davidaulloa/AmericanStories huggingface dataset:
The Barre daily times. (Barre, Vt.) 1897-1959, 1917-06-16
PLAINFIELD

The relations-in-law Of a young couple
can cause a lot Of trouble and misunder-
standing. The story OF Caprice" 10 be
given BY the Nellie Gill Players tonight.
deals with the adventures Of a poor
young country girl, who marries a city
artist and then has to educate herself
TO her new associations. Wells orches-
ira viii furnish music between the acts
and for the dance.-sdv.
The Barre daily times. (Barre, Vt.) 1897-1959, 1917-06-16
Hindenburg's Answer.

OF course Hindenburg's answer to the
British victory at Messines ridge might
have been foreseen. He sent fifteen air
planes over the tenement district of
London to kill and wound more than 500
non -combatants. One of them lombard
ed a schoolhouse and struck down sixty
children. Hindenbmg had announced to
the kaiser that "the great British and
French spring offensive has come to a
The Barre daily times. (Barre, Vt.) 1897-1959, 1917-06-16
Not Needed,

The young bride had clearly formed
ideas on the industrial questions.
81 will give you something to eat" she
informed the tramp, "if you will get that
axe"
"On, shan't need that" the tramp in
terrupted in reassuring tone. MY
teeth are all right. Judge.
The Barre daily times. (Barre, Vt.) 1897-1959, 1917-06-16
BETHEL
Grammar School Graduation Attracted
Large Crowd.

! The final event of commencement
week, the Whitcomb grammar school
graduation, called out almost as large an
attendance as the other events. The
play, Excuse Me-" two-act comedy,
Tor which the participants had been
drilled by their teacher, Miss Pearle
Ralph, was well presented by ii mem
bers OF the graduating class. There were
two sweet songs by dozen girls of the
seventh grade and music was furnished
by the high school orchestra of four
pieces. Diplomas were then presented by
I'rin. III. W. Haskins to William Cliff
ford, Jr, James Davis HOLSTER Fetch
er, Emma Haikara, Richard Moriarty,
Cora Newman, Aguinaldo Peduzzi, Ber-
nice Perkins, Adeline Persons, Marjorie
Rogers, Jennie Savage, Blanche Smith,
and Frances Southworth. The welcome
address by Miss Southworth and the
farewell address by Miss Perkins were
well delivered.
Rev. Fred Engel of Gaysville viii be
the morning preacher tomorrow at the
Methodist church and in the evening
Supt. NJ. A. Sturtevsnt will address the
Young Peoples Christian league.
Miss Grace A. Persons returned yes
terday from Boston to spend the summer
at home.
Mr.. and Mrs. James Stevens of Had
don Heights, N. j., came yesterday to
board at John Richards in Barnard.
James Mccullough was the only third
grade pupil who was neither absent nor
tardy throughout the school year.
Misses Geneva Gragdon and Frances
Dyer of the village teachers returned to-
day to their homes in Franklin, Me.
Misses Agnes Leary and Ernestine Sweet
returned to their homes in Burlington.
Miss Zilpah Ranney returned to Pitts
field and Miss Ruth Leonard to Stock
bridge.
Mrs. Julia Whitcomb has returned
from fortnight's visit with old neigh
bors in Stockbridge.
Mrs. Mary Talbert and Mrs. Ida |
Choate of Boston were at Fred Whit |
ney's for commencement.
Closing out sale on Panama hats Mon |
day, June Is, till all are sold; also a
great reduction on trimmed and un-
hats. Mrs. F. Il. Martell, |
Emery hotel block, Bethel, Vt.-adv.
The Barre daily times. (Barre, Vt.) 1897-1959, 1917-06-16
A Mere Accident.

ADMINISTRATIONS! Your mudguard is
all smashed! Did you bump into some
thing?
Bunkum--No. We were standing per-
fectly still and a fire hydrant skidded
into us.--Judge.
The Barre daily times. (Barre, Vt.) 1897-1959, 1917-06-16
TUNBRIDGE
Flag Raising Proved Big Success-Rev.
J. Wesley Miller, Speaker.

