Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-10-30
EXPAND EARNINGS BUILD VALUES
TO SUCCESSFULLY FTNANCE,W WAR
Expert Declares u. S. Must Not Make Germany's
DISTINGUISHING Should Be Doubled and
Credits Increased

The Philadelphia News Bureau today
publishes an article on how to finance the
war TO victory from the pen Of c. w. Bar.
ron, publisher Of the Philadelphia and Bos-
ton News Bureaus Mr. Barron writes in
part:
When Judge Gary told the japanese com.
missoners at Mayor MItchers reception to
them in New York City Hall this month
mat the United states could put one hun
dred billions into the war for human free
dom, some eyebrows were lifted in aston.
ishment
Yet Judge Gary only uttered truth
which close students OF the Federal Re
serve act had not deemed II good policy
Judge Gary's one hundred billion for the
war is not tho surplus income of the coun-
try, even over n series Of years. IL is the
credit that Is available for a united bank
ing power, and united citizenship sup
Economists figure that the annual savings
of 100000 families in the United states
are about $3.50 per family per annum, but
small minority Of investing families.
OF this sum of annual savings, not eN-
Ceeding six billions per annum, less than
half is available fer investment In public
securities, utilities, transportation, etc,
considerable part must be given TO
home needs. The farmer saves from his
crop, but he must build new barn. The
manufacturer saves from his profits, but
to hold his business must expand It,
y
in this country has been in connection with
transportation, yet all the railroads of the
United States, which have probably cost
more than twenty billions are selling today
for less than fifteen billions, They need
one billion per annum of new money to
maintain full service for a growing couu-
try. but they cannot get il under either
rates or legal restrictions imposed by State
or Federal authorities and transportation
in the United States has for some years
been measurably decadent But the size
pf ghOug that there has not been
three billions per annum available for re-
investment in stocks or bonds in this
country.
And now Uncle Sam has levied an addi-
tional war tax of two and one-half billions,
and before II is paid, he tells his children
! to invest In war bonds by the billion.
EXPANSION MUST FOLLOW
There are only two answers, and both
must be had to meet the situation. There
must be expanding profits and expanding
values, and there must be heavy borrowings
under the national banking and Federal Re
serve systems.
All this borrowing to carry Uncle Sans
| financial burden in the form Of Liberty
| Loans IL dangerous unless assets in trans
| portation and other public utilities and AL
| investment fields are conserved and built
| up. In other words, earnings must be eN-
| panded and values must be built MP in this
| country behind Uncle Sam and his Liberty
Bonds. If it is decreed that this is imitation
! the answer must be that contraction spells
| disaster, and we have contracted values Il
| this country, especially in the transportation
| field, by many billions, and they should be
| promptly restored as the foundation for
war loans and the prosperity necessary for
successful war You do not win wars
| with shrinking assets, but you do win them
with expanding values-expanding values in
| all fields where live and work the heart and
| hand and brain OF man.
Let il not be forgotten that the two and
one-half billion paid in taxes next year
from this years profits will be deducted
from next years earnings, and unless there
are expanded profits and expanded values,
our war finance will be on a dangerously
contracting base.
The sooner few wholesome truths are
understood, both locally and nationally, the
safer will be the cause of liberty through
out the world, for the United States and
her credit resources, as well as her men
| and munitions, are today the reserve power
| for Liberty
Economists figure that to properly sustain
| the continuous burden of war our savings
must be put up from six billions per annum
| to at least twelve billions per annum
If we put Judge Gary's one hundred bill
lions into the war we must prepare to raise