New Britain herald., 1917-11-03
WORK 0F FOUR MEN
 FOR ONE SOLDIER
Army of One Million Soldiers Re-
 quires Four Million Workers
WE NEED 1o,o00,o0o MEN
Reserve Board Member Says the UlH. mate Terms of Our War Financing Must Be Not Money, But What Money Will Buy-Bond Issues.


 Philadelphia. Nov. 3-with a warn ing that imitation already had begun, A. c. Miller, member of the federal reserve board, told the national con- terence on financing the war here to- oay that American business must not undertake to carry the war as an extra,' but must exercise the vision and imagination necessary to see the great changes in economic organiza- ton essential to victory.
 MT. Miller pointed to the increase Tn federal reserve bank investments as evidence of the existence of infla- ton, partially responsible for the rise Tn commodity prices since the United States went to war, and declared that if this increase continued 1t was not unreasonable to expect that before long the reserve system would be made into great engine of banking infAtion. He explained the process by which great imitation has been caused in Germany and France through government borrowing from the banks, and added ~ Fl have 1t on competent authority" he said, "that 1t takes the labor of four men, working in industries of one kind or another producing mili- tary' and, other needed supplies, to maintain one soldier at the front. This means that an army of 1,O0O,- 900 men will require. the output of 1000, 900 men working in factory, field and foundry. @
 1T also have 1t on competent au- thority that the munitions, provisions and other maintenance that the armies and civilian populations of our Allies in Europe must have from us will require the output of more than 10000. 900 laborers working in this. country. 2
 If we accept as approximately ac- curate the estimates of our present available labor supply as amounting to thirty million workers. the magnt- tutle of the economic problems with which we ara chn&Fotted Is suggoSt- cd by the fe0 t6dnent that S'oa1e-half or more of our existing labor supply must, during the war, be devoted to the producing of materials and sup plies to be consumed by our own and the armies of our Allies and the civilian populations of the nations in Europe which are dependent on us for part of their necessary keep"
 II cannot believe, he continued, that those who are sponsoring the doctrine of business as usual can appreciate the economic significance of the doctrine. The man who knoW- ingly breaches the doctrine of 'busi- ness as usual at this time Is propos- ing that private advantage should be set against or ahead of public neces- sity. At this crisis in the nations life every business, no matter what its na- ture, is affected with 8 public interest, and the public has the right to deter mine within what limits that business shall be .circumscribed in the interest of the war, or to what extent 1t shall be helped and fostered in the same interest. The American business sys- tenn is an important factor in this war. If 1t fails in rising to the occasion through cowardice. weakness or sell fishness, it will have gone a long way toward sounding its death knell and surrendering to other agencies the right of leadership in the great pro- cesses of economic reconstruction which must take place at the close of the war.
 Summing up his survey of the s1tu- ation. Mr. Miller reached these con- clusions:
 "The ultimate terms of our war financing must be, not money, but what money will buy
 Vast as our proposed expenditures and advances are, there is reason to believe that they can be met without the use of any doubtful or wasteful expedients of finance.
 Any attempt to carry the war as an extra would pave the way for an abuse of loans and 8 certain imitation of credit and prices which in the end would increase the probable cost Of the war by as much as 26 per cent.
 "Government bond issues. to be safe, must be bottomed on real saV- ings. Intensive and discriminating savings of promoting thrift are ne- cessary ingredients in any eHec'lVe program of war finance