New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-24


at means more than that. too. 1t
means a vast amount of mental worry,
OF anxiety upon the part Of the great
mass of the people who are already
bending under tht burdens OF taxes and
under the increased cost Of living. The
question which confronts us now is
how shall we meet this task. There
are three ways in which TO finance this
war. First, we might provide almost
entirely for bond issue. Secondly, we
might meet the war by taxes, paying
as we go. Thirdly. we may combine
these two propositions, and that. OF
course, is what we shall do.
I'VE not only have an estimated
wealth of some $3.50, 900 or
$500 600, 100000. but at the time this
bill is under consideration we have
back Of US two years of war prohts.
We have already accumulated and dis
tributed among the stockholders some
$4,000. 100000 of war proflts covering
the years 1915 and 1915. -,
"ir Kuhn. Of the famous firm OF
bankers Of New York, has estimateo
that this year we Will have al leas'
$1,000, 100000 in the way Of war prohts.
/ take il that any estimate coming from
Mr. Kuhn is not only conservative pu'
reliable. Others, however. have estl-
mated the war profits of this year as
high as $1,000 900, 900 or s3,5O0OOO,OoO.
Questions Economic Wisdom
an the face Of those figures what
are we proposing 10 do IN TINS Dill IN
the wav of raising taxes and IN the way
of issninp bonds? We will eXpend un-
ouestionably this year, aside from me
amount which we advance to the Al,
lies al least s10,000,000 900. would
much prefer 70 say, in order that
MIGHT be more accurate, that as ti me
goes on we will expend Sl5,OOV'OVo'UOo
in addition to the amount whlch we
send to the Allies. -. ~,
And we are proposing 70 rals e oo ny
.h;- Iii something over $1,000 100000.
Nv ether words, we initiate pro-
gramme with a S20O0O0O,OOO tax plli,
5enendinc upon bonds to cover the
o,ber 81 600 600 900 to $4,000 OO,OOO.
~ think II not only unwise economi-
csllv and from a financial standpoint
hpt I think it unjust and unfair 90
not believe that it is at all meeting
aT5e distinguished Senator from
North Carolina tMr Simmonsl mas
raid a feeling tribute to our posteriIy,
saving they would be worthy OF lheit
ancestors and that they would an an
care Of these amounts when we 49,
Mace upon them in the way OIL Dohu
issues p.n
Posterity to Pay Bill
"Ws need not waste any words upon
nosterity in the way of TRIBUTE II
proceed 10 the consummatlon OF th
programme, because the hlghest PUs
sible tribute we can pay to them is sne
fact that we have taken care Oh 60
OOO.OO0,000 and give to them from e.
onO mn mo 10 $4,000, 100000 TO tahe
go 81 They will appreciate the fact
that we had full confidence IN theIL
natriotism and their capacity 10 pear
fLeir nortion of the burdens Of the wsr.
Tbey may not read the speech OF tne
cepstor from North Carolina as a trlo-
,,ta IN them. but they will see that we
bcve nassed over to them that when
v.ill mortgage them and their posteflty
,,rbars for a hundred years. lney
yin know that when we were doing TINS
there was lying alongside OF us tna'
kind of profits which come WIN the
war and go with the -sccuIl odo
lions of $4,000, 900 900 or S6,OOO'OOO,--
he naltrv sum of s2,OO0000 900. or
course. sneak at all times Of this Dill
a. in addition to the tax law now pre-
Mr.. Borah then read extensively from
financial histories Of previous wars. ne
showed how Pitt, after starting on
bond basis. had been compelled 70 rslse
"a nsr cent OF the cost OF the Ma.
noleonic wars by taxes. Because OF
The bonds issued earlier in his admins,
tration, however, when the war close9
ard peace had been restored instead ol
business reviving 1T was found that the
people were loaded with an enormous
"a sunerhuman debt which depressed
ybere there should have been eXhilars-
ton and restraint where there shoulu
have been energy on the part of the
people
SHOULD Pay Our Own Debts
at is easy, it is a facile task 10
issue bonds and TO pass the ouIoen
over 10 posteritv. but We ought 10 bear
in mind that the burden will rest upon
them in a different way from what II
would rest upon those 60 to-day; for
when they come TO pay these bonds
they will have nothing in the way or
war profits or these things which en-
able governments 10 finance war out
Of which TO meet It.
"At that time there will be no escape
from the proposition of unloading these
bonds and the interest upon the bonds
upon consumption. When posteritv
comes 10 pay, having not from $1,000
600 900 to $4,000, 100000 Of war profits
with which TO meet portion of It,
they will have to meet the bond issues
and these vast interest increases by
taxes upon consumption to a very large
extent. There is where the deception
rests; there is where the injustice Is.
"How can we consent 10 take but
1852 600. 900 from these billions of war
profits and pass on to posterity $1,000
0O0, 900 or $4,000, 900 900 in bonds ?
Great Britain adopted a different pol
icy in the Crimesn War, and according
20 the budget speech Of Mr. LLOYD
George, they raised $4,000 900 by loans
and f35,O00,o0O by taxes. Even that
proportion has received severe criti-
cism from finsnciers as not being a
sufficient amount Of taxes and too
large an amount Of bonds
Bond System Failure
"The system of raising money by
taxation and by bonds in the ratio OF
one to two, perhaps, or one to three
or one TO five, has been tried, and IL has
failed in the midst Of war, when the
people were less capable Of respond-
ing, when imitation had occurred. when
high prices had imposed a great bur
den, this extraordinary effort was made
But the people, as has been so well
sad, were compelled to pay perhaps
50O,0O0001 more for the prosecution
of the Civil War than they would have
been called upon 10 pay had the taxa
tion system been adopted in the begin
ming.
ale fe bar11,. or..,.L A. - -