The Washington herald., 1919-04-10
DURATION
OF DEBT PAYING
Enormous War Bills Must
Be Met for Many Years.
Says Holland.


by some OF the men of finance when
the forecast which was made by
Representative Good, who Is soon TO
De chairman of the House Appro-
pristions Committee. was made
: public.
. The other day one Of the best
authorities of the United States
Nentured the prediction that. pro-
Nided necessary financial aid be
furnished the international yearly
trade balance in favor of the Unit
cd states for some years to come
viii be not less than one billion
dollars. Now Representative Good
who has made an exhaustive study
o OF financial conditions so far as
they affect the government. asserts
thst the interest upon the national
debt will smounr to more than 81 .ooo.-
I-ooo.eo a year.
Estimates Disagree.
IL II were possible to offset the
interns tional trade balance in our
favor by means OF the interest upon
our national debt then one would
balance the other. This, however. IL
not only impossible but even il it
were practicable II would be OF little
avail because of other factors.
II may be that. indirectly at least.
this interest may be Offset through
the payment to the United States of
the five hundred million dollars in in
terest upon the obligations now held
IN the Treasury Department, which
represent the debts of the nations OF
tne world to Us on account OF the
advances OF money and credit. Mr..
Good, I'm fact, calls attention to the
relation which this interest Of a half
Dillon dollars bears to the general
problem OF our financial condition.
lie also refers TO the national ex-
pendttures which will be maintained
for several years. and it is observed
mat his estimate does not agree with
the one attributed to the Secretary OF
the Treasury. Mr.. Glass. For the Sec
retary was recently quoted as saying
that the present rate of expenditure
of two billions month will be rap
idly diminished. so that within a few
months the expenditure will not ex-
coed two billions a year. Mr.. Good
Is certain that there will be a grand
total OF nearly four billions necessary
Tor the various government activities.
Our War Debt and EnsInnd's.
At the close of the present fiscal
year the war debt of the United
states amount in the opinion of Mfr.
Good to $4,000. 600 900. II this es-
innate be correct then we have pill
cd up war debt more rapidly than
England has done. England was a
helligereut nation for a little over
four years. Her leading financial au-
thorities estimate her war debt acx
cumulated in that time at about
sf6.OOo. 900. 900. Recently a careful
ID ha
come which England has received
for the past forty years. or at least
IN the forty years which ended when
the war began. at little under
s45.OOO.OO0. Therefore il was said
that En-land's total income for
forty years was substantialIy wiped
out by her expenses in four years OF
war
The United States had no invest
fnents OF any considerable amount
in other lands than our own when
we entered the war. All our income
was obtained from domestic sources.
But in the two years which have
elapsed since we entered the war we
have piled up a war debt OF s24,-
00o.O0O.00o, not quite ene-half of the
war debt which England has ac-
cumulated in little over four years.
The New Era.
Not the least interesting Of the
features contained in the forecast
which Representative Good has
made is his assertion that never
again will the United States return
to the basis of pre-war expenditures
and appropriations. This statement
must mean that Mr.. Good looks to
prolonged expenditure by the
United States OF enormous sums of
money which will entail very large
appropriations. 1t is less than
twenty-five years since Thomas P.
Reed when Speaker of the lower
house of Congress replied to some
one who was complaining of the
very large appropriations Congress
was making by saying that it should
he borne in mind that this is a bill
lion dollar country.
Now IL is, according to Mr.. Good
ten billion dollar country and fs
likely to continue to be represented
by so great a figure as that for
many years
High Taxes for Many Years.
BY the end OF the fiscal year which
begins on July 1 next the total appro-
prtations made by Congress since war
began for government expenditures
will have reached 81, 600. 100000. Some
have said that when peace is estab-
lished and normal business conditions
are restored IL will be possible for
Congress to enact new revenue laws
which will impose much smaller taxa
tion than the one which now stands
upon the statutes book But appar-
entity Mr.. Good is OF the opinion thai
the day when taxes can be reduced Is
distant, although the revenues of the
government may be from year to year
considerably increased by methods
which are not those of direct taxa
tion.
Nevertheless. these revenues will not
De sufficient nor will any taxation
which the people can bear without
seriously affecting business he i'm
posed. Therefore we must look tn a
succession OF offerings Of bonds or
notes whereby the government can OBJ
tain the money which represents the
difference between the amount re-
ceived from taxes and the amount
which will be required for govern
mental operations.
Other Loans Probable.
II this view is correct than instead
Of the approaching Victory Loan be-
ing the last, many others will sue
coed il. Mr. Goods brief forecast
OF the financial responsibilities which
are upon the government brings forci-
bly, to mind the magnitude Of all the
financing which must be entered upon
as soon as peace is declared. Al
~aadv the hanks aud the nuhIf, . -