The flag raising Thursday was an I'M
qualified success. The public schools
were out in force and formed in line at
town hall, then, headed by the local cor
net band, marched to the creamery
square, where the raising" came off in
regulation order, the band playing the
"Star Spangled Banner" followed by
three times three" The column then
reformed and, joined by large com
pany of citizens, returned to the town
hall, where school children and choir
rendered most excellent program. The
address was by Rev. J. Wesley Miller
of Bethel and was very well received.
Z. j. Hewitt OF South Royalton also pre-
scented the needs of the Vermont Red
Cross.
The ell and outbuildings at the HUI
dab Smith place are being removed by
the new owner.
Miss Clara Folsom qualified for mem
bership in the appendix club" at Ran
dolph Wednesday. She is reported as
doing well.
Mr.. and Mrs. Harry Whitney are in
Hartland for few days.
Elihu fuller had a cancer removed
from his lip Wednesday at the Mary
Fletcher hospital in Burlington. This
was a change in his plans because of the
scarlet fever quarantine in Hanover.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-22

composing the Federal Reserve Sys-
tem-member banks and Federal
Reserve banks together-have a po-
tential credit capacity for the bor-
rowing community of some $780,
100000. This is an enormous poten-
tial credit power. But it is important
that we should recognize that such
power has its dangers and tempta-
tions as well as its protective
strength and reinsurance. To the
expansionist it opens alluring vistas
of initiation. By it's wise use, how
ever, it is capable of becoming at
critical times a factor of decisive i'm
portance in the credit operations
which will have to be undertaken
during the period of the war-a bed
rock of strong and wise finance.
What the Federal Reserve banks
can do usefully to help the financing
Of the country in its present crisis
is one thing; what they may find it
necessary to do against their best
judgment and to the prejudice of the
SYSTEMS healthy development is an
ether.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-22
War Financing
Operation in Saving

The danger to be feared in under
taking to finance our war by credit
is that sophistry and financial leger-
demain may lead us to attempt to
carry the operation through as an
operation in banking finance, in
stead of as an operation in saving
and investment. The doctrine is al
ready current in the country, with
the sanction of some leading bank, ,
ers. that our war cannot be financed
except by credit expansion running
to the limits of initiation. Being deal
ers in banking credit, they natural
ly take the view that the expansion
Of credit in question will properly
have to be an initiation of banking
credit; for this is the new and most
recent form Of initiation which the
gigantic war in Europe has been
bringing to the front as device in
war finance.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-22

ter the government gets the reve-
nue.. while in the former case it bor-
rows it, and those to whom it is
eventually repaid are not those, for
the most part, who have been
mulcted for it.
Initiation, therefore, produces a
situation akin to double taxation in
that the great mass Of the consum-
ing public is hard hit by the rise Of
prices. induced by the degenerated
borrowing policy, and later has to
be taxed in order to produce the
revenue requisite to sustain the in
terest charges on the debt contract
ed and to repay the principal.
The active business and specu-
lative classes can usually take care
of themselves in the midst OF the
confusion produced by imitation, and
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-22

That may mean either % taxation
carried to the limit, that is, con-
scriptive taxation, as some already
propose, or (2) conscriptive borrow
ing-a less drastic form of financial
draft-as the only acceptable al
ternatives to initiation.
For let it not for a moment be
overlooked that initiation, in its eff
fects, amounts to conscriptive taxa
ton of the masses. 1t is, indeed, one
Of the worst and the most unequal
forms Of taxation, because it taxes
men not upon what they have or
earn, but upon what they need or
consume. The only difference for
the masses between this kind Of dis
guised and concealed taxation and
taxes which are levied and collected
openly is that in the case Of the lat
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-22

