Omaha daily bee., 1917-05-23
So Are Tdres
Bg Frederic j. Haskin

Washington, May FISHERMAN adequately de-
scribed war, but he forgot to say anything about
paying for it. Every morning the ways and
means committee receives large mail bag full
OF remonstrances, showing that taxes are
also-panful.
I'VE are in entire sympathy with the prepared
ness program" writes large moving picture cor
one great means Of entertainment" The rest
Of the bill is all right" declare the nations soap
makers in unison, but soap Is a sanitary neces-
sty that should be kept within reach OF the
poor" "For Heavens sake. don't make gasoline
any hgheri" telegraphs distressed middle west
erner. who was evidently laboring under the i'm
preston that tax on gasoline was included in the
bill
From the poor man himself-suddenly, become
the conscientious responsibility Of all large man,i-
facturers--no protest has been heard, although 5
per cent OF the taxes included In the bill directly
affect him. This fact has naturally created great
deal of comment in congress, which has tried to
account for it. One representative suggests that
it is because the poor man is too busy earning
living to pay much attention to congressional leg
isation and another suggests that he is too pa
triotic, but another reason given by Philadel-
phia laboring man doubtless is nearer to the
truth "Oh, what's the use Of kickin'" he asked.
We've got to pay it anyway"
statement which leaves no room for argu-
ment A modern war is expensive and we have
got to expect taxes Of every kind Our last great
est wharf.-the civil war-cost the nation only So
1o0000000; now. for the first year Of this war
nearly nine billions dollars will be needed OF
ton and seven billion by bonds,
It costs great deal every year to run the
machinery Of the United States government.
With the exception of the United States patent
Office no bureau OF the government is self-sup-
Tb;e he MT reouired RI
current expenses is estimated at $l,57O,00OOOO.
A billion dollars is tremendous sum of money.
II you were paid dollar minute for working
night and day for every day during the week; in.
GLIDING Sunday, it would take you two thousand
years to accumulate billion dollars Yet one
year OF war will cost this nation nine billion doll
lars
The United States now owes debt OF $97l,-
100000 left over from the Spanish American war,
while the aggregate bonded Indebtedness of our
states counties and municipalities is nearly four
billion dollars Add to this the new seven billion
debt of nearly twelve billion dollars. Congress
has decided that it is fair to make the present
generation pay its share Of the expenses.
OF all the belligerents of Europe, Great Brit
aims system of war revenue seems to be the most
favorable for this nation At the beginning of the
war England still owed $3,5OO,OOOOOO debt on its
Napoleonic wars. With large credit however,
it was able to borrow money at fairly low rates
of interest, which Parliament proceeded to do up
to nearly twenty billion dollars. Some OF this
money England reloaned to its allies In the
meantime taxes were increased to such an extent
that the people are now paying rs per cent OF the
war expenses. The American war revenue bill is
based almost entirely on the English plan. Eng
land imposed additional taxes on incomes and ex-
cess profits. So does the United States. Eng
land also taxes moving pictures kilograms TO-
bacco, jewelry and railroad transportation. So
does the United States.
Germany is financing her war entirely on
bonds AT the beginning of the war her indebt-
edness was $ll72000000 although that OF the
German states was $3,S46,0QO00o. She started
floating war loans Immediately, which she has
kept up until her national debt is now above hi.
charges exceed $700,000,0OO. In this. connection
it is interesting to note that within the past few
weeks the German government is reported to nave
imposed its first war taxes
OF all the belligerents France has suffered the
greatest financial distress in conducting her war.
In the beginning the National bank loaned the
government over billion dollars in the form of
note circulation issued against the government
obligations deposited with the bank This was
supplemented by other loans from various
sources, although the fact that Germany captured
and held large portion Of French mining re-
sources early in the war made it difficult to float
loans of any great size. No taxes were levied I'M
til the war had well advanced, but her citizens
responded nobly to every call of the government
for gold and foreign securities. With debt OF
six billion dollars at the beginning OF the war,
France has nevertheless been able to borrow nine
billion dollars additional to pay her tremendous
war bill, which now approximate twenty-five
million day. The interest charges on this money
alone are appalling for so small country.
With the combined wealth OF $2l5,0O0,0 100000,
the allies have borrowed nearly forty-two billion,
while the central powers with combined wealth
OF $ll3000000,000 have borrowed nearly fifteen
billion dollars. The fact that all the countries of
Europe possessed in the neighborhood of thirty
three billion dblars in foreign securities at the
beginning OF the war has practically saved their
financial necks during the past two years OF
money scarcity.
The policy of the United States has always,
been to pay off its debts as soon as possible. The
debt resulting from the revolutionary war was
S5,000000, and this was more than cut in half at
the beginning of the war of 1872. This war
brought a second war debt of $127000,000, which
was entirely paid in twenty years, while the Mex
lean war debt OF $68000000 was reduced to $685.
100000 when the civil war started. At the end
of the civil war our national debt was $751;
100000 but this was reduced to $5S5,000,000 by
1892. The Spanish-American war and the hnanc-
ing OF the Panama canal left US with another debt
of 81 ,046000000 to pay off, and this had dwindled
to 1911 100000 when this war broke out.