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Show Treasury Secretary to Return to Private life-; . in Near Future. r - ! ' j William G. McAdoo. WASHINGTON, Nov. 23. Giving; necooslty for replenishing hlo personal ; fortuno ae 'a reason, William G. Mc-l Adoo has resigned as secretary of the; treasury and director-general of ral!- rondo. Hlo resignation ha3 been ac-' coptod by President Wilson. , Aa occretary of the treasury Mr. Mc-, Adoo will retire as soon ao a successor hso been chooon and has qualified. He! will rollnqulsh his position as head of tho government controlled railroads ( January I, unless a director has not! then boon selected. Mr. McAdoo 6ald he had no idea who hlo successors might be, and addcO that he would make no recommendations recommenda-tions to the president. Regardless of the appointment to tho treasury post, It Is considered improbable im-probable that there will bo any great change In future fiscal policies of the government. War bonds of short maturities, ma-turities, to the sum of about eight billions bil-lions probably will be floated In 1919 as planned by Mr. McAdoo and his treasury advisors. Before he leaves the treasury, Mr. McAdoo will prepare recommendations to congress for leg-i Islation to change tho war finance corporation cor-poration Into a "peace finance corporation" corpora-tion" thereby permitting it to financo Industries during the readjustment period. The future of the capital Issues Is-sues committee Is uncertain and tho attitude of Mr. McAdoo's successor may have much to do with Its course. As for the railroads, the new director-general doubtless will have much to do with the formulation of policies for future management. Mr. McAdoo recently Indicated that he had planned to contlnuo ponsolldations and other reforms looking to efficient operation, regardless of the fact that the war emergency Is over. Opposition to this courso now appears to be developing, and tho Issue of whether railroads are to remain permanently under government govern-ment direction and even'govornment ownership, or bo returned shortly to thoir prlvato owners, Is taking form. Thla lesuo Is a principal legacy which Mr. McAdoo will leave to his successor. succes-sor. WASHINGTON, Nov. 22 William Qlbbc McAdoo, secretary of tho treasury, treas-ury, director-general of railroads and often diocuosed as ono of the presidential presi-dential possibilities of 1920, has rc- (Continued on Page -1.) McAdoo Leaves Cabinet (Continued from Page 1) signed his offices to return to private business. President Wilson has accepted hie resignation. Mr. McAdoo will give up the treasury portfolio as soon aG a successor has been selected. He wished wish-ed to lay down his work as director general of railroad by January 1, but will remain if the president has not then chosen a successor. Upon tho new secretary of the treasury, whoever he may be. will devolve de-volve the task of financing the nation through tho transition period of war to peace, which probably will include at least two more Liberty loans and possibly also a further revision of the systom of war taxation. To Replenish Fortune Letter between President Wilson and Mr. McAdoo, made public today witli the announcement of the resignation, resig-nation, give Mr. McAdoo's reasons for leaving tho cabinet solely as a necessity neces-sity for replenishing his personal fortune for-tune and express the president's deep regret at losing his son-in-law from his official family. Mr. McAdoo's letter of resignation, dated November M, follows: "Dear Mr. President: 4 I "Now that an armistice has been signed and peace is assured, I feel at liberty to advise you of my desire toj return, as soon as possible, to private I life. "I have been conscious for some time of tho necessity for this stop, but, of course, I could not consider it While the country was at war. "For almost six years I have worked incessantly under the pressure of eat responsibilities. Their exactions u.Sttf drawn heavily on my strength. The inadequate compensation allowed by law to cabinet officers (as you know I receive no compensation as "director "di-rector general of railroads) and tho very burdensome cost of living in Washington have so depleted my personal per-sonal resources that 1 am obliged to reckon with the facts of th0 situation. "I do not wish to convey the Impression Im-pression that there is any actual impairment im-pairment of my health, because such is not the fact. As, a result of long overwork I need a reasonablo period of genuine rest to replenish my energy. But more than this', 1 must, for the sake of my family, get back to private pri-vate life, to retrieve my personal fortune. for-tune. Neglected Private Affairs "I can not secure the required rest nor the opportunity to look after my long-neglected private affairs unless I am relieved of my present 'responsibilities. 