The Chickasha daily express. (Chickasha, Indian Territory [Okla.]) 1899-current, 1917-05-31

(By Frank r. Wilson, Federal Farm
Loan Bureau, U. S. Treasury Depart
ment; written for the United Press)
Article No. 8.
Washington, May 30.-Floating a
seven billion dollar Indebtedness with
in a few weeks sounds colossal.
To the minds of those familiar will,
the history of large governmental fl
nancial transactions, it suggests dire
possibilities. Heavy borrowing by ma
tions has often resulted in price infla-
tions and greatly added cost of living.
Such result might be predicted for
the Liberty Loan were it not for the
fact that precautions against these i'll
effects have been taken.
Uncle Sam now practically is in the
position Of the boy who can eat his
candy and keep it. While borrowing
to an extent greater than any nation
has ever borrowed at one time, he is,
at the same time, providing geratly in.
creased stimulus to business within
his own realm.
1t is not as if this seven billion dol
lars were to be brrowed and taken out
of the country for investment else
where. This is to be merely transfer
of credit, one of the conditions of the
credit extended to foreign nations he
ing that the money borrowed from this
government must be spent for supplies
within this country. SO when the
United States lends two hundred mill
lion dollars to Great Britain, this gov
ernment merely assemblies the credit |
of its people and lends that credit to
Great Britain to enable Great Britain
to enlarge its operations of buying our
supplies. So while we are aiding Great |
Britain, by giving her lower interest
rate than she otherwise could get, we
are aiding ourselves by providing new
demands upon all of our Industries,
new demands for labor, larger require
ments Of raw materials and greater
market for food supplies.
The administration has profited from |
the costly experience of other nations
by outlining a policy which provides
for a combination of borrowing and
taxation in order to keep down the bad
effects usually resultant from large
The most pronounced i'll
effects that have come from large Dor
rowing have come where nations have
raised all Of their war revenue by the
sale of bonds. Wherever a nation has
undertaken to raise its taxation proper
tionately with its rate of borrowing
this tendency toward price initiation
has been reduced. The secretary of
the treasury has made suggestions to
for an increase in taxation
which would produce nearly two bill
ion dollars annually. Germany has
raised practically all Of its war revenue
oy selling bonds and has added very
little to taxation. Great Britain has
the customary accepted policy
If making increased taxation take care
If at least the interest on increased
But this tendency to minimize price
is not the only saving grace
n the new program of war finance.
rhe secretary of the treasury, instead
II calling for subscriptions to the en-
ire loan at one time, called for only /
wo billion dollars at once. His object {
vas, manifestly, to distribute the shock !
Il the loan. Such a program makes {
t possible for this money to be sub. (
cribed; to be loaned to European {
to be expended for supplies q
n this country and to be again dis &
TO its normal channels of bus y
ness before the next installment is a
allied for, Such plan makes it pos. {