A School History of the Great War

by Albert E. McKinley; Charles Augustin Coulomb; Armand Jacques Gerson

Passenger train service was reduced, chiefly in order to provide for the transportation of several million soldiers to and from training camps. Freight cars and locomotives from one railroad were kept as long as they were needed in the service of another. The roads no longer competed with each other for freight, but goods were sent over the road that had, at the time of shipment, the most room for additional traffic. At the end of 1917, as a measure of economy and to secure even greater unity of organization, the government took over the control of the railroads for the period of the war. As Director General of Railroads, the President appointed William G. McAdoo, who was also the Secretary of the Treasury.

Half a year later, the government likewise took over, for the duration of the war, the operation of telegraph and telephone lines, which were placed under the control of the Postmaster-General.

Shipbuilding.—Less than two weeks after the declaration of war the United States Shipping Board Emergency Fleet Corporation was organized with a capital of fifty million dollars all owned by the government. The Shipping Board had been formed some time before to increase the merchant shipping of the country. When war came, more and yet more ships were needed, not only to take our armies, and their food and fighting material, to Europe, but also to replace the shipping destroyed by submarines. In order that these ships might be built as speedily as possible it was desirable that the government should direct the work. Existing shipyards were taken over, and new shipyards were built by the government. In the building of ships the original program was more than doubled, and the United States became the greatest shipbuilding nation of the world. This was made possible largely through the construction of what are known as "fabricated ships"; that is, many ships built exactly alike, from parts made in quantities. Patterns are made for each special piece of steel and sent to steel plants in different parts of the country. There dozens of pieces are made exactly like the pattern. All the pieces for a ship are sent to the shipyard ready to be riveted in their proper places. Thus the shipyard can work much faster than if the pieces were prepared at the yard.

German Shipping Seized.—Immediately upon the declaration of war, the President ordered the seizure of ninety-nine German merchant ships which were in our ports. Most of them had been in harbor since August, 1914. They had been free to sail if they wished, but preferred not to risk capture by British or French warships.

When the United States officials took charge of these vessels, it was found that important parts of their machinery had been destroyed or broken, under orders from Germany. Repairs were quickly and skillfully made, the German names of the ships were changed, and a few months later over six hundred thousand tons of German-built ships were taking American troops and supplies across the seas.

Paying for the War.—Wars nowadays cost enormous sums of money, on account of the highly technical material that is used as well as the great size of the armies. There are two ways by which the money can be raised. The government can borrow money, and it can raise money by taxation. It was found wise to pay for the war by depending on both of these methods.

In May and June our people were called upon to subscribe to an issue of two billion dollars' worth of Liberty bonds. Half as much more was offered to the government. A second loan for three billions in November was again oversubscribed by fifty per cent. In 1918 the third loan for three billion, and the fourth loan, for six billion, were also oversubscribed. Up to November, 1918, the government asked for fourteen billion dollars, the people offered to lend about eighteen billion dollars, and the government accepted about sixteen billion dollars.

In addition to the above, the Treasury department authorized the sale of two billion dollars' worth of War Savings Stamps during the year 1918. These stamps represent short-time loans to the government which are so small that practically every person is able to invest in them.

It was deemed important also that the people should pay a large percentage of the war bill through taxes. Congress therefore passed a tax bill which not only increased the income taxes to be paid by individuals and companies, but also placed heavy taxes on many things which were more or less in the nature of luxuries, or at least were not essential to life. Railroad tickets, admission tickets to amusements of all sorts, telephone and telegraph messages, and hundreds of other things above a certain low minimum cost were taxed. In this way the government raised six or seven billion dollars in a single year, approximately one third of the current cost of the war.

Loans to the Allies.—Our government has from time to time advanced much money to the other nations who are fighting Germany. Practically all of these loans are in the form of credits with which the Allies pay for materials bought in the United States. Little if any of the money so loaned goes out of the country.