus- | excluding money before hiw | the | | 000 from war savings. tries. Of the vear's expenses 31.6 per cent. eame from {axation. The civil establishmeat of the government during the year spent $1,507,000,000, while the war depart- ment spent $5,684,000,000 and the navy $1,368,000,000. For support of the army alone the government paid out $4,412,000,000. The naval ex- penditures included the construction of aew vesscls, machinery, arma- ment, equipment and improvements navy yards. Total ordinary dis- nments for the year amounted to 966,000,000 and ordinary receipts, received from Lib- loans, amouated to $4,174,000,- Loans to Allies during the year to $4,739,000,000 addi- erty 000, amounted tional Uncertain. Secretary Mc- Puture Is More Looking forward, Adoo found great difficulty in fore- sting expenditures for the curreat al year which ends next June 30. on account of the sudden coming of pea Estimates which he presented are based on calculations of each de- partment advanece of revisions since the signing of the armistice and he does not consider them reliable. With this explanation Mr. McAdoo | forecasts expenditures for this year at $20,687,000,000 for government purposes and $4,375,000,000 for loans to Allies and 540,000,000 for re- demption of outstanding certificates and other debt cancellation. Total es- timated disbursements for the year were put at $27,718,000,000. Against this estimate which actual expenses at the rate of a little more than a billion and a half dollars a month to date, indicate is tao high, Mr. McAdoo calculated that the gov- ernment will receive about $5,000, 000,000 before the end of the fiscal year next June 30, from income and profits taxes, $1,100,000,000 from other taxes, $190.000,000 from cus- toms and $555,000,000 from miscel- laneous sources, including $70,000,- Q00 from increased postage, making estimated receipts from ordinary sources $6,846,000,000. In addition he figured roughly on a little more than $5,000,000,000 from further is- sues of Liberty boads and $1,200,000,- These figures added to receipts from Liberty loan bonds already sold make $14,168,000,- 000 the tota] of popular borrowings expected during the year. On this basis total estimated receipts would be $21,022,000,000, less than tentative estimates of dis- bursements. Actual developments are expected ta change these calcu- lations greatly. # America’s Public Debt. The United States’ public debt last June 30 was $12,396,000,000, with- out taking into consideration the $1,- ury to partially offset the debt, The public debt has been increased since then by the Fourth Liberty Loan of nearly $7,000,000,000 and by treasury certificates of indebtedness amount- LEONARD HAR Relieves Deafness, Ol L, Stops Head Noises Nine out of ten cases of Deafness and Head Noises are caused by catarrhal mucus (matter) in the Eustachian Tuby Leonard Ear Oll removes the mucus, o) passages of the head, and the result is Noises. It Is not put in the ears, but is which connects the nose and the ears. s up the tube and the other alr mproved Hearing and rellef from Head e, in the nostrils, and “‘Common Bense Di- rections for Care of Hearing," which ac- companles each bot- tle, tells you exact- 1y how to take care of your own case. Do not be misled by substitutes or imitations. The only genuine “EAR OIL” | is A O, Leonard | Ear Oil. It is the | original and has been on the market | since 1907, and every | i \ Look for this Rubbed in Back of Ears’ and inserted - R — sign in Drug Store Windows It is a LEONARD EAR OIL AGENCY year it has relieved hundreds of people of their deaf, you huve already tried which have relieved many sueh cases as your own. Esr Troubles. No matter how long you have been nor how deaf vou are or what caused your deafness, or how many things failed to relie you, Leonard Ear Oil has Why not y A Testimonial That Subscribed and sworn to before me this 13th day of November, 1918. Joseph Braman, Notary Public No. 221, City and County of New York. wha ness had well usin| as e 8inc A Now For sale in New Britain by The Dicki €rowell’s Drug Store, 254 Main St. Pro above druggists. This Signature on Yellow Box and on Bottle Dear Mr. my hearing completely restored by Leonard Bar Oil, Eation to let you and others know 1 had become so deaf I was con- sidering business because It was necessary for me to hear Leonard Far Has Been Sworn to e I feel it an obli- t it has done for me. My deaf- was caused by catarrh and I been growing worse for years. glving regular deafness. up my of my in my regular work. After less than two bottles of Ofl I hear as well ver and am still on my jeb. yours, JOSEPH = A 531 West 143th St, & erely FFORD, York Ci nson Drug 169 Main St. and of of Success will be given you by the ki Manufacturer Suite 605, 70 Fifth Ave., New York City How often has an attack of indigestion interfered with your work or spoiled yo ur pleasure? Good health is mostly a matter of sound digestion. Whenever you are troubled by dyspepsia, flatulence, sour eructations, sick headache, biliousness or constipation, take Beech- am’s Pills. They quickly and effectively correct digestive disturbances, stimulate the supply of