The Redwood gazette., 1917-11-21
PATRIOTIC ECONOMY.
(Bv Everett Morss)

lTHE necessity for patriotic economy will be
/ evident if we think of finance in terms Of
= labor instead of in dollars. We have nat
ural resources and we have capital invested in
the tools of production but even with these facil-
ties our productive capacity is limited by the
| supply of labor. BY labor we mean the personal
service whether of brain or of Drawn, of the
forty million Of us who are engaged in gainfu1
occupation.
To carry on the war we shall spend at least
twelve billion dollars per year, or thirty-three
million dollars per day. This is as much as
Great Britain is spending and fifty per cent
more than Germany is spending, and the figures
are so huge that few Of US appreciate what they
really mean.
Europe is already so deeply in debt that she
may never be able to pay, and we are on the
road to the same condition Balance of trade
statistics indicate that we have made an extra
profit from foreign business since 1914 of five
billion dollars, or about two billion dollars per
year. The effect Of this in enrichng the coun-
try is suggestive Of the result Of three years of
impoyerishment at the rate of eight billion dol
lars.
Our normal annual savings are about four bill
lion dollars, and not only will our war expendi-
ture absorb all of these savings, but we must
find eight billion dollars in addition. During the
past three years our present allies have obtained
much assistance from US, but as there is no coun-
try to whom we can turn we must carry our
burden alone.
Our savings go into public and private inn
provements, including the extension of business
enterprises. These savings will not be available
for war until we stop federal, state, municipal
and private improvements; until we forbid all
issue of securities except under federal license,
following the example whereby England reduced
the issue Of industrial securities from $468,000,
600 in the first half of 1914 to $11,O0OOO0 in the
same period Of 1917.
The danger of food famine has been brought
home to us and we are making real effort to
reduce consumption, though our efforts to IN
crease production are being seriously handicapped
by the high price of labor.
Immediately after war was declared the Presi-
dent warned the Country that everyone should
produce more and consume less The idea that
business was to be suddenly reduced by wave
of economy was shock to business men and
the cry "business as usual was spread over the
Country and caused the Presidents appeal to be
forgotten Not only are people spending US
ual, but many conscientously believe it their
duty so to do.
Every dollar spent means the consumption of
labor. We shall not be far wrong if we say that
every four dollars spent consumes days labor,
and that every twelve hundred dollars spent con-
sumes years labor. A war expenditure Of
twelve billion dollars will consume the labor of
ten million people; twenty-five per cent of our
total labor supply This added demand comes
during the greatest labor famine in our history,
which has increased commodity prices eighty
five per cent since 1914.
We have reached the point where the ncreas-
ing demand reduces the efficiency of labor and
thereby reduces the supply, and we are facing
further rise in commodity prices, perhaps to
exceed present conditions in England, where
prices are up one hundred and twenty per cent.
The most effective remedy is to decrease con-
sumption, and it is imperative that every one
should make drastic reduction in personal ex-
penditures The example must be set by the rich,
but every man, woman and child must be drawn
into the movement until patriotic economy be
comes the greatest fad the county has ever known.
Our young men who try to avoid military SER
vice are "slackers." Every one of US who will not
economic to help the war is Stacker Who
will fail to spend less when he realizes that ev-
cry four dollars saved is a days labor contrib
uted to the war? It is not question whether
your income justifes an expenditure, but wheth-
er the country can afford to let you spend.