Daily capital journal. (Salem, Oregon) 1903-1919, 1917-07-26
APITAI JOURNAL
whose guaranteed
Audit of Cireulatiops
BOND ISSUES A NECESSITY

At the recent session OF the grange state Master
Spence among other recommendations suggested that we
should finance the go instead OF by bond issues
1t is quite probable that at the time this recommendation
was made Mr. Spence did not have any idea the amount
required would be half great it has proved to be-
Neither he the country at that time had become ac
customed to thinking in billions Senator Smoot recently
asserted Americas part Of the cost of the first year after
her entering the would be above seventeen billion
dollars That he has not overstaed the amount is con-
ceded We will not only have to tnance our part IN the
war but we will have to extend liberal aid to the allies
Had the grange master realized the immensely OF the
sums we would be called to contribute ne would per-
haps not have made the recommendation 10 raise sucn
sum in one year. as he proposed by conlscatng all IN
comes above 100000 and other drastic measures would
parayze every industry in the country and shut off all
sources of in the future This is sum more than
four times great all the coin both gold and silver
in the United States.
Congress is trying to arrange a plan for raising
revenue that while will bear heavily on big incomes and
also on many industries, will yet not put them out OIL
business Its idea raise large sum- as large as can
well be done to apply toward conducting the war; and so
make the bond issues light possible 1t must not be
overlooked that the named is for year only and
the war may last two three even more years Another
feature of the matter is that it will take great deal of
coin to handle the vast factories made necessary by the
war; to build ships and aerOplaneS make war munitions
and clothing for the boys at the 'front.' ana TO Keep tne
properly supplied with food This means further that as
the sum we must raise is many times larger than the
total of money in the country that the factories and
farms must get busy and make or grow something wch
the government needs and for which 1T can eXpend the
vast sum and return it again to the channels OF trade
In other words must produce something worth seven
teen billion dollars 1t may be transportation it may be
service as soldiers it may be any Of countless things
from field and factory but in the aggregate must
produce something that the government will spend its
seventeen billion dollars for. We must produce enough
every three months to equal in value about three billions
of dollars Indeed will perhaps have to produce stu
more for the money lend the allies will most OF 1t be
expended in this country and we will have to produce
something they can buy with the money we lend them;
This would mean still further production that would
make the grand total four billions at least every three
months It can readily be that these sums cannot be
raised by taxation, one might say in any FORM even
though every possible method Of taxation should be re-
sorted to- The issuing Of bonds therefore becomes
necessity We may keep the taxes high after the and
SO in few years reduce the debt will make to
minimum, or wipe it out entirely. The United States
with its great productiveness need not fear dept na5
would swamp other countries for with little self denial
and little time she pay.