Daily capital journal. (Salem, Oregon) 1903-1919, 1917-06-15
WE MUST PRODUCE TEN BILLIONS

There is one feature Of financing war that is but
little thought Of and that countrys ability to finance
it is measured by its ability to produce To ilustrate
Germany has spent for war purposes probably about
Sl8O00000000 This equals all the gold in existence
Yet Germany has not sent her gold abroad but has kept
it at home and used 1t over and over again. 10 do tns
it was necessary that the German people produce the
things that money spent for This shows that Ger
many besides the profits that have been made in business
outside of strictly war costs, has been able to produce
material for at the rate OF about S6OOO0OOOOO
year Put in another way she has produced at the rate
of about 800 year for each person within her borders
In her case allowance should be made for the I'M
mense war chest she had accumulated and the vast sup
py of munitions she had hand These would represent
perhaps three billions. .
The United States will during the first year Of her
participation in the spend in the neighborhood OF ten
billion dollars This is at the rate of 500 per capita
billion Of this has been loaned the allies and other billions
will be so loaned if necessary which practically GER
tain None of this money however goes out Of the coun
try but will practically all of it be spent for products OF
some kind grown made in the United States Clotmng
food and munitions will comprise the Dulk OF sucil
materials and this that during the year the people
of this country will have to grow or make something that
will require all this money to purchase In other WORDS
this country must produce something worth ten billion
dollars within the year Il it does not 50 produce tae
then the money cannot be spent That it will produce
them and much if necessary, goes without saying
for whatever is needed will be made This applies even
to foodstu for if there is shortage this year there wiz
be arrangements made for next year that VIII gfeaty III
crease the acreage. "
On top of this it is easily there should be great
prosperity while the lasts, Tor II VIII employ every
person at high wages and will make market for every
product at high prices. i
The money first raised by bonds will soon flow back
into the channels of trade stirring ali business as it does
So and will be again available for another bond issue
This will occur over and again while the war lasts.
Out of this increased prosperity taxes will gather larger
part than usual BY taxes we mean all means by Whch
the general government raises money. Incomes nher
tance and such along with tariff, and internal revenue
taxes will all contribute and pay large part OF the wars
cost as we CO. instead of leaving all for ourselves and
posteIity to pay later
Another feature of the is that there will be un
precedented demand this country for her products OF
field and factory for several years after the war at
for it will take vast and long time to rehabltate
the countries devastated by So in buying bonds and
making the government your debtor you are putting
your money out at interest and will at the same time
have it returned to you through the channels OF trade
Oregon has benefited but little heretofore from the war
has in fact been hurt by it instead but new deal on
and she too will get of the benefits of increased
business For one thing it is proposed to spend half
billion dollars for arships The lumber for these will
from the forests of this state for is pronounced
the best there for the purpose The building of wooden
ships will bring countless other millions to the northwest
and Oregon instead of Maine will be the great wooden
shp-bulding state. These but two of the many
things that will turn a stream of gold to Oregon
More than two days before the time limit expired for