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.

RED CROSS AND OTHER ORGANIZATIONS.--The American Red Cross Society,
formed for the relief of suffering through war or othe