Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1917-05-18
Wor Bonds and War Taxes.

Congress has peculiarly important proolem
in determining what portion of the war cost
should be by loans and what portion oy
taxes. Complete reliance upon loans would pie
up intolerable burdens, besides bringing on uah-
gerous imitation Germany has been issuing loans
one after another since the beginning OF the war
with the consequence that she now has an annual
interest charge of almost one billion dollars.
Last year." says authority, "one-seVenth OF
the full amount secured by the financing or
the German Empire not applied to the war;
but to bond interest. England, on the otner
hand, has adhered to the principle that current
taxation should provide at least sutciency 10
pay annual interest and maintain sinking FUND
The wisdom of the English compared with the
German plan is too obvious for comment 1t was
only complete miscalculation the length OF the
and it's ultimate problems that led Germany 10
her blind mOrtgaging of the future.
There is no likelihood, however, of the United
States going too far in that direction. Our danger
lies in the opposite extreme. AS matter of both
expediency and justice the payment OF the war
cost should be distributed period long enough
to keep the burden from falling too heavily on one
year one generation. This is just, because the
war upon which we have entered is fight for the
freedom and well-beng of posterity no less than
for present liberties and rights If the men OF
today give their treasure and their blood that
freedom and durable peace may be established
among nations, surely the men of tomorrow should
give fairly of their wealth for the payment of so
righteous a debt
The expedency of distributing the war cost
over period of years instead of resorting too
largely to taxation is obvious. The successful
proecution of the demands that the countrys
economic energies be conserved. If it is essential
in recruiting an army avoid stripping industries
of necessary labor it is certainly essential not to
strip them of necessary capital system of war
taxes that took large part of corporate or in
dividual earnings as to cripple industries pre-
vent their expansion would be grievous blunder.
Factories must be kept going, labor must be kept
employed and we'll paid, commerce must be kept
moving all the forces of economic life must
be kept sound and vigorous in order that may
pass securely through stressful times which
upon us and be equal to the demands and oppor-
tunities which will come after the
Above all, the American spirit of enterprise
and initiative must not be checked disheart
ened for in that splendid spirit lies the nations
chief hope of raising promptly and easily all the
funds needed to conduct the war and of paying
off in due time all the debts thus incurred. The
forces that make for prosperity will make for vic
tory because a decisive factor in this war is
economic power and endurance.
1t behooves the Government, therefore, to
avoid any plan scale of taxation likely to i'm
pair the sources of American prosperity. With
out relying so largely upon bonds to bring
imitation and its accompanying evils, the Govern
ment should employ bonded credit freely enough
to neep from loading industry and enterprise with
more than they can bear.
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