The Washington times., 1917-05-11

Uncle Sam that much TO beat Germany
with, but II also gives employment TO
John Smith, brings profit to John
White, the grocer, and increases the
deposits OF the bank.
But what OF the banks which are
selling bonds on the installment plan,
particularly those which are selling
Smith a 500 bond on q basis OF 30 q
month and charging only ga per cent
interest on the unpaid balance? How
are they going to let Uncle Sam have
500 for the bond when Smith has
only paid them the FIRST installment
of So? The answer Is simple. Uncle
Sam Is going to help these banks
which are helping him sell his bonds.
The war is not going to cost $1,000
OOO, 900 right OF the bat, and there
fore Uncle Sam will not have to pay
out the $1,000. 0OO. 900 at once. All
Uncle Sam wants is to be able to get
the money as he needs II, and until he
does need II, no better place can be
found for 1t than in the banks. There
fore the Government will not ask the
bank to pay out the full hundred dol
lars at once. 1t may require only 10
per cent during the first month and
by the time the second demand Is
made, John Smith will have paid an
other installment. And before the
Government requires the bank to pay
out the last installment Of Smiths
800, some Of the first dollars drawn
out by the Government already VIII
have returned TO the banks vaults.
Same With Foreign Loans
But what Of the billions this Gov
eminent is lending Britain, France,
Italy, and Russia? the layman asks.
Surely this will be gone for keeps?
No. So far as the layman IA concern
ed, this money will go through the
same processes as the money expend-
ed by Uncle Sam. Every penny OF 1t
is to be spent in America, with Amer
lean firms for supplies which will be
shipped to our allies. When Uncle
Sam makes q loan OF a billion to one
Of his allies, IL simply means that this
amount is placed to the credit OF that
ally here, and that American manu-
facturers may proceed to NIL orders
for that ally with the assurance that
Uncle Sam will foot the bills The
money will all stay here, and the
American people will reap the profit
that must come from the expenditure
OF such vast amounts
In one respect Americas war expen-
ditures will be similar to those Of
Germany, in that the money which the
Government borrows from the people
will go back to them In payment for
service. America has -his advantage
over Germany, however. America not
only reaps the profit OF every dollar
Uncle Sam spends for war, but has
reaped during the past two-and-a-half
years, and still Is reaping, the profit
from a large portion OF the money
being spent by Britain, France, Rus
STA, and Italy.
German Money Stays Home.
Bankers throughout the country
have directed attention from time to
time to the wonderful resourcefulneSs
OF Germany in financing the war when
she was cut off from the world But
this very handicap also worked q real
benefit to Germany in that 1t forced
her to give every dollar raised back to
the people. Instead OF giving the peo-
pies OF foreign countries the vast war
profits. Germany was compelled to
give those profits to her own peoples.
The United States is not faced with
the necessity that Germany Is con-
fronted with. but she is doing just
the same thing, and has as a starter
the vast war profits which have been
Teaped by American enterprises since
1914. The per capita debt OF the Uni
ted States is less than that Of any
other great power OF the world. while
Its per capita wealth Is proportiOnately
greater than that OF other powers
Add to this the vast undeveloped
natural resources OF the country plus
the genius and enterprise OF American
business men. and 1t would seem that
the layman's fears were somewhat ea-
aggerated.
One prominent local banker express
es the view that the United States Is
just entering a period OF the greatest
prosperity that the country has ever
known.