New-York tribune., 1918-03-17
BY Howard S. Mott
Vice-presidemt Irving National BAN

0CANA4 Wo uuUCIStALO tuAL
participation in a world
war is a piece of extrava-
gance which cannot be paid for out
of normal income. We may be sat-
isfied-in fact, we are firmly con-
vinced-that such governmental ex-
travagance is justified, that it is es-
sential, that we would not have it
otherwise. 1t really is not extrava
gance at all except for the picture
which that word paints Of the rela-
tionship Of present national ex-
penditure to normal sources Of in
come. Quite as clearly we know
that the government, being merely
ourselves politically incorporated,
enjoys no income except that which
it derives from us through taxation
of our incomes, or by borrowing
portions of our stores of capital.
But only vaguely do most people
understand the significance of the
devious and indirect methods of OBJ
tanning our capital without borrow
ing from US openly. Our financial
strength has often been spoken of
as limitless. Perhaps it is well to
know the facts regarding the cur
rent cost Of our participation in the
war, whence the money has come to
finance 1t thus far, and whence and
how it must and should come here
after to carry to successful compile
tion the vast undertaking in which
we are engaged.
A Pacific
Democracy
In the early spring Of 1917 the
United States Of America, the only
world power not participating in the
great conflict, was, as every one is
aware, entirely unprepared for ac-
tive participation. Our army was
pitifully inadequate in point of
numbers and equipment. Our navy,
which had been second only to that
of Great Britain shortly after the
Spanish War, had not kept pace
with it's rivals. Our air service
practically did not exist. In spite
of ample resources in men, materi-
ais and money, we labored under
handicaps inseparable from pacific
democracy, namely, lack Of organi-
zation, lack of discipline and, as
pitiful as the size of our army, lack
of comprehension. Suddenly the ma
ton was plunged into a war exceed
ing in scope anything before con-
ceived possible, making unprece-
dented demands upon the national
life and wealth, and waged against
an opponent strong, unscrupulous
and determined. The task facing
the country became one Of trans
forming into a war machine capable
of victory peaceful agricultural
and industrial population, unpre-
pared, unaroused, and scattered
over the wide expanse of a country
three to six thousand miles from
Flanders.
Transition From
Peace to War
The broad outlines of what has
been accomplished we all know. The
army has been raised from al out
100000 men in April, 1917, to over
100000. Ten million men have
been registered under a universal
service act that will prove lasting
monument to a self-governing peo-
pie. The Secretary of War states
that half million men will be in
France this spring and that another
million will cross the Atlantic this
year. The navy's personnel has
multiplied to 100000. Feverish con-
struction of small naval vessels has
proceeded, and, as to destroyers at
least, we are told, their number will
soon exceed that of any navy afoat.
After heart-breaking delays, mill
ions Of tons of shipping are under
construction. Enemy shipping has
been commandeered; 250,000 miles
Of railroad have passed to Federal
control; prices Of materials and
commodities have been fixed; regu-
lation of industry undertaken. An
extensive air programme is being
carried out Billions of dollars have
been loaned to our allies. These and
thousand other things have
marked the progress Of the nation
toward the condition where it will
become a military power of decisive
strength.
The Money
Cost of War
This preparation for, rather than
participation in, the war from the
beginning Of April, 1917, to the end
OF February, 1918, cost the coun-
try considerably over eight billions