New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-25
How La Toilette Hit
AT Liberty Loan
In Frankeid Speech
IStaf CorresposdeMcc

staff Correspondence
WASHINGTON, Nov. 24.-On Octo-
Der Is, when the Liberty Loan cam
paign was at its height, The New York
Tpbuuc, and other newspapers printed
the statement that Senator Robert NJ
la Toilette was mailing broadcast UNI
der government frank thousands OF
copies Of pamphlets containing his
speeches i'm one of which LA Toilette
advised the people by indirection not 70
subscribe TO the second Liberty Loan.
On October p Senator La Toilette
issued in Washington a long statement
denying that charge and calling II Iii
bellous and mendacious." He explained
that he was giving his speeches wide
circulation for the sole reason that he
believed in doing so he would laid IN
awakening a public interest and organ
izing a public opinion which would in
duce Congress at the next session to
more adequately and justly tax war
profits and surplus incomes
One of the pamphlets in question
contained speech delivered by La Fol-
lctte on August p. II was ordered
"franked out" 10 100000 persons on
September u, or just eighteen days be
fore the government. began its drive IN
behalf of the second Liberty Loan.
The following excerpts from that
speech bear their own construction:
1T is part Of the history OF all
great wars that wealth has demanded
the minimum of taxation and the maxi
mum of loans, while the poorer classes
have desired the maximum of taxation
and the minimum of loans, and this
difference rs accented now since war
profits and excessive incomes are be-
ing forced by taxation to contribute
some portion of the revenues which war
makes II necessary TO raise. The rea-
son for this clash of interests is OBJ
TQus. In theaffrs place, Il bond issue
means merely the opportunity Tor
desirable investment by those having
MONEY to invest. e..
sEYtry bond that is issued must
some time be redeemed, with interest,
OUT of the taxes that she people must
pay N6thing is gained by borrow
ing except that money for immedi-
ate use is obtained from those who
have It to loan, to- be repaid to them IN
the future, with interest, out of the
taxes largely exacted 'ftom those who
can i'll afford 10 pay them
- 1.-THE soscalled Liberty Loan bonds
bear only.3}2 per centtinterest, but be-
cause, exempt from taxation are an ex-
ellents-investnen for the very rich,
but a bad Investment for the poor
nan. TO whom such .efort was made to
ssiis them. .r.,.
? "Weahh is always for war. And
when it is. successful in bringing on q
war il Is often powerful enough with
war ministers and parliaments and
congresses to, force war loans to the
maximum and, by every specious de
vice and argument, force taxation 70
the minimum. And so with us in this
war4 within thirty. days from the date
Of the war declaration We had plunged
into bond issues upon an unheard of
scale. Morgan came 70 town, the press
urged, the- Administration recommend
cd and Congress authorized the issue
ofdive billion non taxable government
bonds ard two ,bilien ipterest-bearng
Treasury. notes. ",
bad financiering by heavy bond Is
sues and relatively light taxation has
always been followed by serious trou-
bles with the government finances and
severe hardship and suffering for the
people as history amply proves
Let NO one be misled. There is q
methsd behind all this. Our war finan-
eierirg IS being so managed as to com O.
nit Congress and the country 70 q
bonded debt five times as large as the
amount raised by taxation.
why was a concerted newspaper
campaign and advertisements in the
streetcars. and in the retail stores of
the country resorted 10. representing
Uncle Sam in hrid coloys crying
aloud for help? And, finally, why was
the iron hand-coyered, il may be, by
the velvet glove, but none the less the
iron hand-felt by the government clerk,
by the bank Customer, and the empioye
OF every large employer of labor, gem
tly but very, very firmly applying the
pressure 20 contribute to the so-called
Liberty Loan?
a considerable portion Of our bond
issues are TO be made in making loans
to the Entente Allies, and it IS ex-
pected that some portion of such leans
will be repaid. They may and they
may not be repaid. | suppose that no
one will contend that loans made on
the responsibility Of Serbia, Belgium,
Montenegro or Rumania are good
business investments. huoSld - III '"S
throes of a revolution, and Italy, If re-
ports are correct. is on the eve OF one
Even the strongest of the En-
tente Allies, England and France, will
be in no position to repay loans for a
long time, and If this war should still
last for several years, what political
transformations may occur IN any
country in Europe no one can foretell.
All that can be said TO GER
tainty is that no man can tell when,
If at all, we will receive back the bill
ions Of dollars we are loaning and we
are about to loan the governments OF
Europe. We may some time get 1t all;
we may never get more than a part;
and its collection may be made at the
cost Of another war, for the wealth OF
this country would have power to pro-
duce another war If they had the IN
tercst TO impel them to do IT."