The Washington herald., 1909-07-20
A New Programme of Borrowiny

The Republican party used TO boast. IN
its platforms. OF annual. reductions Of the
public debt For many years the political
dread Of a bond issue in time Of peace
/ has been proveTbial. and in general #
may he said that American tradition has
strongly supported the policy OF not ac-
cumulating a large public debt. and OF
paying or as rapidly as possible the obn-
cations incurred by our several wars.
This policy is now to undergo a partial
change. An Immense addition will be
made TO the public debt in order 10 pav
! for the construction Of the Panama Canal.
and programme Of borrowing money 10
/ construct great public works definitely en-
J tered upon. In all probability this policy
involves a permanent public debt-a con-
dition OF the national finances which.
though opposed to American tradition. is
strongly favored by important financial
/ interests.
So far as paying for the Panama Canal
is concerned. We have no objection to
offer 20 the bond scheme. The enterprise
is Of such magnitude that It cannot be
carried on by appropriations from current
revenues. and the length OF time required
for its completion, as we'll as the improb-
ability that it viii yield any income for a
decade. indicate the propriety and desir-
ability OF borrowing canal funds, and so
dividing with later generations the ex-
pense Of construction. It should be
pointed out, however, that these consid-
erations do not weigh so heavily with our
legislators as the more immediate neces-
sity Of recouping a Treasury nearly
empty as the result of reckless appropria-
tions made at a time when it was well
known that there would be no money to
meet them. II there had been an over
flowing Treasury, as there has been at
times, would Congress have been willing
TO authorize the Issue Of nearly S4O0. 900. 900
in bonds. TO run for a hale century, at n
higher rate Of interest than the Treas
ury has been accustomed Of late years to
cies Of the Treasury, due largely to hap
hazard inanciering at the Capitol. could
have forced our statesmen to so distaste-
ful course as the issue Of bonds in time
of peace, with the government revenues
at high point. ostensibly fol-. canal build
ing, but really to save the Treasury from
bankruptcy.
The indirect way in which this new
policy Of borrowing funds has been intro
duced is an unanswerable argument. If
any we're needed. for the reduction Of
our national financiering to some sort Of
system by which both ends may be made
to meet without an alienation Of alarm
Ing deficits and almost equally alarming
surpluses. remedy must be found other
than spending the surpluses and borrow
ing money to meet the deficits. It may
be had in an adjustment OF expenditures
TO revenues In the budget and IN the I'm
position OF taxation that may be easily
reduced or increased, as the necessities
of the government require. President
Taft and his Secretary OF the Treasury
are working toward this consummation.
and, we are happy to say, similar efforts
are making at the other end Of the Ave
nue. which should be rewarded with sue
cess. In so rich a country as this
Treasury deficit is an absurdity Of which
we should be heartily ashamed, reflect
ing. as it does. both upon our material
and our intellectual resources. Nothing