The states-graphic. (Brownsville, Tenn.) 1???-1984, 1917-09-07
TAKING BORROWING

+.
1t is quite sure that neither siaa
this war viii be defeated by Iack ii
money. The assertion may be made
without qualification that no warning
country was ever defeated by inability
to raise the funds necessary to carry
on the contest. An extreme illustra-
ton of the truth of that assertion is
our own experience in the Civil War.
The United States in 1860 was rich il
all sorts of material things, but fan
from rich in money. The south was
bankrupt at the start. Yet both sides
waged gigantic war for four years,
and when finally the Confederacy cor
lapsed it was not financial exhaustion
that caused its downfall
Both governments made forced loans
They paid their way with promises to
pay; that is, with irredeemable paper
money. They borrowed from the PEG
pie in that currency and paid it out
again. On both sides of the line the
currency deprecated; but the process
was repeated, and money, such as It
was, provided the material of war TO
the end. 1t was a bad system, but
neither government was able to finance
itselt in any other way.
A nation at war must always consid-
er what portion of its expenditure
shall be met by loans and what part
fnNEflnn fhnnYxr &c nd 1x. -
vanced that, since posterity is to share
the benefits of a present victory, then
part of the burden may reasonablSbe
left for posterity to bear. Although
the argument is plausible, we should
reject it as basis of action, for the
reason that we do not tighten our owl,
burdens by transferring a burden to
those who are to come after nor con-
slider the Generalization of trade, to
say nothing of political decentralization
that resulted from the decline in val
ue of the greenback in this country
during the years that elapsed befor
we returned to the gold standard
Ii we are rightly informed, Germany
is financing itself chiefly by loans. |
Taxes are said not to have been large
ly increased. At all events the govern.
ment has issued enormous quantities
of paper money. Coin, even the silver
small change, has largely disappeared |
and the paper money is at a consider
able discount. On the foreign ex.
change the mark is worth only aoout
half its nominal value If these things
are true, there is long period Of fin.
ancial arrangement before the German
empire, unless it can force great in
demnity from its adversaries.
Great Britain, although it has been
obliged to advance great sums to its
allies. end has had, therefore, SO Oh.
tain mucn more money than it eouia |
possibly have raised by taxation, has
nevertheless greatly increased the rev
7nue that it draws from the people it
taxes. 1t has gone as far as 1T can
withou. running the industries -
profits il drains. But its credit -
impaired, the pound sterling Is tIafsY'
That IS che true policy for Chi I elan-
try, ; 8eS are hard 70
kional cceait IS IA preeil n
ss Is
safe ~ Nem9,racys ~ o1fV at
and our ehildren's childre u & se,
but for ourselves, too VIA lave
is ours, and we have right to uIe ii
to make ourselves secure. If we Aead
it wisely-not merely lend il tO the
goyernment-we shall bequeath the
priceless legacy of liberty and peace
to our successors, and we shall save
ourselves and them from the evils Of
demoralized finance. #I