New-York tribune., 1918-02-25


coal situation, a drastic coal order
the breakdown of railway transporta-
ton, the taking over of the railroads by the
government, mounting living costs and price
fixing
These events crowded upon Us while we
were still congratulating ourselves on the
success of the draft the passage Of fuel and
food conservation laws and the unparalleled
subscriptions to Liberty bonds
Enrolmcnts, laws and subscriptions, how
ever, do not represent things accomplished;
they only plans laid out. The test of the
nation comes when we try to execute those
plans. The breakdowns we are experiencing
show the magnitude and difficulties of our
task
We are undergoing a national readjust-
mont to war conditonsa great shift from
peace to footing, the growing pains
of which acute just now, though they
have been experienced, less acutely, for the
last three years.
THIS aco,', the greatest of all, is greatest
especially IN its cost 1t is estimated that
the moncy cost alone, for all nations. is
umuoyd Of $10O 900 O0O, 600. Each a0eeh, it
costs as mutch as did the entire Boer Var;
japanese Wor; each taco months as much
as the entire Ciuu War, achich hitherto
had held the record.
Business as Usual" Delusion
Never before in history has an understand
ing of the simple principles of economies
been sorely needed. Although much is
being done to supply this need, we find the
public confused and vacillating between two
economic philosophies-th simple, direct,
od-fashioncd, correct philosophy of saving
and working and the fallacous philosophy,
perhaps best epitomized as "business as
usual"
So far we let our "busness as usual"
impulses prevent the needed saving and
economic shifting we shall pay a terrific
penalty in higher cost of living as well as
in national ineLficiency and maladjustment
The living cost and the level of commodity
prices in general are now, as we are all
aware. extremely high. The average whole
sale prices in the United States last month
81 per cent above those of Julv, 1914.
that is, the purchasing power of money over
Gods in the wholesale markets has been al
most cut in hall
The rise in retail prices of foods in the
same period has been 81 per cent This
means a reduction to less than two-thirds
IN the purchasing power of money over foods
in tho retail markets. Abroad the rise of
prices has been even greater
Between 1896 and 1914 Wholesale prices in
the United States were rising at the average
rate OF only one-ffth of ! per cent per
month; but even that small rate, long con
uNued, was enough to make the "H. C. L."
very painful fact
Rate of Rise Phenomenal
Since the war wholesale prices in the
United States have been rising at the rate
of nearly per cent per month, or nearly
ten times as fast as before the war In some
countries in Europe the rise in prices has
been two or three times as rapid as in the
United States
While the nay lasts the commodity pyice
!eoeI apjN il7cuitably mount by leaps and
bounds, unless re adopt rigorous pYeren-
tl0e measures. IN particular soe must
aroid. so jar as possible, Icnding by bo1--
roa0ing. Loans to the gorcrament made
not from savimgs 5ut from bo7romings ariN
temd to Increase banh credit Flwther er
tension of bank credit wW chiefy 6yiuo
about q 12Se in cOmmoditu prices
1t is therefore desirable that further loans
to the government should be made out Of
current savings
There are two ways for us to lend money
to our country The right way is the frank
and honest way of saving, by spending less
or earning more The other and wrong
way IS the at first cheap and easy, although
ultimately costly and painful, way Of lendino
me government what we borrow from tho
bank Even that species of robbinp Peter to
pay Paul is, OF course, better than paving
Paul nothing; for Paul, l. e the United
states Treasury, must have the cash. But
1t can be justified only when unavoidable or
when used as temporary cxpedient. and
the debts 50 contracted are soon repaid out
of savings.
II / buy government securities by giving
up the purchase of pleasure automobile tha