The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1918-06-13
TOPEKA STATE JOURNAL
INFO RIM A TION
Blu REA
THE FOURTH LIBERTY LOAN.
FREDERIC ]. HAsKrN. Director.
Washington. D. c.

Washington, D. c., June 12.-Pre-
pare for the fourth liberty loan! Since
the dust raised by the whirlwind pro-
gress of the third one has scarcely had
time to settle. this may seem prema-
ture; but it is not. The fourth I'D
erty loan is already occupying a large
place in the minds of the treasury Of
ficials who will have charge of It's
conduct, and they are generously anx-
ious that the public share their interest
in the subject.
For the tremendous flow of revenue
which is necessary to the support OF
our war program can be maintained
only by the continuous, resolute CO.
operation of the American people.
Three liberty loans have been floated
on freshets of patriotic enthusiasm.
These have taken up many OF the
small savings accounts and much OF
the readily available capital in larger
amounts. The future liberty loans will
have to consist of money saved ex-
pressly for them. 1t is the duty OF
every citizen to determine now how
much of his income he can possibly
lend the government, and to lay that
amount aside for investment in gov
eminent securities as regularly as tho
he were saving it to pay the rent. This
method of providing in advance for
future liberty loans is urged upon the
investor by Lewis B. Franklin. director
of the war loan organization.
The magnitude of this problem OF
financing the war is realized only by
a few men who have the job in
hand An idea of it may be gained
from the facts that the earning capac-
ity of all the people and all the prop
erty in the United States is estimated
at about fifty billion dollars, that we
spent about eleven billions during the
first year of war, and will spend over
twenty billions in the coming year,
these figures including loans to our
allies. In a word, it will not be long
before two-fifths of our total national
income will be spent on the war. For
every five dollars earned, two dollars
must flow through the treasury de-
partment. If we are doing our share
in the support of the war two-fifths
of our earnings must go to pay fed
eral taxes and to the purchase of
United States government securities.
much. which means that those who
have large incomes must do more. a
table showing just how much might
be contributed from incomes of all
sizes in order to make up a war fund
of fifteen billions a year was compiled
by one of the great New York banks.
According to this table the man with
an income of $3.50 year should pay
in taxes or lend to the government 9.6
per cent of his income; one who
makes $4,000 a year should contribute
22.5 per cent, and so on up to the
man who draws million a year. and
who should pay so per cent of that
amount to his government in the form
OF taxes and purchases of bonds.
Since our expenditures are already
more than fifteen billions a year, all
to be increased. But the point is that
1t takes large part of all the money
that all of us can make to keep the
war machine going. What is not
voluntarily loaned to the government
by the purchase of bonds and war
savings stamps will have to be taken
In the form of taxes.
This latter fact makes 1t especially
to the interest of persons of property
to subscribe to the liberty loans, for
taxation falls more upon wealth than
upon earning capacity. This fact was
very readily perceived by the big
financiers of the country, who took
the tax-free bonds of the first liberty
loan in large quantities. The second
liberty loan was carried largely by the
patriotism of wage earners, while the
striking feature of the third was the
to it.
The public not only fails to realize
the magnitude of this war revenue
problem, and the responsibility which
1t places upon every citizen. but it also
fails to understand that this money is
only a symbol, that materials of in
dustry AMI la5o- of men are the things
We must have and place at the dis
posal of t. government. If the gov
eminent, has million dollars with
which to buy steel, but there is no
steel to be had because it is all being
used in the making of nonessentfal
things, then the paper and coin are
worthless for war purposes. That is
why war time economy is such a real
need. and why every argument for
business as usual" is a sophistry.
Business as usual means manufa c.
turing as usual, and we cannot manu-
facture all of the non-essentiaI and
useless articles which were made dur
Ing peace time, when two-fifths of all
our materials must be used to make
munitions, and two-fifth of all our la
nor must be engaged in making them.
That is why the government, thru its
food administration and its priorities
board, has so severely limited the use
q all sorts of materials for the MAX
ing of non-essentials. The government
now controls all of the steel and ali
OF the wool in the country, allowing
to non-war industries what it can
spare. In like manner it has limited
the use of sugar in making candy, and
VI grain in making breakfast foods.
But the government has no control
over the way in which non-war indus
tries use the materials allotted to
them. The result is that enormous
Quantities of the most essential ma
terials are still wasted in the manu-
tacture of non-essential articles. This
waste must be eliminated by the vol
untary cooperation of the merchants
and of the buying public.
The point may be illustrated by a
conversation which took place be-
tween treasury official and the man
aser of large department store This
store, like all of the others, is now
selling to women enormous quantities
of summer waists, made of the flimsi.
est materials, high priced, and de-
signed to be worn only a few months.
The finance expert pointed out to the
merchant that this represented in
great part a loss which the country
could not afford: the material put
into the waists and the labor used in
making them, do not give a sufficient