The Canon City record with which is consolidated the Canon City cannon., 1917-11-08
RESERVE
SAVED POSSIBLE
MONEY TROUBLE
CLARENCE c. ,tAMLiN DECLARES
THAT COUNTRY CAN RAISE
TWICE THE 81 BILLION RE.
SOURCES OF COUNTRY, lF NEG
ESSARY.

RADIO Springs in his address before
the University Club last Tuesday
night, said in part:
There can he but one outcome OF this
war and that is the downfall of mill.
tarism. But we must not deceive our
selves into believing that the task be
fore US is au easy one. because It may
and probably does mean the expend-
iture of blood and treasure to en- ex.
tent not dreamed of by us today.
IF the financial side of the war is
the least interesting. surely it is not
Of the least importance. To raise the
stupendous amounts of money neces.
sary to copduct this conflict will test
our ingenuity and our patriotism. but
our resources are 30 tremendous that
il these questions involved are met in
diligently this war can be financed
without serious embarrassment.
THE combined resources OF the ma
tional and sta'e banks. including trust
now thir,y-seven billions OF dolla-s
At the outbreak OF the Civil war the
combined resources of the banks were
estimated to be $500. 100000. And
yet; with these limited banking re-
sources the Union government raised
three billion dollars OF bond sales. or
twice the banking resources OF the
county. Upon the same basis. we
would be able to raise seventy-four
billions through government loans.
mo one but fool or college pro
I fessor will. Mt this time. attempt to
: say how much money will be resuired
to wi nthis war But We must be pre-
pared to come through with the last
dollar IL that las. dollar is necessary
TO spell success.
Government finance is an Intricate
and delicate thing In times of peace
il is 80 closely related to our general
business and commercial organization
tina; the prosperity OF the entire coun-
I try depends on the wisdom or unwis
/ dom OF the fiscal measures adopted by
the Congress. In war times. when vast
unusual expenditures. and when all
business Is compelled 10 operate un.
der abnormal conditions. the problem
: is yet more delicate. for this country
never thinks war until war comes. and
when II does come we find ourselves
yoyaging on uncharted seas.
During the Civil war the credit of
the government sank to so low an
ebb that the issuance OF fat money
In the form OF greenbacks became
necessary and II was not until a com
paratively recent date that the coun-
try succeeded in overcoming the dis.
astrous results of this dubious but at
tie same time necessary cxpedient.
for not only did the financial structure
of the country suffer from this resort
to a fiat currency but other expert
men's in governmental finance OF sim.
ar character. equally vicious and less
justifable. followed In its wake.
The panics of 1893. 1901 and 1907
can all be directly traced to the ex.
periments which our government has
indulged in along the lines OF q fat
currency and to an inncxjbic banking
system which was wholly unable TO
respond to any unusual demands.
Ever since the civil war the soft
money propaganda has becn the one |
to which the political demagogue
could always resort as panacea for
all OF our national Ills with confidence
thar he could secure through 1t sub. !
stantial following. and there have
been those among our more consesva
tive statesmen who have been tcmpor.
arily misled by the ''sof, money" will
Of the wisp.
Fortunately, we can say with fome
assurance that these days OF expert
mcntation with questionable forms c'
government finance have passed.
Through the Federal Reserve system
our banking resources have been co.
ordinated and consolidated. the vol.
ume OF our money has been rendered
mobilized and conserved. and today
we have y financial system which will
not only be able 10 withstand all the
demands OF pence but which is show
Ing itself fully able TO meet the shock
OF war.
1T ia not going too fnr 10 stnte that
this country would have bscn wholly
unable TO meet the financial demands
Of this world conflict had II not bccn
for tho reforms recently made In our
nnnncisl ryntsn. Thesc reforms had
their bvRtpning In the Frccland Aid.