nary under any effective scheme OF
national finance we may adopt, and
the question, which is much dis
cussed. as TO whether taxation or
loans should be our chief reliance,
or the proportions in which the two
should be combined, gets its chief
meaning from the effect that the one
or the other, or any given combina-
ton of the two, may be expected to
have either in stimulating or In
forcing national thrift and the
growth of our annual savings.
The danger of the loan policy is
that by deluding itself with a notion
that it is putting the burden on 10
the future, it will, through resort to
fatuous and easy expedients, put
the burden both on the present ana
On the future. This will happen II
the loan policy, failing to induce a
commensurate increase in the saw
ings fund Of the nation, degen-
crates, through the abuse of bank
ing credit, into infatlon-raising
prices against the great body OF
consumers, as we'll as against the
government, thus needlessly aug
menting the public debt and increas-
ing the cost of living just as taxes
would.
The policy of financing war by
loans, therefore, will be but a
fragile and deceptive and costly
support unless every dollar obtained
by the government is matched by a
dollar of spending power relin-
quished by the community; in other
words, will fail and develop into In
fation unless the dollars which are
subscribed to the bonds of the gov
eminent are real dollars, the result
of real savings and of real re-
trenchment.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-22

a country, but its realizable wealth,
that counts in wartime as an index
of financial capacity, and there are
great differences between coun-
tries with regard to the proportion
of their total wealth on which they
can realize for the purposes of war
acknowledgement, among the
present belligerents, being mani
testify far the most fortunately cir
cumstanced in this respect.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-22
Two Billions Of
Note Issuing Power

Under the amendments which have
just passed Congress, providing for
a greater concentration Of the gold
holdings of the country in the Fed
eral Reserve banks, the twelve Fed
eral Reserve banks will have a nor
nal credit-lending and notc-issuing
power in the aggregate Of about
O0,000,000. Thus far, less than
one-quarter Of this power has been
utilized in extending accommodation
TO the money markets Of the coun-
try, whether through the member
banks OF the Federal Reserve Sys-
TEN or otherwise through open mar
ket operations. The system pos
sesses, therefore, an untouched mar
gin Of lending power OF some
81 500, 100000. When it is recalled
that a dollar Of reserve credit ex-
tended 20 member bank by Fed
eral Reserve bank may multiply
Itself by nYeiold or more in the
lending power 81 tbs member bank II
"a A. once spparspt that TIA hAakS
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-22
No Mysteries in
Sound Finance

The undertaking may well seem
stupendous, and to involve for many
classes of the consuming public very
drastic revisions of their customary
mode of living. The more the situa-
tion is pondered, however, the
clearer it becomes that we cannot
successfully undertake the financing
of the war except by putting it on
a foundation Of economic concrete
by the practice of thrift on a scale
which has not been our national
habit for many decades. There are
no mysteries in sound finance, no
short cut and easy methods by
which we can make something out
of nothing. We shall be dealing in
self-deception, therefore, if we at
tempt TO avoid facing the fact that
the war, on the scale which is pro-
jected, will call for n diversion of
about one-quarter Of the annual in
come-or, let it be stated more fun
damentally, one-quarter Of the pro-
ductive power Of the nation-from
individual use to government use.
Thus stated. it is clear that saw
ing on q scale of unprecedented in,
tsnsity will be an essential pyelimi.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-22
Imitation Full Of
Seductive Potentialities

Initiation as an expedient Of pub
lie finance has long been practised,
although it has never had the sane
ton and approval of those whose
business it has been to lay down
canons Of finance rather than to en-
gage in the practice of finance. The
record of our own great wars and
the records Of the great wars OF
other nations in modern times show
pretty uniformly that timidity in
facing the serious realities of war
finance has usually developed a
situation from which escape was
finally sought through the desperate
and costly expedient of government
currency imitation. Such was our
disastrous experience in tie Civil
War. when resort was had to the
greenback currency, which was
nothing but a device of infiationism,
and some 100000 thereby added
to the cost of the WARWICK might
/ have been avoided had the govern
ment's financial operation been
maintained on a strong and healthy
basis-to say nothing Of the de-
moralization wrought in business
and the hardships and iniquities in
ficted upon the great body Of de-
fenceess workingmen and consum-
iers.
Clear and specific as the teach
/ ings of that experience are to those
/ who can learn from history, it will
remain for this war to demonstrate
whether or not the lesson has been
( fully taken to heart. Initiation is full
Of seductive potentialities TO the
pundits of paper finance. Even if
we do not avowedly repeat the cost
| ly mistakes of our Civil War by
ventures in the field Of government
currency initiation, we may yet
reach a similar result and land the
community in similar plight
through the more subtle and less
vulgar process of banking initiation.
The average business man and
even the majority of bankers have
been very slow to appreciate the
fact that in such a country as ours,
with a highly organized system Of
mobile banking credits, banking
credit is the most common form Of
purchasing medium used by the
business community. When an ordi-
nary commercial bank opens a
credit on behalf Of any Of its Gus
toners for $4,000 it creates by a
stroke of the pen an addition to the
supply of the purchasing media Of
the country of $4,000, less dis
count, just as Enthusiastically as if it
had issued $4,000 in banknotes or
had paid out any of the other forms
of conventionally recognized cur
rency or money.
Banking credits which originate
ir connection with actual operations
in industry or commerce. and which
ARG protected against overextension
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-22
CINC To TEACH THE NATION BIC LESoON IN oAVNN

