Bonds, certificates of indebtedness, War Savings Certificates, and Thrift Stamps issued by the Treasury up to March 12 totaled $8,560,802,052.96. To meet expenses the Government has successfully floated two Liberty Loans with total subscriptions of $6,616,532,300, and on April 6, 1918, the first anniversary of America's entrance into the war, a third loan campaign for $3,000,000,000 was begun.
TAXES AND PRICES
The income tax has been greatly increased and the exemption limit lowered. New taxes have been imposed on corporate and individual profits, all profits arising out of the war have been penalized, and the old levies greatly increased. War taxes, customs duties, and internal revenue collections have brought in nearly $1,500,000,000. While the greater part of the war income and excess profits taxes are not due until June, the Treasury had collected in internal revenue taxes a total of $566,267,000 to March 12, 1918, and had sold $1,255,000,000 in certificates of indebtedness, which are receivable in payment of internal revenue taxes.
The Government has taken possession of and is operating all enemy-owned enterprises. At the same time, through a Federal Farm Loan Bureau, assistance is being given to farmers at reasonable rates of interest in providing the means for raising crops, needed in greater abundance than ever to feed the army and navy and civilian population and the peoples of the allied countries.
One of the first acts of the Administration after the declaration of war was aimed at putting a curb on the rising prices of the necessities of life. Herbert C. Hoover was appointed National Food Administrator, and after long delay his appointment was confirmed by the Senate. It was criticised, but Mr. Hoover has succeeded not only in bringing down the price of such necessaries as wheat, flour, sugar, coffee, meat, and lard, but by various devices and appeals to public sentiment has brought about a voluntary reduction of consumption and a consequent great increase in the amounts of food which America has been able to send abroad.
FOOD PROBLEMS
When the present Food Administration was created in August, 1917, the 1917 crop, in so far as productiveness was concerned, had already been planted and partly harvested. The available foodstuffs it produced were not sufficient, on the basis of normal consumption, to feed the people dependent on it, and the question of conservation became paramount. So far, "wheatless days," "meatless days," and appeals for food conservation have tided the nation over a dangerous period. The fixing of prices under a Presidential proclamation has greatly aided, speculation in wheat has been wholly eliminated, and the prices of flour and bread have been stabilized at a reasonable level.
Hand in hand with food conservation has gone the gradual control of industry of all kinds in order to concentrate the nation's resources for the purposes of war. The prices of metals necessary to war industries have been brought down by negotiation. Coal and fuel oil are controlled by Government agents, and it is not believed that the suffering caused by the fuel scarcity during the Winter of 1917-18 can be repeated.
The Government has taken over control of the railways and a number of coastwise steamship lines. It now operates 260,000 miles of railway, employing 1,000,600 men, and representing investments of $17,500,000,000.
The War Trade Board, created for the purpose of cutting off supplies to Germany through the adjacent neutrals, has developed into a powerful economic weapon in the execution of the nation's war policy.