davidaulloa/AmericanStories huggingface dataset:
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-01-14

learned again in the school of bitter
experience.
Economic and social decisions,
hOary with age, tried at some stage
of the worlds history and found
wanting and discarded long ago. are
rediscovered by the demagOgues- of
the day and proclaimed by them as
a cure-all, in part honestly no doubt
from lack of thorough study and
clear thinking. and in part disinGen-
uously, for political and personal
advantage. II is too much TO hope
that in the formidable crisis through
which the nations are passing and
the effect Of which will be felt for
many years TO come we shall escape
the militant manifestation of such
tendencies and the onslaught of their
opponents. In the face of them we
should maintain and assert bust
ness-like sobriety of judgment,
should refuse TO De stampeded and
should meet with reasoned and reso-
lutte opposition the Counsels and
proposals of the scheming dema-
gogue or welT-meaning utopianist,
presented and urged as they prob
ably will he under the guise OF war
M. racop CT ructiIn npcpSSitipS
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-01-14

economic potency and prestige. But
in order to retain that position and
fully to utilize it for our country's
welfare. we must be n adv to act
along well-plannei lines and with
suitable instruments at Our hands.
II is none too soon to prepare.
One of the immediate and I'M
portant functions which such body
could fulfill would be to direct
the necessary campaign Of saw
ing (apart from the specific
work of selling Thrift Certificates,
which Mr.. Vanderlip is conducting
so admirably. We must all save,
rich and poor. But Il general eX-
hortationtO save is not enough. The
people ought to be instructed in eX-
act detail how and where and in
what way TO save. If necessary,
such directions ought to be given the
force of law. Some savings are
more needed and more effective than
others. Some are wiser than others.
Certain excuses of saving are actu-
ally unwise, some positively harm
fIrl
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-01-14
NO PATIENCE WITH
GOUGER.

l have no patience with or toler-
ance for the man who would coin
profits out Of his country's war. But
neither have l patience with nor
tolerance for the man who would use
his cOuntry's war as a means to
promote his pet theories or his
political fortunes at thu expense Of
national unity at a time when we
should all be united in mutual
goodwill and cooperative effort.
And II we do talk about the for
mula, 'conscripuon OF men-con-
scription of wealth." let it be under
stood that We have called less than
5 per cent of the nations entire
manhood. but have called from in
comes. business profits and other I'M
posts falling principally on the we'll
TODD. approximately 80 per cent Of
our war taxation, not to mention the
contributions to the Red Cross. the
Y. NJ. c. A., and other war relief
activities.
Let me add in passing that the
children of the well-to-do have been
taken for the war in proportionstely
greater numbers than the children
OF the poor, because those young
men who are needed at home to sup
port dependents or to maintain es-
sential war industries are exempted
from the draft Moreover. to an
overwhelming degree the sons OF the
well-to-do have not waited to be con-
scripted. They have volunteered in
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-01-14
BUSINESS CALM.


The business community had kept
its calm and courage in the face of
war. 1t would have confronted
without more than a passing tremor
the-huge taxation which il was called
upon to bear. But seeing itself faced
not only with huge but with unskil-
full. unintelligible and hampering
taxation, seeing the obsCurity of GER
tain essential features of the law
and the bungling and unscientific
handling of matter of signal mo-
ment to the conntry's well-being, il
is seized with alarm. The disturbance
spreads. confidence is shaken, the in
vestOr throws his securities over
board, corporations and individual
business men suddenly are halted in
their plans. Acute depression has
set in. The loss in quoted security
values alone is not far short of our
total war expenditure for the year.
Yet all this could so easily have
been avoided. venture 10 say that
any six business men and econo-
mists, locked in a room for three days
with statisticians ut their elbow,
could have produced a bill which
would have raised more revenue,
would have been no less in accord
with the dictates Of social justice.
and yet would weigh more lightly
on the country.
A somewhat similar case is the
Railroad legislation which Congress
enacted under the Taft adminlstra-
ton. That legislation represented
the tearing to shredS and the suisse
quent recasting. patching up and ill
devised piecing together by Congress
of a carefully thought out, though, in
my opinion. by no means faultless
measure, which had been introduced
with the backing of the Administra-
ton. You all know the result. The
spirit of enterprise in railrOIding was
killed. llampered, confined. harased
by inccSsant, minute. multifariOus
and sometimes contradictory regula-
tiOns, the initiative on the part of
those in charge OF our railroads was
chilled, the free flow Of investment
capital into that great industry was
halted. creative activity was stopped,
growth was stilied. credit was Grip
pied. 1t is true, there had been
need to correct abuses. In a few
cases-more indeed than there
should have been but still only
sporadic cases. by no means typical
OF railroad administration as a whole
there had been scandals and gross
mismanagement. The theory of
regulation and supervision was all
right But the practical application
of that theory was wholly at fault
and in defiance OF both economic
laws and common sense. 1t was
bound To lead TO Il crisis. 1t is not
the railroads that have broken down.
it is our railroad legislation and
commissions which have broken
down.
! do not mean to criticise individ-
ual Congressman. | criticise the sys-
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-01-14
FUNDAMENTAL QUESTION.