recoup themselves ia, a..
ing OUTLAWS. Indeed, iasss =
quently makes for an ,,,;s'
ai'i0n Of business prosp.ri's
is why war times ar. =,
spoken Of in terms Of ~. ,,s''
by the e class of bushes. -
ers. But it is a prosp.ds - !
dearly bought, and at a. a. :
OF the great body Of ~. = ,
people 1t would be . 49,
wrong IT, in financing o., :
war, we should rurn. y
that would land rs n "a
imitation in which the rs' !
of the American people :.
called upon to contribute .. .
Of their sons to the var, ,n
the victims of a careless !, !.
tous financial policy.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-22
Must Protect Credit
Needs of Industry

II should also not be overlooked
that there will be many readJust-
ments of our internal trade and in
dustry during the war in the process
of adapting our economic organiza-
ton TO the necessities of our new
situation. Many industries may be
expected to experience a slackening
of demand for their output and Will
need the conserving care OF well
administered credit system to tide
them through the period of the war.
MANY others will be under stiff and
urgent pressure rapidly to expand
themselves to meet the intensified de-
mands for their output occasioned by
the war, and will need the use of the
Reserve banks credit facilities.
These things may not bulk large
in our calculations at the moment,
when our minds are preoccupied with
questions of government finance. But
as the deep disturbance which will be
wrought in our whole industrial or
ganization, as the war proceeds, de-
velops, these needs will make them
selves felt. Proper concern and pro-
vision for the credit needs of our
industry and trade both during the
war and after the war ought not,
therefore, to be prejudiced or fore
closed by undue or improper use OF
the resources of the Federal Reserve
System-vast and inexhaustible as
they may appear to many to be at
the momentum the financing Of the
war.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-22
BY A. c. MILLER,
Member Federal Reserve Board

From Recent address,
ut is two and half years since
the Federal Reserve banks were
Il set in operation. Their activl-
ties until recently, however, have
been of restricted dimensions. Es-
tablished primarily for the service
that they could render to the flnanc-
ing of trade and industry and as a
protection against the vicissitudes OF
the modern credit system, their chief
value thus far has been to give TO
the country's banking and business
affairs an undertone of strength and
a feeling of security, and at times 70
exercise a restraining and pruaen-
tial effect on the course OF the coun-
try's banking policies and affairs.
Although no such serious RESPONSE
bility as that which now confronts
the nation in the field of public
finance could have been foreseen by
the trainers Of the Federal Reserve
act. provision was nevertheless made
by which the Federal Reserve banks
could be used as instrumentalities IN
support of government finance and
we may, therefore, expect to see them
becoming more and more, as the war
goes on, a powerful auxiliary factor
in the financial operations of the ma
ton.
How much their position and
character may be changed under the
weight of the new and varied obliga-
lions which may be imposed upon
them by reason Of the fact that war
is to become the principal business OF
the nation for year or more is a
question that cannot but be viewed
with anxiety by those who have be-
lieved that these great institutions
should always find their primary ana
normal field of activity in serving
the needs Of the country's industrial
and commercial enterprise. For the
war will some day be over. If, there
fore, it should result that, as a con-
sequence of undue reliance upon the
resources of the Federal Reserve
System in financing the war, the sys-
tenn was transformed, and its ability
to assist in the recuperation OF
American industry and its readjust-
ment to the altered conditions Of the
whole world of commerce which may
safely be predicted to follow the
close of the war, impaired, the con-
sequences would be of the most seri-
Gus character.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-22
Must Pay Way Out
OF Excess Income

