ned for the first block of $2,000,000,000 of the
"Liberty loan" of $7,000,000,000 authorized by Congress in April. Great
popular interest was evinced and all classes of the American people
hastened to subscribe for the 3-1/2 per cent bonds, so that when the
books were closed on June 15 it was found that the loan had been
oversubscribed by $1,035,226,850 and the list of subscribers contained
no fewer than 4,000,000 names. Most of the amount raised was used
for loans to the Allies, to be expended in the United States for war
munitions and supplies.

A war budget appropriating $3,340,000,000 for current expenses of the
war was passed by Congress and signed by the President June 15; also an
Espionage bill which among other important provisions gave the President
power to place an embargo on all exports. On July 14 the House of
Representatives passed an Aviation bill appropriating the sum of
$640,000,000 for the construction and maintenance of an aerial fleet for
home and foreign service.

FOOD CONTROL BILL PASSED

On August 10 President Wilson signed the Food Control bill adopted by
Congress after prolonged debate, and he at once announced the
formal appointment of Mr. Herbert C. Hoover as United States food
administrator. Mr. Hoover, whose work as chief of the Belgian Relief
Commission had made him world famous, stated the threefold objects of
the food administration under the bill as follows:

"First, to so guide the trade in the fundamental food commodities as to
eliminate vicious speculation, extortion, and wasteful practices, and to
stabilize prices in the essential staples. Second, to guard our exports
so that against the world's shortage we retain sufficient supplies for
our own people, and to cooeperate with the Allies to prevent inflation of
prices; and, third, that we stimulate in every manner within our power
the saving of our food in order that we may increase exports to our
Allies to a point which will enable them to properly provision their
armies and to feed their peoples during the coming winter."

INTERNAL HANDICAPS IN AMERICA

While the United States was busily engaged in raising its new national
army, innumerable difficulties arose to be contended with by the Federal
and State governments and local authorities. Not the least of these was
caused by enemy propaganda of various kinds, designed to interfere with
the success of the selective draft. Active opposition to the draft
developed in many distri