'responsi-bilities. , "I am anxious to have my retire- I " ment effected with tho least possiblo inconvenience to yourself and to the! public service, hut it would, I think.' be wise to accept my resignation now as secretary of tho treasury to become be-come effective upon the appointnlent and qualification of my successor, so that ho may have the opportunity and t advantage of participating promptly in tho formulation of the policies that, should govern tho future work of the treasury. I would suggest that my resignation as director genoral of railroads rail-roads become effectivo January 1, 1919, or upon the appointment of my successor. "I hope you will understand, my, dear Mr. President, that I will permit nothing but the most imperious demands de-mands to force my withdrawal from public life. Always I shall cherish as the greatest honor of my career tho opportunity you have so generously given me to serve the country under your leadership in these epochal times. Affectionately yours. "W. G. McADOO." The president's letter of acceptance, dated November 21, follows:' President Regrets "My Deaj Secretary: "I was not unprepared for your letter let-ter of tho l'lth, because you had more than once, of course, discussed with me tho circumstances which havo long made It a serious personal sacrifice for you to remain in office. I knew that only your high and exacting sense of duty had kept you hero until the Immediate tasks of the war should be over. But I am none the less distressed. dis-tressed. I shall not allow our intimate inti-mate personal relations to deprive me of the pleasure of saying that, in myj judgment, the country has never had an abler, a more resourceful and yet' prudont, a more uniformly efficient secretary of the treasury; and I say this remembering all the able, devoted and distinguished men who preceded you. I have kept your letter a number of days, in order to suggest, if I could, some other solution of your difficulty than the one, you havj "felt obliged to resort to. But I have not been able to think of any. I cannot ask you to make further sacrifices, serious as the loss of tho government will be in your retirement. I accept your resignation, resig-nation, therefore, to take effect upon the appointmont of a successor, because be-cause in justice to you I must. world Admires Skill "I also, for the same reason, accept' your resignation as director general of railroads, to take effect, as you suggest, sug-gest, on the first of January next, or when your successor is appointed. The whole world admires, I am sure, as I do, the skill and executive capacity with which you handled the groat and complex problem of the unified administration ad-ministration of the railways under the, stress of war uses, and will regret, as! I do, to see, you leave that post just as the crest of Its difficulty is passed. "For the distinguished, disinterested disinterest-ed and altogether admirable service you have, rendered the country in both posts, ntid especially for the way in which you have guided tho treasury through all the perplexities and problems prob-lems of transitional financial conditions condi-tions and of the financing of a war which has been without precedent alike in kind and in scope, I tharfk you with a sense of gratitude that comes from the very bottom of my heart. Gratefully and affectionately yours, "WOODROW WILSON." Mr. McAdoo made the announcement of his retirement at ono of his weekly conferences with a score of newspaper i men touight in his private office at the ! treasury. The men for an hour had been discussing with him questions concerning future policies of the treasury treas-ury and railroad administration and were about to arise to leave when Mr. McAdoo, seated at his desk, remarked casually: "Now, gentlemen, I havo just ono other little thing to say which may be of Interest. I am retiring from public life." i This came so utterly unexpectedly that none of the men uttered a word of comment and the littlo map and paper bestrewn ofilce which has served serv-ed as tho secretary's work room for more than five years was still until Mr. McAdoo, in his usual tone, explained ex-plained further: "Copies of tho correspondence with tho president will explain the reason why I have been compelled to take this action and thero isn't any other reason why I did it." Just a few minutes before the press conference, Mr. McAdoo had called in his treasury advisers and broken tho news to them. Utmost surprise was expressed by his co-workers. There had been only one rumor recently of the possibility of Mr. McAdoo's resignation, resig-nation, and that was to tho effect that ho might be appointed secretary' of war, while Secretary Baker went to Europe as the president's emissary. That report was specifically denied at the time and it was said that Mr. McAdoo Mc-Adoo had no immediate intention of quitting as secretary of the treasury or as director general of railroads. Mr. McAdoo receives $12,000 a year as secretary of the treasury, the uniform uni-form salary of cabinet members and nothing as director general of railroads. rail-roads. His family expenses aro known to have been heavy in the last few years, although since the war he has taken almost no part in the little capital capi-tal society that remained. Repeatedly, Repeated-ly, the secretary has referred to small salaries of government officials, though he did not refer to his own case. In fixing the salaries of his assistants as-sistants in the railroad administration, ho allowed heads of divisions $25,000i a year and oven the minor assistants received $12,000 or $15,000. Secretary McAdoo' is the fourth mombor of tho cabinet to-resign. William Wil-liam Jennings Bryan, tho president's secretary of state, at the beginning of his administration, was the first and Lindley M. Garrison, secretary of war, was the second. James C. McReynolds, attorney genoral, gen-oral, resigned to take an appointment to the supreme court Aside from those three changes tho president's cabinet stands tho same as it did six years ago, and his'frionds say he has taken a. great deal of pride