The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-04-05
If a Large Faction of Sup
porters SWeIIs Into a Ma
iority a Big Increase in
Debt Would Result.
COUNTRY'S EXPENSES
MUST BE CURTAlLEO
Part of Program of Water
ways Congress May Be
Carried Out as It Would Be
A Great Benefit.
BY Sheldon S. Cline.

Washington. April 5.-If what is at
present very large faction in congress |
can be increased to a majority. two
billion dollars of national indebted |
ness will be rolled up in the next
twenty years. This faction propos-
es to issue bonds to an amount OF fiji |
ty million dollars each year and to ex-
pend the proceeds in improving In
land waterways.
The idea is not a new one. 1t has
been advocated. in some degree or 9TH
er. for more than a generation, but 1t
was given standing by the waterways
congress called by President Roose-
welt. What was originally set down as
the dream Of Missionaries. now has
standing and the endorsement of prac-
teal men Of affairs.
Must Cut Down Expenss.
When the waterways congress first
proposed this fifty millions year ex
penditure the idea was roundly de-
nounced by most of the influential
men in congress. But they have been
thinking since then. The condition
of the national revenues has furnished
lot of food for thought. 1t Is be-
coming palmer every day that. so far
as concerns current revenues, instead
of its being possible to enter upon any
enlarged program Of waterways Inn
provement there is going to have to be
a curtailment Of the program of the
past.
Now, no attempt is made to dispute
the fact that to carry out, at least In
part. the program of the waterways
congress would be the very best Of bus
mess. The improvements would pay
for themselves many times over In .
generation in increasing the wealth OF
the people. But there isn't the remot-
est possibility of seriously undertak-
ing the work and paying for 1t out OF
the current revenue of the government.
And rs future generations would large
ly get the benefit, the argument that
future generations should foot the bill
makes q powerful appeal. Opponents
of the plan argue that even the inter
est charge on SO stupendous a loan
would be too heavy q tax on the reve-
nues. Were the loan noated at three
per cent. they point out. the annual
interest charge would be sixty millions
when the Indebtedness reached two
hundred millions.
| Answer Objection.
Advocates of the plan have an an
swer to this objection. In the first
place they contend that the bonds
would have ready sale at two per cent
But even three per cent does not
frighten them. They argue that the
first of the works could be completed
in five years. at which period the bond
issue would amount to only $25O.O0O.-
600. with an interest charge at three
per cent. Of $7.5O.OOO. 1t Is declared
that the earnings from this completed
work by means of tolls would more
than pay the interest charges. SO that
after the first five years the program
would practically be self-sustaining SC
far as interest was concerned. In
deed. they produce figures to show tina,
the earnings from the improvements
would in time wipe out the entire deb'
and would then become a source of act
ual revenue.
Another very persuasive argument II
that the expenditure of another fiftJ
millions a year in public works would
out lot of men at work and be highly
conducive to prosperity. The figures
they show as the net addition to the
nations wealth when the proposed
works are completed. are dizzy.
1t probably will require a good deal
of work to convince congress that the
government ought to embark upon any
such awe-inspiring program. but it I'M
deniably is true that the idea is making
Roadway with the legislative branch Of
the government.