Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1917-06-21
THRIFT, BUT NOT PARSIMONY

A government, In peace or war, IL maintained out OF
the earnings Of its people. II current earnings in excess
Of what 10 needed for the sustenance Of the people are
insufficient, either the government must run short or It
must dip into the aocumulations Of former years. In that
case the country is running behind, growing poorer.
This is a time of extraordinary need. It is therefore
a time for extraordinary thrift. Inasmuch as the finan-
cil needs Of our government are unprecedented, and
these needs must be met out Of the difference between
the earnings Of the people. past, present or future. and
their necessary expenses. it follows that we need now,
moro than We have ever needed before. a wider margin
between income and ordinary outgo. We need to produce
more and to destroy less.
But we need to keep in mind the distinction between
thrift and parsimony. Thrift 10 constructive. Parsimo-
ny 10 destructive. The thrifty man Is the one who Gre
ates more than he consumes, who labors intelMsently and
ccnstructively and spends wisely. The parstmontous man
is the one who creates nothing, but seeks merely to hoard
what has already been created. The longer the ono lives,
the richer the world is for his living in it. The longer
the other lives. the poorer the world becomes for his
presence, for, SO long as he does not produce. no matter
how little he consumer. that little is a dead loss.
Taxation 10 the seauestration by the government Of
some portion Of the profits Of the people. Reduced to It's
ultimate elements, that 10 what all taxation amounts to.
for, no matter how the burden may be shifted. nor how
many hands may be engaged in passing it along, 1t is
profits, and profits only, that can be taxed. The business
that makes no profits may. for a time, pay taxes out OF
the profits Of former years, but in time those will be ex-
haustsd, and presently the business must stop.
Take the matter of the Liberty Loan as an illustra-
ton. That fund has been very largely subscribed in small
sums by the common people. A considerable part of the
money will come Immediately out Of former earnings.
But also a very large proportion Of the loan itself. and
of the taxes which must be levied to meet the indebted
ness. Is expected to come out of current earnings. Be-
cause the demand will be greater the earnings must be
greater and the expenses relatively less. suppose that all
over the country the people were to undertake to meet
these and other demands which will come by discontinue
ing the spending Of money for anything beyond the ac-
tual necessaries Of life. Let the people who had intended
to build houses not build them. Let the farmers who
had intended to fence their fields, and drain their lands
and build new barns and stbs drop all their plans. Let
the whole country quit building bridges, and improving
roads. and paving streets, and planting orchards, and do
ing constructive work of any kind beyond the imperative
demands Of the immediate present. The stream Of our
economic life would become a stagnant pool. The ex-
cess earnings, out Of which the demands of the govern
ment should be met, would have disa ppeared. and the
whole country would be eating UP its substance, and
retrosrading at the rate Of millions Of dollars an hour.
For obvious reasons business cannot be as 1t was be-
fore the war or as 1t will be after the war. Certain mod
ifications are necessary. But unless there is more bust
ness Of a really constructive character we will face eco
nomic disaster. 1t is a time for thrift. but enphatically
not for parsinony. 1t is a time for industry, for inten-
sive application, for the elimination of waste and the
conservation of force. And, the more thoroughly these
facts are understood and applied, the lighter will be the
financial burdens Of the war.