New-York tribune., 1918-08-18

through casualty massacre and fam
inc, the world is to-day even r;ch.
per capita than it was four ve,,.
ago.
All these war burdens mean. thu,
substantially nothing in terms 4,
their effect on the sum of ey;s+;s.
wealth, either for increase or e..
decrease. But they mean much "a,
the distribution of the ownership A,
existing wealth and still more fl,
the distribution of the future !,
come from wealth and from huma,
labor. The children of some Of ",
must pay interest to the children n
others of us. The bonds are obn
cations Of the people in general I,
the bondholders. BY virtue of hol.
ing these membranes on the fut
ure revenues Of the government
revenues which are to be COLLECTED
partly out of future property in.
comes and partly out of future in.
comes from human effort-the in.
vesting classes are holders of mort.
cages on the wealth and the man
power of the country.
1t is no part of the immediata
task to inquire how far the issue Of
these bonds is well or i'll, fair Or
unfair, necessary or gratuitous, in
the policies of war finance. Ther.
are men enough to believe that
having to get the funds somehow. We
could get them in no other way
tn, how much we can collect from
the citizen depends not on what
share Of his income he can spare
above his necessities, but rather on
the nature Of the slip of paper that
he receives in settlement of his pay.
ment, whether it be a receipt or
promise, refers to past or future,
evidences release from obligation or
requirement of obligation.
Bonds and
Endurance
The question Of immediate inter-
est, however, is quite another. What
do these bonds mean to any nation
for purposes of war endurance? In
purely economic and industrial as
poets, war needs not carry with It
any menace Of exhaustion. Man
power may be lacking to 60 over
seas to the firing line, or man power
may be lacking at home to maintain
the soldiers on the firing line. More
men may be call to the colors than
the civil population can maintain.
In any of these ways economic de-
bacle may befall. But never need
it be a question Of the progressive
sapping of the property resources
of any country that must rely OF
does rely on its own productive
powers. Economic exhaustion,
wealth exhaustion, is one thing
financial exhaustion another and q
quite distinct thing, no matter how
constantly they may get confused.
The Entente is not now nearing
economic exhaustion, and need neV'
er near it. The warning countries
are safe from seriously comproms-
ing themselves in point Of wealth
for the sole and sufficient reason
that they cannot.
The Limits
OF War Effort
But they are in serious danger
Of using up their credit--precises
because they can. Tempted by 1n'
delusive ease of credit EXTENSION
we may engage ourselves in enolS
and undertakings disastrously Vs'
yond our powers of maintenance
and performance. Economic pows'
has economic limits. Two nilil'Op
men are costing US now--witn ou'
other tasks-eighteen billlonS
year, $4,000 per man; and yeS' wiz
fifty billions Of annual natonai -
come, we are talking of placing w
100000 men in the field and OF SCI
ing at the same time as base OF IVY
plies for our associate nations III -.
war. Again 1t is possible TO no.
fioated so many bonds that we ~,
it impossible to float more. Va wv
reach political upheaval by impv.
ing sacrifices unfairly or by no.
ing them impossible or intolefap''
Confined on page ttretse
n III