New-York tribune., 1918-02-24

bank for the purpose increasing that win
increase the member banks oanng by some or
eight times the deposit and how is possible for the Federal
banks whether the member banks will such
in making loans representing production? simply
out of the question think for moment they prevent such
imitation. We should profit by War Savings Stamp expert
Many people not accustomed to the saving habit denied
themselves for few days uxures in order to get
the cards. and afterward sold the stamps to merchant
Such people like the who does without and
acts the gluon the next Such socaled economies worth
less in aiding to win the 1t is only the persistent effort
all in economies in foodsus and savings out of earnings
and investing them government securities which will the
war for us. That is the way the British doing it.
The purpose of the War Finance Corporation being
render aid in winning the creating engines dsruc
ton it naturally follows that of it's paper will be liquid
and place such the credit will only weaken
our credit institutions and possibly whole credit ma
chine break just did in 1907 but expediency
will not tend to bring about the economies which
be brought about to win the 1t makes difference
whether the directly aids the enterprises engaged
in winning the does through proposed corporation
10 be controlled by the officials the gov
ernment did it.
Raise Interest Rate If Necessary
If the enterprises engaged exclusively in producing
material could create liquid paper then the proposed cor
poraon because Federal Reserve system
and will take of the situation To illustrate let's sup
enterprise manufacturing shells be aided by the
proposed corporation That waste for those shells be
shot away The the enterprise those
Shells There but two ways which the government can
discharge that debt and nure credit institutions of the
country One to raise the by taxation and the other
by the sale of its funded debt the people, the govern
ent can't fund that obligation at per cent raise the
rate to cent whatever rate the people require But let
be permanent investment. Make nonransfer
able during the and start educational campaign to sell
such bonds and keep that until the the war
ard this raise dollar to win the
fight
This policy would enforce economies, the thing we
must ave for the public would have the xres
OF life IN order to invest in that debt On the other hand we
give the proposed corporation the right credit
instruments by the supendous of billion dollars and
thereby increase the facilities for imitation by same amount
we will not only exavagance great danger
OF the breaking down of the whole credit system If does not
break down during the will Immediately thereafter and
Will require years and to from such disaster
Let repeat This be accomplished only bv the press
Let the Administration naugurae such campaign for the
press and keep everasng at until the the war and
we will out ofhe ready capture foreign markets
tor our surplus products When the boys return from the
trenches we must have something for them the price
OF labor will fall to such low level that to meet with
dire disaster But cannot them employment unless we
have sound credit machine which enable us TO cantre for
eign markets for surplus products Germany will be in
eporabe plight at the end of the by reason of her bad
financial policy. [. T. McFADDEN
Washington D. c.. Feb. 49, 1918