This question of governmental eff
fciency and wisdom in the realm of
economics Is fundamental. It rami-
fies through every phase of the coun-
try's life. More especially in war
time is it essential that the nation
proceed along the lines of wise and
consistent and purposeful planning,
and that business feel reasonably as
sured on that score. For it is vital
during war as well as during the re-
construction period to follow that
production be intensified to the ut
most, and this cannot be done unless
the spirit of enterprise, individual
activity and buoyant faith in the fu-
ture be maintained in the face Of diff
ficulties and trials, and notwith-
standing heavy and unusual fnan-
cial burdens.
We do not complain at any bur-
den within our capacity to bear.
which the necessities of the country
require us to assume, or which real
public opinion, as distinguished
from the noisy advocates of eXtrem-
ism desire to impose upon US. But.
of course, there is a point beyond
which the laying on of burdens can
not go without killing enterprise and
gravely upsetting business, with con-
sequences seriously detrimental to
the Commonwealth and whitening In
their effect upon the capacity of
capital to provide funds for the con-
duct Of the war.
What we business men protest
against is ignorance and shallow
thought assuming the place belong
ing to expert opinion, and still more.
do we protest against demagogism.
envy and prejudice, camouflaging
under the flag of war necessity and
social Justice in order to wage a
campaign through inflammatory ap-
peal, misstatement and specious rea-
sonlng to punish success, despoil
capital and harass business.
One of the catch phrases used by
that contingent with particular FIRE
quency and emphasis, and apparent
~ not without some effect, is the
plausible sounding contention that
because portion of the young man.
hood of the Nation has been con-
scripted, therefore capital must also
be conscripted. Why, that is the
very thing the Government has been
doing. 1t has conScripted a portion,
relatively small portiorI of the
men of the land. 1t has conscripted
a portion, a large portion. of the
incomes of the land. If it went
too far in conscripting men the
country would be crippled. II it
went too far in conscripting incomes
and earnings. the country would
likewise be cl.innlnL
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-01-14
TAX BILL INSTANCED.

A striking instance of this tend
ency is presented in the proceedings
the outcome of which was the tax
bill adopted last October.
First, the House Committee in
charge. after some four weeks study
and discussion, draws up a bill and
reports it to the House. The House
promptly proceeds to tear il to
pieces. Amendment after amendment
is offered and accepted on the floor.
The measure, in its nature intricate,
with one part depending on the other,
is revampcd in running debate and
thus, knocked Out1 of shape, IS
adopted.
Then the Senate Committee takes
hold, giving nearly three months to
the study and preparation of the
measure, hearing experts, saturating
itself thoroughly with the subject
and evolving a carefully drawn and
ell-balanced bill. Reported to the
Senate, it is altered upon the mo-
ton of any member who cam get a
sufficient following to engraft his
notions upon the measure, is funda-
mentally and radically modified and
thrown out OF gear, and thus
adopted.
Both houses of Congress have thus
rejected the painstaking work of
their own committees whose special
function it is to frame financial
measures. and who had given weeks
and months of time to the study of
the problems involved.
The two bills evolved thus largely
on the spur of the moment, so to
speak, are taken into conference. The
weary and discouraged members of
the Conference Committee confer
There is need for hurry because
Congress is clamOring To get through
and adjourn. In a short time, after
debate carried on behind closed doors,
another bill energies, different in
many respects from any that has
gone before, bearing evidence of in
sufficient thought, of makeshift COM
promises and. in certain respects, of
prejudice. With very little discussion
and practically no effective scrutiny
Il hurried Congress adopts that bill.
Many of its details are 30 intricate,
many Of its definitions so obscure,
many of its provisions so unavoidable,
that to this day they have not been
fully unraveled 1t bristles with in
consistencies. 1t embodes no recog-
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-01-14

