Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-11-17

a.
Every man and woman In the United
States and its territories engaged in
a gainful occupation can, BY saving
his or her money and buying govern
ment securities with those savings,
aid in checking the advance. and II
the saving and buying becomes Of
sufficiently large proportions, help in
decreasing the high cost Of living
For the law Of supply and demand
still holds way in the financial world
as elsewhere and it is WelEknoWn
fact that with every increase IN the
volume of paper money there Is =
tendency for prices Of food and COM
modities to rise. Conversely. where
there is a decrease in the value or
money issued there is a tendency for
prices to drop.
May Even decrease
Hence In the coming months Of the
war, the prices of commodities will
rise in proportion to the amount Of
money issued and If the people Of the
United States and its territories units
in campaign for economy the high
cost of living will be checked consid-
lefably and II that campaign assume q
national aspect and is Of sufficiently
large proportion to equal the expen-
ditnres to be made by the government
there may even be a decrease in the
high cost Of living
Speaking generally, there are thous-
ands of people today who are spend
| ing their money exactly as they did
before last April without a thought Of
Saving. The success Of the two Lib
Ierty loans has deluded great many
i into believing that the finances Of
America can Withstand all demands
made upon them. The fact Of the
matter is, that the finances Of Ameri'
lea will not be able to withstand the
huge drain that is to be made BY the
government without the effect being
felt in resultant higher prices Of COM
Imodities, unless there is concerted
movement towards economy and q
lchecking of the thoughtless spending
THAT is now going on.
/ The Cost Of War
While engaged In this war, United
States will be spending, according t.
1.-THE best figures obtainal e, in the
Ineighborhood of SIS. 000, 0O0, 600 a year
and Of this sum less than s.. 000. 900 .001
lis expected to be raised by taxes. leav
ling nearly SIS, 100000, 900 still to be
obtained from other sources.
True, the Liberty loan campaigns
will bring this figure down. Working
under the suppos.tion that those &C
scustomed to saving their money for II.
Investment in the past, put all their sink
ling funds into Liberty Bonds IN the
next twelve months. it viii bring forth
about $4,000, O00, 000 To this figure
might be added the net increase each
lyear in savings. amounting to 100000
1000. Including also the other minor
Items which go into various channels
lof investment, the total might be IN
1.-THE neighborhood of $4,000, 900 900
Providing that all this Is placed n
government securities there win still
remain $4,000, 900 900. which the gov
lernment must obtain to carry out Its
war program.
One Way
| Now, there are two ways in which
this needed money might be secured.
The government can go to the banks
and give them treasury certificates
and issue new paper for that figure.
lThis would produce imitation OF cur.
lrency. And while there would be more
lcurrency in circulation, prices would
rise because the money In circulation
would be deprecated in value. To