New-York tribune., 1918-03-17

sale Of war savings certificates and
thrift stamps has yielded about
s75,0oo,o00. In anticipation of the
third loan, about $1,400,000,000 of
additional certificates of indebted
ness had been placed by March /.
Exclusive, therefore, of the money
raised by these certificates, antici-
pating the next loan, the govern
ment has actually collected for war
purposes total of about $7,65O,000,-
900.
Thus far the government has had
little difficulty in financing its re-
quirements, extraordinary as they
are. But it does not follow that the
outlook for the future is satisfac-
tory. Expenditures for war pur-
poses have run far under estimates,
not because war has been found less
expensive than anticipated, but be-
cause money can be raised-rather
book credits created-more rapidly
than production can be speeded up.
Money could not be spent for
Browning machine guns merely by
appropriating it for that purpose
when no factory in the country
stood In position to turn them out.
Construction Of merchant shipping
could not begin until it was decided
whether the ships should be of wood
or of steel, the plants located, the
materials arranged for and the la
Dor obtained. The discrepancy to
date between costs and estimates af-
fords no cause for congratulation.
The bill must be paid sooner or
later. Even this spring belated con-
struction will add enormously to ex-
penses.
Rate of
Expenditures
We are now expending for war
purposes about $40,OO0000 a day,
or at the annual rate of nearly $15,-
0O0,000,000, and the rate is increas-
ing. 1t is true that $1O,OOO,OOO or
more day is being loaned to our
Allies and will be repaid, but the
task of raising the money remains.
Early estimates of expenditures for
the entire first year of the war
say, to April I, 191S-reached fig
ures as high as 9,OOo,000,O00. Ap-
preparations and contract authoriza-
tions for the fiscal year to end June
80, 1918, total s21, ,390,73O,940. This
total includes $7,00o,00O,0OO of loans
to the Allies. Of the grand total of
appropriations and contract author
izations of s21,390,730,94O to June
80, 1918, there has been raised so
far, by all methods, over $9,OO0,O0O,-
600. Some weeks ago the Secretary
of the Treasury made the statement
that ten billions had to be raised
prior to June 80. Deducting the
81 100000 since raised by GER
tifcates in anticipation of the next
loan, nearly $9,00O,000,0O0 needs to
be raised by June 80. OF the grand
total, the balance Of about two and
one-half billions presumably consists
of authorizations where the actual
expenditures will not be made prior
to the end of the governments fiscal
year.
Forty Billions
In Two Years
1t is probably safe to estimate
that the war will cost us to June 30,
1919, not less than 100000, 1000.
This, of course, figures for the gov
ernment's fiscal year, July 1, 1918,
to June 80, 1919, expenditures of
something less than $20,000,0 100000.
The estimate is hazarded only on the
theory that during the first fiscal
year of the government, while we
are engaged in the war, some large
portion of the expenditures has been
required for preparatory work only,
which may not have to be repeated
in the following year. Neverthe-
less, if the experience of the other
belligerents shall prove to be any
guide, it is much more likely that
next years expenditures will exceed
those for the current year.
Methods of
Raising Money
With an approximation of the
financial requirements in mind, let
us consider the two ways by which
what we colloquially call money"
can be directly raised-through tax
alton or by the use of the credit Of
the government. There is limit
to the amount that can safely be
raised by taxation. Exactly what
that figure will be no one can tell. 1t
IS plain that taxation has already
been carried far enough to make
considerable inroads on our person.
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