menSely difficult and eXhauSting
task with signal ability, force and
wisdom and has gained the I'M
plicit confidence and unStinted
admiration not only of men of
affairs but of men in all walks of
life. No better man could have
been selected for the StupendouS
undertaking of directing our vast
railroad system as 4 unit in war
time, and we trust and believe
that by his administration of this
new responsibility he will add
another worthy page to a record
of high and distinguished merit
and achievement.
With all due respect to the repre-
sentatives of the people, and giving
them full credit for hard work and
patriotic effort and individual ability,
can it truthfully be said that Con-
gress has adjusted itself to the
unique demands of the time? 1t
has made no change whatever in its
inherited method, system and pro-
cedure. 1t appears strangely preJu-
diced against expert opinion and is
apt to deal in rough and ready fash
ion with delicate and difficult prob
lens such as those of economies,
profoundly affecting as they do the
NatiOn'S yypll-bpinp.
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-01-14
Known Fnanier of the Country

tenn which has not been brought up to
date and which is no longer adequate
, to the needs of the day. Ours. for
instance, is the only great country
in which no budget system prevails.
Income and outgo are handled by l
don't know how many separate Com
mittees, instead of one central Com
mittee. The Chairmen OF Commit
tees hold their offices by seniority
i instead OF being selected for con-
spicuous fitness. To this day, there Is
no bill-drafting bureau attached to our
National Legislature-such as ex-
lists in every other advanced country
and in many of our States. Con-
gress is now engaged in investlgat-
! ing the results of red tape in certain
departments. But it is Congress IT
self which by cumbersome statutes
and a mass of minute and inelastlc
rules and regulations has spun web
of red tape around Administrative
and executive procedure and agents
and has turned a deaf ear to the call
for the modernization of Government
business methods.
There is no reason why with wise
and sure guidance in economic az
fairs, the inevitable effect of war on
business should lead to the semi-pan-
icky condition which prevailed in our
financial markets last November and
December. After three and half
years of war, the Berlin market IS
steady and there is actually q fair
investment demand. Trade in Eng
land ON the whole is prosperous. In
France at this moment private in
vestors-not the -state-are finding
money for iron and steel works and
shipbuilding plants.
Our foundations are stronger than
those of any other country. but 1t
remains no less necessary that the
right plans. methods and means be
used in rearing the superstructure.
Natural wealth. advantageous loca-
ton and favorable opportunities are
not sufficient to raise a country to
eminence and its people to well-be-
ing. China, for instance, has in
trinsic resources second to perhaps
no other country in the world. II is
incomparably better endowed by ma
ture than the poor, unfertile islands
of japan. Yet China, with her i'm
mense natural wealth, is weak and
poor because individual enterprise
and the impulse of governmental eff
ficiency are lacking. But Japan, by
wise governmental planning and by
the disciplined effort of her people,
has grown rich and powerful, and in
conjunction with China, is offering
field to capital and to men of en-
terprise which we shall do well not
- Observation-Disclosures
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-01-14
FAVORS STRATEGY BOARD

