El Paso herald. (El Paso, Tex.) 1901-1931, 1919-11-18
ROad To Ruin" Terries England; Spends $55 OOO 900
Week More Than Income; Fears To Increase Taxation

/ 7 ONDON, Nov. ISIS the British
l. empire going bankrupt The
road to ruin" Is the phrase used By
! the Northcllffe press to describe the
present descent 10 the abyss" The
I people Of England are unable 10 see
how the country can keep solvent
while the treasury. in peace time. de-
spite all efforts at economy, is spend
Ing s55,000.00O a week more than the
total revenue from all Sources
In my last two dispatches ] showed
that England is not going Bolshevik.
and that at the same time the labor
situation is more encouraging. indus
try has revived until at present goods
are being produced, and there Is less
unemployment in this country than
ever before in the most piping times
Of peace.
Pessimists have been COMPOUNDED by
the req sonable attitude the British
workinEman assumed as soon as he
was made certain that his war time
wages are not 20 be taken away from
him. at least not before the cost OF
living has fallen. Pessimists we're
also put 20 shame when the country
instead Of falling into chaos during
rehabilitation turned its Industrial
plants into peace goods factories al
most over night, beat its swords into
plough-shares, started production on
a peace basis and absorbed all the
millions OF discharged soldiers almost
before the public realized the war was
over
Nevertheless the financial eri-
sis remains. As the breakdown
OF Britain would shake the world,
Including the United States. per-
huuu even more than the war has
aaanm lie
affects every American.
Must Pay Interest.
Since production IS the backbone OF
prosperity, and production here Is 60
ing full blast. what Is there % worry
about2 Interest has to be paid upon
the war debt, either by increased tax
alton or by some form OF disguised
confiscation Of wealth, such as the
proposed levy on capital The ma
tlonal income IS greater than It was
IN 1913. Measured in terms Of guam
tity Of commodities and services be-
ing produced. It is greater and in
terms Of the deprecated paper cur Z
rencv now current 1t is probably twice /
as great These estimates are not I
mine, but those OF treasury officials !
qualified 70 speak.
However. government eEpendi-
tures not war expenditure, but
money now a year after the ar
mistiee actually being paid out,
e. almost exactly five times as
great rs In the last year OF peace.
Where O. this gigantic sum 20
come FRONT And where Is the
mad race 90 end when every week
the government has to borrow
S55-oOOi0O0 more to keep the
wheels turninEs
wage earners are demanding that
heir standard Of life shall not be cut
Town, that their wages shah remain
e the relatively high figure TO which
hey attained during the war, To this
.emand the government, in settling
he railway strike, IN effect acceded-
But business men and land owners
re trying TO get profits at least as
-reat as those they enjoyed before
he war, economists claim that with
ne rise IN the rate Of Interest capt
al here even gets more than it used
10 get
Ways Open.
The common sense view Is that one
81 four things must happen The
country must produce, not little
more than IN 1913. but two TO thTee
lines as much. If the war interest IS
10 be paid and capital and labor each
continue to get thor present return.
Z this IS not possible, either capital