OF Excess Income
But of far more importance even
than realizable wealth as an index
of a nations financial or contribu-
tive capacity is current income or
the current product Of industry, es-
pecially for a country which has to
be taken by itself and do all its
financing from within, and without
external assistance-for such is the
position of the United States. We
shall have to pay as we go, out OF
our own unaided resources; that is,
out of current income or the cur
rent product Of industry.
How much of our current income
and product is to be regarded as eff
fective income-that is, as made up
of things available for government
use-is the question that must be
answered in attempting to estimate
the financial and contributive ca
pacity of the nation for war pur-
poses. BY effective income is meant
that portion of the total gross in
come of the nation which is in ex-
cess of reasonable and proper pro-
vision for the living requirements OF
the people. 1t is that excess which,
in wartime, is to be regarded as the
nations available or spare income
that is. the income that can be
spared or withheld from individual
consumption and turned over for
the use of the government. Obvious
" the wider this margin of surplus
or disposable income the greater the
effective financial strength of a
country.
What. then, is our effective in
come?
Our gross annual income was es-
timated before the war at S30,OOO,-
100000. The growth of our indus
trial and productive power and the
rise of prices which have gone on
apace during the last two years are
estimated to have carried our gross
national income up to from s35,'
600 100000 to S4O,OO0,000,0OO. If
the latter figure may be taken as
approximately correct, it is clear
that the expenditures in contempla.
ton for the war (S10,000,000,O OO)
will absorb about one-quarter of oui
gross national income and call for 9
considerable addition to the annua
savings of the nation. How much
this amount is in excess of the pres
ent annual savings or investment
fund of the American people-tha'
is, the proportion of its income an
nually set aside and withheld from
consumption-can only be con
iectured; but our present actua
savings fund is almost certainly less
by one-half than the amount which
it is proposed to raise for the pur
poses Of the war. It was competent
ly estimated that the annual saw
ings fund of Great Britain before
the war amounted to 100000, 900
1t is doubtful whether ours amounts
to more than twice as much az
Great Britain's; but even if we take
On optimistic view of the situation
and allow that ours may amount tt
as much as $4,000 100000, it is clear
that the financing Of the war con
fronts us with the problem of con
verting an additional $4,000, O0O,O OC
Of the gross income of the American
people into savings to be turned
over for the use of the government
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-22
Dangers Seen Through
Tissues of Paper Finance

B
The same process, only in a vast
ly intensified degree, has been going
on in the belligerent countries Of
Europe, and has given rise repeat
eddy to the gravest expressions Of
solicitude by those who are engaged
in looking through the tissues Of
paper finance to the memorable
economic facts. All Of the belliger-
ent countries of Europe, in one de-
gree or another, have undertaken to
finance the war by borrowing, with
imitation results that, for the most
Cf them, make tragic record Of
hardship for the masses and need
less augmentations of the nations
debts, and will leave behind, at the
close of the war and for the next
generation, a heritage of unspeak-
able financial confusion.
Infationism may not be the ulti-
mate term in weak or bad finance,
and situations and conditions may
from time to time present them
selves to US which will make a de-
gree of temporary initiation unavoid-
able. But imitation is so nearly al
ways bad, and so nearly always
avoidable-if there be but will and
courage enough on the part of the
community and its governors-that
it is pretty nearly an ultimate test
of the character and workings Of a
country's credit and financial sys-
TEN.
repeat, therefore, that il our
loan policy, through an undue re-
lance upon banking credit, degener-
ates into infationism, it means that
the loan policy is failing, and there
fore that the system Of undertaking
to induce the people to save for the
use of the government brief, the
voluntary system Of finance-must
give way to some other more rigor-
Gus method or system--the system
OF compulsiou or financial draft