Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1917-04-16
Consumption Of Money

ConScriptiOn Of Money
W. HEN the Senate concurs with the House
w in the s7.00O,0O0,00O war revenue
measure. the immediate financial needs OF
the country at war will have been provided
for. This great bond issue is necessity
OF the moment. because extra ordinary de-
mands must be met by extraordinary means
whlch III turn require an emergency sacri
flee of economically sound principles II is
necessary to raise money at once. and a bond
issue is inevitable. But with the passage of
this emergency measure, the problem OF pay
ing for our part in the war. including CO.
operative loans to the allies. will only have
begun.
OF the sum authorized in the House bill
S3,000.000,000 will be loaned to the allies
leaving S4.000.O0O.0OO for the war expenses
of the United States. 1t is now estimated
that Great Britain is expanding $4,000, 900
day on the war. While this country would
not. for long time at least enter the war
on that scale. some idea OF the possible cost
may be gathered from computation that at
the British rate of expenditure our $4,000
100000 would not last five months The
most confident uphoder Of the theory that
Germany is near the limit OF its endurance
will hardly dare believe the war will be
ended in anything like that time So we
must face the problem of raising vet more
Diillons. Congress must devise The means
ana the people must be prepared to make
sacrifices.
President Wilson's insistence that thi.
must be 'pay-aS-you-go" war was and is
incontrovertibly supported by reason right
and justice. To finance the war by continued
BOND issues would work immea surab BILE harm
not only to future generations. by imposing
our burdens on them. but to millions OF this
generation and particularly to the millions
that could least Withstand its effects AS is
pointed out by DR.. Glasson the distinguished
political economist of Trinity College, the
inevitable effect Of great bond issues is TO
initiate currency and force prices upward
Government bonds readily convertible
and their issue virtually effects a cheapeninC
Of money value
Practically. then. the effect is this: the
bonds are bought, of course, by financiers
capitalists and the wcll-to-do. They form an
investment, guaranteed by the government
and they bear interest returned to their
holders. This interest must be paid and the
face value, too must be paid at maturity
Eventually. both must come out of a fund to
be created by taxation. or course taxation
rails upon all. but the Landowners set Off
against that the interest they receive, while
the great masses which hold no bonds have
no set-of. In justice. there must be an
equalization of the burden
ANA this can only he effected by direct
taxation. Heavier imposts on Injuries on
certain OF the incomes already taxed on in
hcritanccS, and on excess profits, as we'll a
lowering OF the incomes already exempted,
hrSt suggest themselves. Other subjects will
be revealed on investigation as properlv
iaDie TO the general burden. 1t is an in
lrica'e and Il difficult problem. but it can only
he settled on the principle that the burden
must he distributed among the whole neonIe
ana on all their resources
Despite the influences Of reaction and in
action. military CONSUMPTION is inevitable If
the war continues long, industrial conscrip
tion VIII follow. Unless what Dr. Glasson
Calls CONSUMPTION Of money also is enforced
therc VIII be no equalization of the burden
IL would be pleasant to suggest that Cen
oral Joffre be lodged where LAFAYETTE once
slept. But il is TO he feared the fine old
trcnchman will not live long enough.