New-York tribune., 1918-02-24
War Finance Corporation Bill Would Pmiamze American Credit


namely upward when used for consumption waste specua
on and downward when used for the production of the
sites of Life 1t will be observed therefore through the
and the only to which credit is placed that of
odte advance decline. Commodity prices governed
by the law of supply and demand Therefore, whatever in
the supply decreases the demand for commodities
will decrease the thereof whatever decreases the
ply increases the demand will increase the prices of
modities
We daily observe the effect of that nexorabe law when
thousands hundreds Of thousands millions of
being taken out of productive pursuits and placed the bus
ness of destruction, (which wase in the army and munon
factories But that condition which invariably brings
about We know the best decrease the of living
to increase production but foolish talk increased pro-
ducton to people engaged in to laugh drown
ing for grabbing at straw instead lifeline within
his reach So the only salvation for people engaged
to practise enforced and here the potent n
of the The public deny itself the uxues of
life and invest penny it has in government securities
Observe what has happened in Europe While Germany has
pursued device imaginable to the materials for
carrying the issuing tens of billions of credit nstru
ents Great Britain has the opposite course per
cent OF the aters has been raised by taxation and
the balance by selling the permanent securities of the govern
ment Yet commodity for most of the essentials life
as cheap in Germany as in Great Britain
Compulsory Saving and Production
Why that SO? Simply because German war machine
the ruthless instrument of orce production
essentials That say she has placed prisoners
at work and made them do two mems work She has used the
same effective instrument in enforcing Every living
creature in Germany must work the fullest capacity that
too on half ration She employs the force enforcing
economies The vast horde of spies employed enforce the
bread and fat card system shoot first those violating that law
and talk about aferwar It's the way with the workers
who strike. In such country it little how much
credit the people possess it worthless to them
in the purchase of those things their souls
happen to the German credit system after the war; when the
people exercise authority the future alone tell
Therefore, for to attempt follow footsteps of
German finance shall show the War Finance bill proposes
WILL be folly in the extreme for have the machine
prevent the imitation which result from such an
act and the breaking down of credit SYSTEM
We should try to follow the footsteps great demo-
cratic ally Great Britain in financing this war; and the gst
OF her policy is to avoid the issuance of facilities for consmp
ton 1t is not effective remedy as the German but
her credit system will be intact of the war For
generations consuptve credit has been almost prohibited in
Great Britain and that has been the our country since
the birth of nation.
Claims of Reserve and Treasury Officials
When the Secretary of the Treasury and the governor and
deputy of the Federal Reserve appeared before
the Finance Committee of the Senate advocacy of the war
nance b and defence of the provision giving the
corporation authority to issue of it's notes and
credit obligations which by the bill made "elgbe for