1t seems to me that it would serve
useful purpose if out Of the vari-
Gus commissions now dealing with
economic affairs, or as a separate
body suitably co-Ordinating with
them, the President or the Secretary
of the Treasury were to see. fit to
appoint a Board of Economic and
Financial Strategy ju as the
Army and Navy have boards of ex-
perts to elaborate and deal with
strategic problems. 1t would be the
function of such a Board to study
carefully the exigencies. considered
IS a whole, both of cur immediate
situation and of the conditions likcI-
TO confront US after the war. 1t
would correlate activities now more
or less scattered, and might. if so
desired, act as a bureau to furnish
to Congress centralized and system.
affixed information on economic sub
jects. 1t would prepare a compre-
hensive plan for the marshaling and
intensive utilization of our potential
and actual resources, both during
war times and afterwards.
At present / know of no one gov
ernmentally appointed body charged
specifically with the task of study
ing and advising, on economic post
bellum problems. England, France,
Germany and Italy have such bodies
at work. There is every expecta-
ton that we shall emerge from the
war in a position Of commanding
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-01-14
HAY THINKING.

There is an astonishing lot Of hazy
thinking on the subject Of the uses
, Of capital in the hands of its owners.
! The rich man can only spend a rela-
lively small sum of money unpro-
ductively or selfishly. The money
that it is in his power to actually
! waste is exceedingly limited. The
bulk Of what he has must be spent
and used for productive purposes,
just as would be the case II it were
spent by the Government, with this
difference however, that gener-
ally speaking, the individual is
more painstaking and discriminate
ing in the use Of his funds
and at the same time bolder,
more imaginative, enterprising
and constructive than the Govern
ment with its necessarily bureau
cratic and routine regime possibly
could be. Money in the hands of the
individual Is continuously and fever
ishly on the search for opportunities,
|. e., for creative and productive use;
In the hands OF the Government 1t is
apt to lose a good deal OF its fructi-
Tying energy and ceaseless striving
and to sink instead into placid and
somnolent repose.
OF course, there is not one Of US
worthy Of the name Of a man who
would not willingly go to fight IL
the country needed or wanted us to
fight But the country does not want
or call its entire manhood to fight.
1t does not even call anywhere near
its entire young manhood. II has
called, or intends to call in the i'm
mediate future, perhaps % per cent
Of its physically qualified men be-
tween 20 and 80 years of age, which
means probably from per cent to
) per cent OF its total manhood Of all
ages. In other words. it calls only
for such numbers Of men as appears
indicated by the needs Of the coun-
try. and as corresponds to a pru-
dent estimate of the task before It.
! am far from meaning to COM
pare the loss OF income or profits
with the risk OF life or health to
which men on the firing line are ex-
posed. or to compare financial sac
rifices to those willingly and proudly
borne by the youth Of our land and
shared by those near and dear to
them. But | do believe II to be
a Just contention-not in the inter
est of the individual. but Of the vel
fare of the community-that the
same principle which is applied in
the case of the CONSUMPTION OF men
should hold good for the conscrip-
ton Of income or profits; /. ne, SO
much thereof should be taken by the
State as is required by a prudent
estimate OF the task before II and as
best promotes the accomplishment
of that task, bearing in mind that
the preservation OF the country's
economic power is next in i'm
portance for winning the war to its
military power. Vindictiveness, ex-
tremist theories and demagogism
ought to have no place in arriving
at that estimate
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-01-14
SAVINGS WIDE AID.