gastric juice and Tone the Stomach Directions of Specia} Value to Women are with Every Box. Sold by druggists throughout the world. In boxes, 10c., 25¢. or $6,695,000,000 ; 319,000,000 free balance in the treas- | ing to several hundred million dol- 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- ber 1, it is shown, $244,036,600 worth of bonds, face value, had been pur- chased on the open market for $234,- 310,000, or at an average price of about 96 per cent, and subsequently held by the treasury. Of this sum, $172,445,000 were Second Liberty Loan bonds of both 4 and 4 1-4 per | cent issues; $70,935,000 were third Liberty Loan bonds, and $656,000 were first Liberty Loan converted bonds. The report also showed that the War Finance Corporation, up to October 31, had made loans amount- ing to $67,716,000, of which $29,- 863,000 had been repaid, leaving ad- vances outstanding $37,852,000. Most of the loans, of $64,739,000, went di rectly to war industries. Public util- ities were the principal borrowers, while lumber companies, coal opera- tors, manufacturers and stock rais- ers rank next in number of applica- tions. The magnitude of the work of the Capital Issues committee was indica- ted by the report that since its or- ganization last May 17 it has exam- ined nearly 2,000 applications from prospective issuers of securities, ag- gregating about $2,350,000,000. “About 20 per cent of these applica- tions were disapproved” said the re- port, “and these were mostly of a character involving new extension which would not be contributory to the { winning of the war. The prevention of approximately $4650,000,000 of unnec- essary issues which could be post- poned was an important centribution to the conservation of the nation’s resources.” Mr. McAdoo took the oeccasion 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 necesssary forms before the returns and taxes will be due. The enforee- ment of the law will necessarily be imperilled. “The wisdom of such action is em- phasized by every sound economic consideration and wise tax policy. It is desirable and necessary from the viewpoint of the Treasury in con- 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 indebtedness in advance of every Liberty Loan to prevent the disturb- | ing of the money market by the loans and to obtain the money needed by the Tre2asury in adyance of loan re- ceipts. He said the war savings movement hed 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 econcmy. | additional taxes. | had this to say: i | Revenue has been able to collect the ! largest tax ever collected | country, an amount whieh represents i a larger War-Time Experiment a Success. “This war-time experiment has been so successful,” he commented, “that it is hoped war savings certifi- cates will become a continuing fea- ture of the nation’s finaneing even after the restoration of peace.” | The report explained at length that a feature of the Treasury’s policy in distributing the $8,171,000,000 credits to allies during the year, has been to stabilize foreign exchange rates and | bring the dollar nearer par in Euro- pean countries, but did not mention the specific acts undertaken by the Treasury to accomplish this. In ex- change for eredits, France gave the United States credit in France of $651,275,000 for army purchases. Great Britain established similar credits of $115,633,.00 and Italy $5,- 284,000. Turning te the enermous task of colleoting $3,684,619,000 in taxes dur- ing the last fiscal year, or more than four times the record collection of the year previous, thc Secretary em- phasized that this had been accom- plished largely through the co-opera- tion of business interests and indi- vidual tax payers. “During the fiscal year 1916,” said the report, “the Bureau of Internal by any proportion of the nation’s war budget than any other belligerent egaged in the present war has been able to defray from tax revenus.” From would-be tax dodgers the revenue bureau now expected to col- | lect several hundred million dollars Federal Reserve System. Concerning the tremendous part plaved by the federal reserve system during the war, Secretary MecAdoo “The federal reserve system JiffyJen Mint Flavor Jiffy-Jell come» in fresh- fruit flavors for desserts But it also comes in mint favor, to make instant garnish jell. The mint flavor comes scaled in a vial, %0 it keepe its strength and freshness. It makes a green jell has DAILY densing the period of readjustment, | Fre ik »A RA i D, McCallum’s “Onyx”’ Shoes. Shop Early WEDNESDAY. kind that wil keep him home nights. DECEMBER 4, 1918. etc. Child. Beautiful Christmas boxes with every purchase, from the Importers. Women’s Warm Lined Comfy Slippers, new designs. Misses’ and Chi dren’s Felt Slippers, with kitten’s head design. Men’s Slippers, the comfy That boy will appreciate a pair of Storm at Damon’s People of New Britain and vicinity have learned that Damon’s is just as good a place to buy Hosiery as it is to buy Shoes, Slippers, We have Hosiery for man, woman or Hosiery from All the Best Makers Can Be Found in This Stock Buckles that come Direct BOOTH'S BLOCK NEW BRITAIM. the enormous transactions connected with