The Washington times., 1917-05-11
War Billions Will Stay Home
Each VIII Have More Money Than Ever Before,
Despite Fears of the
Timid
By Y. e. BOOKER, JR.

What is going to become of the
seven billions of dollars that Uncle
Sam is borrowing to finance the war?
who is going to get It and what eff
feet is the expenditure OF this stu
pendous amount going to have on the
United States?
Is the nation going bankrupt as a
result? Is the raising OF these billions
going to make money so scarce that
the layman will have none with which
to purchase the necessaries OF life?
These are some of the questions
being asked by thousands throughout
the United States today who have
bought and who contemplate buying
some OF the Liberty bonds. The ''little
fellow" who is about to invest the
savings of years perhaps in one OF
Uncle Sans 500 bonds is wondering
what will become OF this hundred
after he exchanges 1t for the Govern
ment's promise to pay.
To one who is unfamiliar with the
possibilities of credit expansion IL
sounds most appalling, and financial
ruin for the country appears to be
lowering just over the horizon. II we
are to spend $1,000 ,0OO, 900, there must
be just that much less left in the coun-
try to spend for other things. the lay
man reasons, and his heart shrinks
within him.
All VIII Have More.
As a matter OF fact, the situation
Sam has got through spending his
seven billions for war. there will be
more money in circulation among the
laymen OF the country than ever be-
fore. according to financial experts:
there will be more money in the
banks than ever before: there will be
more money changing hands in the
various business activities than ever
before, and the average man who
works for a living will ind that, in
stead OF having less money with
which to feed. clothe, and amuse him
self. he will have more than ever be-
fore.
For instead OF being sent to Europe,
the seven billions OF dollars will be spent
right here in the United States-every
cent Of it-and American business men
and American working men will reap a
profit on every dollar. There will be
just as much money in the country after
the loan is hoated as there is today. The
only difference between the condition
which will exist then and that which
exists now. is that then the seven BILL
lions will be out at work and giving
work to millions Of men and women.
Take John Smiths 800 which he de-
posits with a local bank for a Liberty
bond. So far as John Smiths insight
into the transaction goes. the bank gets
800 and he gets a piece Of paper which
pays him a certai namount Of interest
a year, and which he can exchange for
cash. II necessity demands. Perhaps
Smith thinks the hundred dollars disap-
pears into air and that the piece Of
paper he has carefully guarded in a
safe deposit box is all that is left OF the
hundred"
What happens to the hundred? Uncle
Sam calls for 1t. or for a portion OF Il.
when the bond IL delivered. leaving the
balance on deposit with the bank to be
drawn out as he needs II to meet his
war bills. The Government then turns
the money over to some one Of the many
branches OF industry which today are
working overtime to make the necessary
arms and equipment for the vast armies
the United States will raise. The COM
pany or Individual which receives the
hundred in turn pays IL out to its en-
plnyea IN wages, \ PeFtieH % IL seiHss
to John Smith. who doesn't suspect that
II is the same money he paid over for
the war bond. Smith in turn spends II
with various merchants. buying groc-
cries. clothes. and perhaps contributing
a few nickels and dimes OF 1t TO the
movies" The merchants deposit 1t in
the banks. and the process is repeated.
Helps All Around.
Thus the hundred dollars which is paid
Into the bank in exchange for a bond
keeps moving. and as 1t changes hands
profit Of a greater or less degree accrues
to those who handle It.
So John Smiths 500 not only gives