in referring to it as a team. At tho opening of his second term tho president asked all the members mem-bers to remain. The rise of Mr. McAdoo to a place of influence hn tho administration which many havd declared was second only to the prosidont, was very fast. As a southern lawyer who had been interested inter-ested in transportation schemes in southern cities he went to New York and accomplished the then almost unbelievable un-believable feat of successfully tunneling tunnel-ing the Hudson river for electric trains. One of the first men to suggest the scheme if not actually the first was adjudged a lunatic and he lived to. see the project an accomplishment. His name has been forgotten in the success of the achievement. When .Mr. Wilson, then governor of NTcw Jersoy, became a presidents probability, Mr. McAdoo was practically practical-ly unknown to him. But Mr. McAdoo took a leading part in his campaign, as vice chairman of the Democratic national na-tional committee, and much of tho time as acting chairman, and also as chairman of the finance committee. Tho president-elect chose him for secretary sec-retary of the treasury and many of his admirers have pronounced him tho most capable since Alexander Hamilton. Hamil-ton. Of course he has not been without his critics. At the outset of the president's first term It was a pass time of observers of public affairs to refer to "the strong man of the cabinet" generally speaking speak-ing of two or three. It is no reflection' on Mr. McAdoo to say that his name was not then so early included, but It soon became so. It was no secret that tho president depended on his advice and judgment more and more on affairs af-fairs which ranged outside the treasury. treas-ury. He soon began taking a prominent promi-nent part in shaping tho administration's administra-tion's legislative policies and he invariably in-variably had the backing of the president. presi-dent. Possibly that brought him into tho field of Democratic- presidential possibilities when they were being discussed, but so far as anyone knows Mr. McAdoo never has expressed himself him-self on that subject, but has devoted his attention to serving his chief. It has been well known in Washington Washing-ton that Mr. McAdoo, a man of comparatively com-paratively small personal fortune, has felt that sooner or later he must replenish re-plenish his resources. Friends at various var-ious times have expressed some apprehension ap-prehension for his health for he has been an indofatigible worker and while the duties of secretary of the treasury' ' in times of world war probably would : have taxed tho health and energy of anyone, he did not hesitate to tako on 1 the railroad administration and found 1 timo beside to take a prominent place in the president's councils on other subjects. While on a recent trip in tho west ho fell from a horse and broke a rib but his friends say that had no ef: feet whatever on his general health. Since the European war broke out In the fall of 1914, Mr. McAdoo's department depart-ment has faced many big economic problems. Lately, the tremendous Liberty Lib-erty loans and corroiary problems of financing war expenses have been his principal concerns. Mr. McAdoo stood out strongly against all treasurv advices ad-vices in May, 1917, and maintained that two billion dollars was not too S much to ask the American people to give in a single loan. Others argued that a half billion, or at most a billion, was enough. As a leading builder of the federal reservcsystem, an early advocate of a great government-built merchant marine, ma-rine, and a developer of the federal farm loan system,, ho was known j prominently. He played a prominent part in pre- ; paring the income tax law, and in de- . veloping measures to permit a flexible I financial arrangement to tide the na-' na-' tion over rough periods of financial history during the war. He placed government funds in banks of tho west and south to facilitate the movement of crops and later arranged the distribution dis-tribution of government funds more uniformly throughout the country. Four days after the European war started, Mr. McAdoo asked and obtained ob-tained special legislation to permit the issuance of a half billion dollars of omorgency currency through national banks to tide the na'tion over this critical criti-cal period. He also recommended en- actment of the measure permitting tbo government to write war risk insurance' insur-ance' on ships and cargoes and lives of seamen, and tho bureau administering this later took charge of paying allotment allot-ment and allowance checks to dependents depend-ents of soldiers and sailors, and tho administration of government life Insurance In-surance for. these men. Mr. McAdoo's department had charge of the collection of four billions m taxes last year, and the raising of nearly eighteen billions in Liberty-bonds Liberty-bonds and war savings within the last nineteen months. About eight billions in loans to allies have been distributed at his discretion since the United States entered the war. Pie also was tho directing spirit of the capital issues is-sues committee, the war finance corporation cor-poration and other war-time treasury agencies. Mr. McAdoo was married May 7, ; 191-1, to Eleanor Randolph Wilson, - (i daughter of the president, in the White House They have one daughter, Mr. 1 McAdoo also has three sons and three I daughters by a former marriage. The 1 three sons are now serving in the navy. 1 |