The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1918-04-10
By WILLIAM A. SCOTT
director ut the Course in Commerce,
University of Wisconsin.

professor ~roti. a. the author of
Money and Ranking. and other a.
nnurinl trcnt.scs. aud one OF the mon
who helped 20 shape the federal reserve
banking net. is recognized bN bankers
and economists as uu authority ou mon.
cy and credit problems
This war has imposed upon our nation
two gigantic tasks-dt-t. the selection
and training of on army and navy ~
millions of men; aud. second. their
| equipment with the food. clothing. muui.
| tiuus. ships. etc.. necessary for sucrcss.
| fur Warfare ou the other side OF the
ocean.
To the SECOND of these tasks there are
two phases, namely. that ~ transferring
to the government q sufficient portion Of
our individual incomes tu meet the cnur.
| nous expenditures involved, aud the re-.
' organization of our industrial activities
in such o. manner as ~ insure the pro.
ductiou of war commodities IN sufficient
volume aud their delivery t0 our soldier.
az the times aud IN the places ia which
they are wanted.
The magnitude of the task of supply.
ING pur government the requisite funds
IN NNNiNNl NNfNN wv NMN INV UNIV f'NAN'NA
80 the best estimates the aggregate ~
the annual incomes Of the people Of this
country does not exceed forty billion
dollars, while our annual war cNpendi.
lures will not be less than fifteen billion
dollars. II is. therefore. obvious that,
su long us the war lasts, We must trans.
fer TO the Government each year not
less than onc.fourth. very likely unc'
I'LL L.. --. I.Ns 80 .AV .U.N.s..N
uni Incomes.
From this very stubborn fact there Is
uo possible escape except by Abandoning
the war or 10y reducing our contribution
20 il IN mea aud equipment 10 such n
degree as would result IN it, abandon.
mcnt by our allies. alternatives 10 which
no red. bloodcd American will give q mo-
mcni = consideration
We Cannot Borrow Abroad.
The reason why there IN no escape
from this uncomfortable situation ~ the
fact that We cannot borrow from for
ciuu countries. ~ We have always hith.
;, crtu been able 10 do. The drain of wa
upou our allies has already been va great
that they are not only not abb go max,
any loans CO.. contributions 20 ms, hut are
mo- longer able 10 supply their own wants
4 without our help Instead of borrowing
from them, wc must lend 90 them.
Domestic borrowing does not offer 81
menus ut escape. II simply cnnhlrs som'
~ us temporarily 10 pay less than oui
share Of the expenses, oth"rs-thc do
mcstic boudholdrrs- paying more thar
their share ON condition ~ being ~
paid the excess with interest IN the fu
turr. Is does nor enable the nation q
shift one ounce of the burden.
TaNatiun and loans ara the only meth
uds OF transferring income from th,
pockets Of the people ~ the publil
Treasury. The form,r involves compul
sion. while the latter is purely volun
tary. our government has adopted
comhinution.ot these tNu, proposing thi
first wear 20 collect about one Gfth o
the amount needed by taxation and :,
appeal H. us voluntarily 20 supply tn,
other fuur-dfths in the form Of Lihcrt.
Loans aud War Savings,
Savings Must BE Increased.
Roth Of these methods assume that III
savings of the people from current in
come will he adequate during each yea
to supply the government needs an
y that means in the present ease that "
d. must ~ least treble our normal saving
which. according 10 the best estimate
v have amounted to about Eve billion do
d lars "a year. We cannot transfer 20 th
$ government what We do not possess. an