U.S. TO PROVIDE "GREAT LOAN" TO THE ALLIES
Washington, D.C. (JFK+50) One hundred years ago, April 7, 1917, the decision was made for the United States to make a loan of $2,000,000,000 to the Allied nations fighting against the Central Powers in the world war.
The decision, made by Secretary of Treasury William G. McAdoo* and ranking members of the Congress of the United States, came just one day after the United States declared war on Germany.
The "great loan," offered interest free, was expected be financed by a $5 billion bond issue which would include $3 billion for use in America. The necessary legislation providing for the loan was predicted to be approved in 30 days and the bond issue ASAP.
According to the Chicago Daily Tribune, Treasury Department officials said that American investors could "absorb without difficulty" the total amount of the loan.
*William Gibbs McAdoo (1863-1941) was born in Marietta, Georgia & moved to Knoxville, Tennessee when his father became a professor at the University of Tennessee. WGM graduated from UT & became a Deputy Clerk of the US District Court for Eastern TN. He was admitted to the bar in 1885.
WGM was a leader of the Progressive movement & was Woodrow Wilson's campaign manager in 1912. He served as Secretary of Treasury 1913-1918, & Senator (D) California 1933-1938. WGM died in Washington, D.C. & is buried in Arlington National Cemetery.
"U.S. Billions For Allies, Vast Loan For Victory," The Chicago Daily Tribune, April 8, 1917, www.archives.chicagotribune.com/
William Gibbs McAdoo