Woodrow Wilson to William G. McAdoo

Washington, D. C.,The Administration will ask Congress for authority to issue $5,000,000,000 of Government bonds to meet the situation created by the war with Germany. The proposed bonds will be exempt from taxation and bear interest probably at three and one-half (3½) per centum per annum. Two billion dollars of these bonds will be required to finance, in part, the expenditures involved in the proper organization and operation of the army and navy and the conduct of the wrar generally. Of course, a large amount of additional revenue will have to be raised by taxation, but this part of the problem is under consideration by the Ways and Means Committee of the House of Representatives. It will naturally take a reasonable time to discuss and agree upon the new items for taxation, which should not and, I am confident, will not become the subject of partisan treatment.
Three billion dollars of the proposed issue of bonds should be used to supply credit to the Governments making common cause with us against Germany to enable them to secure essential supplies in the United States and carry on the war with increased effect. The most serviceable thing we can do immediately for the common cause is to furnish credit to these foreign Governments who, in conjunction with us, are fighting Germany. This financial aid ought to be extended at the earliest possible moment. It will be trebly valuable and effective if extended now.
The purpose is to purchase the obligations of the foreign Governments to which credit is given -- such obligations to bear the same rate of interest and, in other essentials, to contain the same terms and conditions as the bonds of the United States.
The bonds of the United States will be offered as a great popular loan and the widest opportunity will be given to the public to subscribe, and, by subscribing, to perform one of the most patriotic services that can be rendered to the country at this time.
In view of the fact that the laws of the United States forbid the payment of commissions on sales of Government bonds, it is extremely gratifying to have received so many offers from bankers and others throughout the country, of the free use of their services and facilities in making the proposed bond issue a success. It is the purpose of the Department to make use of these offers and to seek the assistance of the Federal Reserve Banks, the National banks, the State banks and trust companies, the savings banks, insurance companies, private bankers and investment bankers throughout the country in the public offering that will be made of the Government's bonds. Every governmental agency, such as the Internal Revenue offices and post-offices, will be asked to assist in this patriotic work.
When the Congress shall have granted the necessary authority to make public offer of the bonds, I shall take the benefit of the counsel of the most experienced bankers and investors in the country as to the best means of making the offering a pronounced success.
The wealth of the United States is so great, the investment resources of the country are so large, the strength of our banking situation is so phenomenal, and the patriotism of our people is so aroused, that I am confident that when the Government offers its bonds for public subscription, the amount will be overwhelmingly subscribed.
So many offers have been received from bankers, organizations and individuals tendering their services and facilities to the Government free of expense in placing the bonds at the disposal of the public, that it has been absolutely impossible for me to make personal acknowledgment and express my deep appreciation and gratification at this genuine manifestation of patriotic interest in the efforts to finance the war. So I am asking the newspapers of the country to indulge me to the extent of advising the senders of the many telegrams and letters which have poured into the Department of the Government's appreciation of the loyal impulse and splendid spirit which inspired them.