The Washington herald., 1917-09-04

Secretary McAdoo estimates that the
yearly production of all kinds in the
United States. together with the year
iy income, aggregates $50. .0oo. 900. There
fore should the war continue into 1918
the cost of it to the government, in
cluding loans to the Allies, should be
so. 900, 900. 900. yet there would still be
left $4,000. 10000 representing the
money value of production and of in
come for those two years.
In All Sorts of Ways.
The government at Washington is
planning all sorts of expedients and
wise methods by means OF which
1t can secure these funds through
borrowing from the people. In ad-
dition to the new liberty loan Con-
gress may authorize a unique meth
cd of saving, beneficial both to the
government and to the people. The
plan is simple one. Any man who
has five dollars in his pocket or
possibly as small a sum as one dol
lar will be able to use this money
to buySa bond which he can obtain
at the post office and other places.
These bonds will probably bear in
teresoat the rate of per cent and
the best judges are certain that IL
an offer of that kind were to be
made as many as two billions of
bonds would be purchased by the
people in the course of a few
months.
Some have wondered how a propo-
sition of this kind would affect the
postal savings banks and the State
savings bangs. In the past fiscal
year the savings of the people have
accumulated more rapidly and in
larger amounts than ever before in
a single year. Postal savings banks
report large gains. The savings
banks of the State of New York
gained nearly one hundred and
twenty million dollars in the twelve
months ending July l over the pre-
ceding year. They have resources
considerably in excess of the first
liberty loan and IL would have been
possible, although of course i'm
practicable to have marketed the
entire liberty loan with the savings
bank deposits of New York State.
The depositors increased their sc-
counts with the savings banks in
single year by nearly one hundred
and nine million dollars. There is,
however. no real apprehension lest
an offer by the government to sell
bonds through the post Offices or
other agencies in small amounts
would seriously affect the deposits
Of the savings banks or Of the pos
tai savings. A sale of two billion
bonds of this kind would in all
probability simply reflect additional
savings.
Not Conscripting but Giving wealth.
The sale by Bernard Baruch of
his seat in the New York Stock
Exchange so that he might be en-
tirely hand and foot free to aid the
government at this time simply
illustrates what other men of great
wealth are doing. 1t has been esti-
mated that. Nj Baruch by giving
his exlusive sEiee to the govern
ment is sacrificing an income or
earnings of many millions. When
he gave up his seat in the stock
exchange he did in his way what
Seth Low did when he became
mayor of New York. Mr.. Low with
drew from every business associa-
ton in which he had invested
money, so that he would not in any
way be guided in his executive ac-
tion by personal interest. Mr.. Ba-
ruch is giving his certain incre-
ment of wealth. The government
has not conscriped it excepting
that he will be compelled to pay
bis share of the income tax. Paul
Warburg. when he became a mem
Der of the Federal Reserve Board,
made great pecuniary Sacrifices,
Withdrawing entirely from all busi-
ness association with which he had
been connected. When W. P. G.
Harding, of Birminghs. Ala, ac-
cepted appointment as a member. of
the Federal Reserve Board he made
personal sacrifices, his only recon-
pense being relatively small SAL
ary and his sense of public service.
All of the men of wealth and of
great business capacity who are
now aiding the government volun-
tarily and without recompense are
giving up opportunities which in
normal times would bring to them
large pecunisry returns
HOLLAND.