El Paso herald. (El Paso, Tex.) 1901-1931, 1918-12-16
PAYING OFF THE BIC WAR DEBT
SHOULD BE A LONG TIME AFFAIR."

WHEN the peace treaty IS signed and eyes are
" turned other matters shall find our war debt
staring in the face
It is quite war debt Including the four Liberty loans
and the issue Of savings stamps, this country has
raised s17oooooooo Statements from Washington
inform that there may be loan for S5000Oo0ooo
next April It is expected that this loan viii be in
the form Of short term security The viii probably
be higher but the maturity shorter and when the period
readustmezt is viii be possible according to fnan-
sl Observers to refund these obligations on low basis
Another loan and another issue Of stamps is to be
expected because the expenses of the government espe
csly IN maintaining great army occupation viii con-
Hue for TO be very heavy Therefore our
Total obligations Of approximately $4,000 100000 after
the next loan be increased by the sale Of stamps
and other certificates Of indebtedness to about s24OO
eVoOOa Our allies already owe US about $500 1000
100000.
Now the question arises this debt to be paid off?
To attempt to pay it in IS years. the rate OF billion
year. would be lay tremendous burden of taxation
on the American people probably seriously hsmpering
their industrial and commercial activity The interest
charge the full debt would alone be s5oooooooo
year. about wo-thirds of the total running the
government year before the war.
The annual government expense before the war was
SPOUT SO0oooooo0 year. For two or three years at
least the cost viii be greatly above that figure when
normal level is finally reached, it viii probably be at
least 81 ,5O0,0 100000 year.
the current year aye expected to reach So
oooooooo and the proposal for next calls for $4,000
An these figures are cited to show that the American
people viii have financial burden which will be
considerable, without taking the debt into consider
alton.
It would be best not to think of retiring the war bonds
either through sinking fund market purchases until
the period Of extraordinary national expenditure has
passed
The adoption Of so year schedule has been suggested
and it has good deal TO recommend it. Beginning so
year schedule Of payment Of the debt when normal
dons reached would that the people must pro-
vide for the expense Of the national govern
neu $500 100000 interest the debt be gTadu
ally reduced each year. sooooOoo the so year sinking
fund provision The total would be S2,4ooooooo0 OF /
nearly two and half times annual expenditures fol
the government before the war
TINS certainly involves program Of heavy enough tax
alton To increase the load would be at the of
ing the countrys business development in all likelihood
The national debt should be paid off rapidly posi-
bic in order to cut off the interest but it must be with
out putting too great burden the people Under the
proper conditions national debt constitutes tie between
government and its people, encouraging them TO pull TO-
gether and to exercise Thrift
may be that the government viii decide to buy some
Of its bonds IN the open market and cancel them instead
Of merely adding to the sinking fund for the ultimate
tsmen Of its Obligations maturity. By adopting this
policy It would be able stimulate the market for its
curtes. It would be good thing for the inexperienced
investor Of whom there millions now, who would thus
get the first substantial animation Of the fact that had
made paying investment instead Of patriotic contribu
ton
Both England and France have large portion Of their
public debt foated IN the form of perpetual low interest
bearing securities Tie problem of their retirement not
present consideration The manufacturers and business
men those countries would advantage those
Of this country if attempted by heavy taxation to
eel or debt in short time.
Prince Henry Of Prussia, made a trip through the
United States long time ago and at the first chance
Ha He has Hnnu re-