Every evening, Wilmington daily commercial. (Wilmington, Del.) 1878-1928, 1918-06-12
The Fourth
Liberty Loan

ture but it is not The fourth liberty
Loan is already occupying a large place
in the minds Of the treasury officials who
will have charge of its conduct, and they
are generously anxious that the public
share their interest in tho subject
For the tremendous flow Of revenue
which il necessary to the support Of our
war program can be maintained only by
the continuous, resolute cooperation
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 expressly for them.
II is the duty Of every citizen 10 de
tcrrnine now how much Of his income he
can possibly lend the government, and to
lay that amount aside for Investment m
government securities as regularly as
though he were saving 1t TO pay the rent.
This method Of providing in advance for
future Liberty Loans IL urged upon the
investor by Lewis r. Franklin, director
Of the war loan organization.
A TREMENDOUSLY BIO PROBLEM
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 II may be gained from the facts
that the earning capacity of all the people
and all the property IN the United States
IL 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. ii will not be long before two
fifths OF our total national income Will hc
spent on the war For every FIVE dollars
earned, two dollars must flow through the
Treasury Department If we are dong
our share In the support Of tire war two
fifths Of our earnings must go TO pay red
era taxes and to the purchase Of nited
States government securities. OF course,
not every one can do this 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 u make up a war fund Of fifteen
billions a year was compiled by one Of the
great New York banks According 10 this
table the man with an income Of $3.50 a
year should pay in taxes or lend TO the
government 90 per cent of bis income,
one who makes 81 500 a year should
contribute - ; per cent and 50 on up n
the man who draws q million year,
and who should pay eighty 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 year ali Of these
percentages would now have 70 be in
creased But the point Is that Il takes a
large part Of all the money that all Of
us can make 10 keep the war machine
going. What is not voluntarily loaned
10 the government by the purchase Of
bonds and war savings stamps will have
70 be taken in the form Of taxes
HERE 5 A REASON
This latter fact makes it especially
to the interest Of persons Of property
10 subscribe to the Liberty Loans, for
taxation falls more upon wealth than
upon earning capacity This fact vas
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 way In which the farmers responded
TO It,
The public not only fails 70 realize the
magnitude of this war revenue problem,
and the responsible which 1t places upon
every citizen. but 1t also fails 10 under
stand that this money Is only a symbol,
that materials OF industry and labor Of men
are the things We must save and place at
the disposal OF the government. If the
government has a million dollars with
which 10 buy steel, but there Is no steel
to be had because 1t Is all being used 10
the making of non-essentlal things, then
the paper and coin are worthless Tor war
purposes That Is why wartime economy
Is such real need, and why every argu-
ment for business as usual Is a sophIs-
try
Business as usual means manufacturing
as usual and We cannot manufacture
all of the non-essential and useless articles
which were made during peace time,
when two-6fths Of all our materials must
be used TO make munitions, and two
tifths of all our labor must be engaged IN
making them That Is why the govern
ment, through its food administration and
its pro rites board, has so severely limited
the use of all sorts of materials for the
making of non-essentials The govern
ment now controls all of the steel and all
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 of grain IN making
breakfast foods.
No GOVERNMENT CONTROL.
But the government has no control
over the way in which non-war industries
use the materials allotted to them. The
result Is that enormous quantities OF the
most essential materials are still wasted
in the manufacture OF non-eSsential
articles This waste must be eliminated
by the voluntary cooperation of the
merchants and of the buying public.
The point may be illustrated by CON
versatlon which took place between
treasury official and the manager of a large
department store This store, like all
of the others, Is now selling 10 women
enormous quantities of summer waists,
made of the himsiest materials, high
priced, and designed to be worn only
few months The finance expert pointed
out TO the merchant that this represented
In great part 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 return in
service. The same Is true of women
shoes, which have uppers eight inches
high, three inch heels, and thin, papery
oles, largely representing waste of ma
terlal and labor at time when the govern
ment sorely needs both
The merchant replied that women
demand these fimsy and costly things, and
that his income would be seriously cur
tailed if he did not sell them
II bought $500. 900 worth of Liberty