The Bridgeport evening farmer., 1917-04-11
CUT EXPENSES
 AND SAVE CASH FINANCIER URGES
George E. Roberts Says We Are Nation of
 Spenders.

Cleveland, O., April 11.-George F.. Roberts, of the National City Bank, New York, formerly Superintendent of the Mint speaking before the Chamber of Commerce, yesterday discussed the demands of the war up on the finances and industries of the United States. He said that one of the first questions to be decided was the conservation of the labor supply by suspending undertakings not re- garded as imperative and utilizing la Dor and capital in those lines of en- deavor which were regarded as neces- sary to the continuance of the busi- ness of the country. He advised the cutting down of expenditures and the saving of money.
 "The proposal of a 100000 war loan, the proceeds to be expend- ed presumably within year, besides what will be raised by taxation, shows, said Mir. Roberts, "that there from ordinary work.
 The first problem is to release the labor supply required, by suspending undertakings that are not imperative, by the improvement of methods, by the substitution of women, and by the elimination of unnecessary expen- ditureS.
 The next problem is to raise the money required. This involves a shift of capital corresponding to the shift of labor. In peace or war capital and labor must go together. The capital must be found either by taxation or loans, presumably by both methods. Inasmuch as the loans must be car- ried 1hd paid by taxation: the ques- ton at last is how taxation for all purposes shall be distributed.
 Undoubtedly wealth expects to bear the brunt of it, and believe it is ready and willing to do so, but the final effects of taxation may reach far beyond the direct levy. One of the principles of wise taxation is that 1t shall be so levied as to bear as lightly as practicable upon industry, which involves the general welfare. AS between two men having equal in comes, one of whom saves one-half of his income for investment while the other spends all upon his own living, the first is the most useful citi- zen. He is helping to carry industry forward, and taxation which reduces his investments has an effect upon community progress which taxation upon the other income does not have.
 "The entire community is benefited by capital accumu1ations devoted to production. They multiply the de- mands for labor, increase the supply of comforts, and raise the standard of living. They make the difference between stationary and a progress sive society, between conditions in China and in the United States
 Tt is sound public policy, therefore, to direct taxation, so far as practic- able so that it will tend to curtail iun- necessary expenditures, rather than reduce capital. We have practiced this in the taxation of certain 1uxur- ies, but the policy can be largely ex- tended. There is wide field of ex- penditure beyond what is required for health and comfort. We are confess edly a free-spending, even improvi- the savers are comparatively few, and what is saved helps to increase the income of all.
 "Undoabtedly a very considerable proportion of the expenses of the war will be raised by taxation as it goes along, and this capital will be gone beyotd recovery; but taxation after the war for the payment of loans will mean enforced savings to replenish the capital fund, an make up for the check upon progress during the war;