Moreover, the national benefit de-
rived from saving is not and cannot
be accomplished entirely by the in
dividual. If he saves ten dollars. the
immediate result is that he can loan
that amount to the Government. But
an equally important result is that
TO the extent of ten dollars he has
set labor free from private purposes
to war purposes. How TO direct and
utilize the labor thus set free by
private thrift is tine task-and q
highly important task-of the Gov
eminent. AS the lessons of economy
are more fully learned or enforced
and practiced, the aggregate of la
Dor released by that process will
amount to a very large total. do
not know that any governmental
agency is now charged with the or
ganizing and handling of this very
weighty matter, though | believe a
measure having this end in view has
been introduced in Congress.
We are fighting the most per
fectly organized machine the world
has ever seen. Democracy has a
not undeserved reputation for blum
dering and for scattering or misdi-
recting its energies. To meet sue
cessfully the marvelously organized
power of German autocracy, We must
take a leaf out of its book. One of
the main reasons for Germany's re-
markable development in peace and
amazing power of resistance in war,
is the way she has dealt with the
complex and difficult problems of
economic, commercial, and fis-
cal policy. She recognized long
since that such problems can
not be successfully handled hap
hazardly and in town-meeting
fashion, still less can they be made
the football of politics. The German
way has been to turn such matters
over for study and report to those
best qualified by experience and
training, and thus having obtained
expert advice to respect it and in its
large outlines to follow it. England
and France, though less rigidly, are
following the same method, especial
ly since the stern requirements of
war have enforced the need of ma
tional efficiency. Fundamental eco
nomic measures, such as the ALIEN
bracing subject of taxation, are sub
mitted to the careful study of finan-
ciers and other experts. Upon the
basis of the views of these experts
in combination With their own
studies, the responsible officers of the
government prepare a thoroughly
matured and comprehensive plan, cal
culated to produce the maximum of
results with the minimum of dis
turbance. This plan is then intro
duced into and recommended TO the
legislature. The representatives of
the people criticise, modify. add here,
take off there, but nearly always they
preserve the broad outlines which
the consensus of expert opinion has
indicated as appropriate and advan-
fauaouE
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-01-14
WAR WASTAGE GREAT.

The wastage of war Is enormous,
but most of the money the Govern
ment spends is used at home, and
the temporary burden can be borne
without causing too great a strain
provided we all bend our backs to
it and the load is not too unwisely
adjusted by our legislators. In
many ways we are establishing ma
tional assets of the greatest value,
we are creating for ourselves world
aspects and a world-position such
as we never had before, we are be-
coming a creditor nation of COM
manding potency, we are scrapplng
and overhauling and inventing, AMI
the Nation is learning the lesson of
cooperation. Unless we make grave
mistakes of omission or commission,
we have a right latter the temporary
disturbance probably incidental to
reimbursement from a war to a peace
basis to look for a period of great
prosperity and 'auspicious achieve
ment after the war, and / believe
we shall all be surprised to see with
what ease the Nation will be able to
carry the burdens which we shall
have inherited from our war eXpen-
ditures always provided that cur
house is ordered with reasonable
wisdom by those in authority.
No doubt, serious and complex
problems must be solved, both whilst
the Nation is at war and in the
period of reconstruction and read
iustmpnt which will set in with the
coming of peace. No doubt, these
problems will test our wisdom and
foresight. But / am entirely con-
WINGED of our ability to meet the
situation successfully if we mobilize
the brain power of the Nation, and
if due weight is accorded to the OK
perience and matured judgment of
tic spokesman of business, and if,
whilst recognizing and respecting
the demands of progress and social
justice, we do not venture too far
into ,,pcb a " cd u-a+prS
The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1918-01-14
THE Duty OF
AMERICANS
Who ARE OF
GE.RMANB|RTH

masses-a far greater percentage q
them than those in less advantag-
eou5 circumstances. That is merely
as II should be. Having greater ad-
vantages, they have corresponding
duties. Not having dependents 70
take care Of, they can better At
ford to volunteer than those less
fortunately situated. But the patTi-
otto zeal OF the sons Of the well-to-
do in coming forward to offer their
lives to the country does give q dou-
bly, false and sickening sound to the
rantinR Nof the agitator who would
arouse class hatred-who calls this
"a rich mans war and a poor mans
fight" when an overwhelming per-
centage of the sons Of the men Of
means have eagerly and freely offer
ed themselves for military service,
when the exemption regulations dis
criminate not, as in former wars, IN
favor of the rich mans son but IN
favor of the poor woman's son, and
when capital and business pay more
than four-fifths Of our war taxation
directly and q large share Of the 70
manning one-fifth indirectly.
The promoters of disunion believe,
or at least want others to think they
believe, that our entrance into the
war was fomented by "big business
from selfish reasons and for the pur-
pose Of gain, and they assert that
wealth is being taxed here with I'M
due leniency as compared TO the bur-
den laid upon il in other countries.