Forest City press. (Forest City, Potter County, D.T. [S.D.]) 1883-19??, 1916-07-26
Destruction. Debt and
Payment After War

pay the interest on these loans. That
may be so, but If it is, it is certain that
the payments will be made to people then
living. and that their use of the capitaA
Will react upon the entire community.
In discussing the Indebtedness the fact
is commonly overlooked hat the payment
OF Indebtedness does not e~xtinguish the
capital transferred or involve an economic
loss. IL we We're to conceive of these pay
ments as required to be somehow made
TO the inhabitants of another planet, with
or OF the products of the country to the
value of these payments as regularly
heaped up and burned. then we would
have the idea that is generally accepted
as 70 the burden of this Indebtedness. But
nothing of this kind will occur. The cap
i'a' raised by taxation will flow from tho
pubic INTO the treasury. and from tho
treasury. back to the people, practically
undilniniShcd.
This proposition should not he con-
fused with the fallacious excuse that is
often given for wasteful extravaganza, to
WIT: that 1T gives employment to wage
people and puts money i'm circulation. In
the latter case the expenditure represents
an economic loss because the wage earn
ers are not productivity employed. The
war indebtedness also represents :.n eco
homie loss; but the loss occurred when
the proceeds of the loans We're expended.
and does not occur again when the loans
are paid off.
The war loans. for the most part are a
ing the war. and If they are held at home,
and paid off by savings. the countries will
be richer thar before the war.
If every taxpayer held !: corresponding
proportion of the bonds, his income and
outso on account of the debt would can
eel. The problem of the Indebtedness is
that of ewing taxation in such a man
ner that it will not fall unfairly upon any
portion of the community. but that all
viii he speedily reimbursed by the return
flow; The portion Of the public which
return flow direct. but if all payments
upon the loans are new savings, which
did not exist before the war. then the in
Ncstment OF this capital in productive in
d%ustries is bound to react favorably upon
All classes. so that q moderate degree of
taxation can be paid by all without be-
ing worse off than before the war. The
taxation will amount to enforced saving
for the capital fund. and if wisely applied
VIII help the country to recover from the
FAILURE to make normal progress during
the war.
If this view is correct. recovery from
the war will be more rapid than has been
anticipated. and there is no reason why.
after order and confidence are restored.
enterprise and industry should not go on
IN these countries about as before.
The critical period will be at the end of
and millions of men must find their places
In civil life. and while there is stili be-
the state of Industry and trade will be.
The problem will he to integrate the In
dustries. not only at home but through
oul t"e Wortu, ana get them on q mt
tually supporting basis, for every man
who has work VIII he able to bug the
products OF others.
Unfortunately the animosities Of the
ton OF many former trade reiationshiDs
and legislation may increase the con
fusion and intensity the struggle for mar
kets This confusion and uncertainty.
and the apprehension which it ~epgeaders.
creates the real danger OF indztriaI pros
ration after the war. rather thar lack oe
CADIId or nllytn0 nOw0r SVhn Ass-:.~-
power OF every country is in it's eW1
powers OF production.