the financing of the war ‘to be carried through without shock or disturbance and its services Will not be less important to the gov- | ernment and to the nation in facili- tating the readjustment from a war basis to a peace basis and to assist! and foster thereafter the development | of agriculture, industry and com- merce under normal peace condi- tions. Mr, McAdoo dealt at length with the accomplishments of the war risk insurance bureau, which has built up an organization of 14,000 employes, necessary for the issuance of about a million checks every month to sol- diers or their dependents for allot- | ments, allowances, disability compen- sation and insurance. “It s eertainly one of the greatest | business enterprises in the world,” | he said, “and indubitably the largest | life concern on the globe, haviag nearly $36,000,000,000 of life insur- ance in force.” The report discloses that Liberty loan conversions have been made as follows: First Liberty loan 3 1-2 per cent. bond hanged for 4 per cent. bonds, first Liberty loan 31 exchanged for 41-4 8 second Liberty 4's exchanged for 4 1-4's, $1,541,661,- 000, his indieates that most bond buyers have failed to take advantago of the treasury’s offer to convert past issues into bonds bearing a higher rate of interest. It is new too late ta convert. Referring to federal farm amounting to 118,528,000 during the permitted loans i cy for financing the basic industry of vear ending last Beptember 30, the report said: ‘“The existence of this system operated under government supervision, gran@ing long term loans at reasonable rates of interest, has unquestionably saved the farmers the United States from many tions, foreclosures, and denis financial accommodations during fod. The system ha this SUNRAY MILL WHITE T MADE N ~ SPRINGFIELD ¢ PAINT AND CHEMICAL C: ‘e RACKLIFFE BROS. CO. _New Britain Distributor bor of refuge for the borrowing far-| mer. Through its competition with | other loaning agencies it has reduc- | ed interest rates almost everywhere in the United States and has saved the farmer in large measure from those financial troubles which otherwise must have beset him. It has consti- tuted the greatest governmental agen- the United States—that of agricul- ture.” The report also dealt with the treasury’s activities in liceasing and supervising the liquidation of enemy | insurance companies operating in the | United States; the public health serv- | ice’s tremendous accomplishments in | combatting the influenza epidemic and maintaining sanitary conditions about camps; the international high | commission’s success in promoting | uniformity of commercial regulations between the United States and Latin- American countries, and the tasks pased on the customs service in con- nection wth the policing of harbors during the war. SPANISH CABINET BEING ORGANIZED Count Romanones, Strong Pro-Ally Leader, Will Form New Minis- try; Plans Being Made. Madrid, Dec. 4 (By The Associated Press).—Count foreign minister in the Spanish cabinet, the resignation of which has been nounced, has been entrusted with the tagk of forming a new ministry. He has announced that he will consult with leaders, beginning with Antonio Maura, former premier and minister Romanones, an- EXAMINE HUN FINANCES. Special Committee to Determine How Much Germany Can Pay. London, Dec. 4.—Speaking at Boo- tle last night, Andrew Bonar Law, the cehancellor of the exchequer, con- firmed the statement that the British government had decided to press the Allles as strongly as possible that the surrender of Former Emperor Will- jam should be demanded and that he should stand his trial. The chancellor also announced that the government had appointed & com- mittee to examine scientifically into the question of how much the enemy would be able to pay. DISCHARGED ¥FROM ARMY, Private Jacob Winkle, of this ecity, has received an honorable digcharge from the United States army and will return to this city within a few days. Private Winkle is a nephew of Con- stable Fred Winkle and has been sta- tioned at Fort Adams with a medical He went from this city to Camp Devens with a draft increment and from that camp was trensferred to Fort Adams, where he was made # first-class private in the medical corps. Winkle will again take up his busi- ness, the New Britain Window Wash- ing Co., which he left when drafted. He has continued to run the business while away through his elerk. unit. The second cup is . temptin have aft r'ieder'ésg first and you may as many as you. out of justice, in order to ensure some prospeect of stability to the new cabi- net. Count Romanones is a liberal leader and a friend of the allied powers in the war. He has been a member in some capacity of nearly all the Span- ish cabinets in the past ten years. In July, 1917, Count Romanones was reported te have declared he be- lieved the neutrality of Spain in the wer was an error. . Seversl months later he declared Spain should have | joiped the Entepts asainst Germany. At all times he bas been a vigorous supporter of a pro-adlled policy on the part ef Spain. The count is reputed to be one of the most popular poli- tical leaders in Spain. lease with-