South Bend news-times. (South Bend, Ind.) 1913-1938, 1918-11-28
Financial Balance
All In Our Favor

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America mergss from the wa- q creditor
Estion. In other words, the financial bal
anes for the frst time In history Is all Ia
her favor.
When America entered the var she auto.
enatieally assumed responsibility a. the
worlds banker. Creditebly - meet And
discharge that responsibility she has built
up . vast and smooth running financial
machine that 10 row without equal. The
bugeness Of the sums involved male the
building OF such = u.aehins absolutely
necessary,
One authority estimates taat the agsrs-
gate monetary cost Of the var 90 the al
lies was t152,ooO.01o.5o0
War Coats to Zee Nations
The United States shave wa aPproxi-
nately $40 000, 100000. Tie bills OF the ota-
er six active allies we're:
Great Britain ''.'s..''tN's''.'' 80 - ~
Efance S-L59 1870 100
EoHnsna ''''''''''''s''@'''''''' 80 sS cS
Serbia ,....s'...'.''-.....~.-' 800 a'V'O"V0V-O
TIE meeting OF THESE costs ueeessitersd
going deep into debt. they we're forced
TO borrow durins the var n tno Aeish-
bOrhOOc Of SIS, Coz 600 go. This indebted
ness. added 90 the pTe-Sar obligations
means a combirea debt today OK approx
mately sIl5,000ooo, COO
Debt Tar Below Wealth
These hglres scem svupendous at FIRST
glance but In comparison 10 the estimated
national wealth and a8auEl income OF
each they are really small. - conserya-
tive estimate OF the wealth and yearly
Income OF he -FOUR nations active al the
close % the var together with their debt
Wealth. Debt. Iaeomc.
&c., Co.,, IN millions ~ dcldIa,5s,
Grsat Britain .......... $1,000 5000 j.. 90
France .............-. 800 go 800
The United States debt A the present
time aggregates as. eS9. 5s9.150. against =
prswar total OF 1925, 00.090.
Americas Loans 10 allies
II is we'll to remember, however, that OF
tbis amount 1872 5750 600 representa-
credits and loans advanced 20 our. allies
and some OF the small states inactiYeiy 0p-
posed 10 Germany. or this sum 500 CO.
600 was advanced 20 Italy and $4,000, 600
10 France after the armistice had been
signed. The total advance 90 each In
dlvidual nation follows:
Great Britain, S3.Tl5. Ob0OO France 81
$4,000 600; Italy. t16090O0OO; Russia,
1925 900 600: Belgium. $1s3.52O.OOO Greece.
f15 79O 900: Cuba. f15.O00,OO0; Serbia {tz.-
s5oo0 900.
America raised a considerable part o.
the war cost through taxation. the revenue
receipts In the fiscal year 1918 amount
ing to S3694.703 900. OF this s2.S39 0sS 900
represented war excess profits and income
taxes paid in June. forms OF levy. estiEeiy
lew 20 America.
Bonds and Savings stAmP7
There we're other new measures beside
the unusual method OF taxation adopted
by the United States IN meeting her war
cost. War savings stamps we're an IN
known government financial instrument be-
fore the war, yet the public is now so
we'll acquainted with them that up 10 Nov.
l II had purchased a total OF 1925 100000,
and the sales are now running at the rate
OF about 800, 100000 6 month.
The sale OF $16.S51. $50 IN Liberty
bonds also was no small task. The ofTer-'
ings were spread out over a years time.
but IN the same period all the world was
Bidding eXorhitant rates for money. To re-
strain competition IN the capital market
the government supervised all security Of
feTings and barred those which were not
absolutely necessary. So successful was
this measure that corporate and municipal
financing fell OF pereeptibly with the re-
suit that the fourth Liberty Loan-ths
largest piece OF financing ever attempted
was oversubscribed by near Is per cent.
Reserve System Foundation
behinu the entire war programme, row
ever. there was an almost impregnsble
banking structure, for which President VIII
sons federal reserve system formed the
foundation. Without this new banking sys-l
tenn financial chaos could not have been
avoided with II the country has come out
OF In the front rank OF nations and we'll
prepared for the new trade era Whloh is toI
come.
She new holds practically one-thIrd of r
the entire gold supply or the world has a v
favorable trade balance abroad, and Is o
economically and financially in a position &
to hold her newly acquired position In the
worlds markets, -