Norwich bulletin. [volume] (Norwich, Conn.) 1895-2011, 1919-01-04
COMMON SENSE

The great outstanding fact which
confronts not only the United States
but the entire world is that the war
adventure" has already cost $175,000,-
600, 900, and that the full account will
probably approach 100000, 600, 900
! The wealth and resources of the
world are mortgaged to that amount.
Fortunately neither the human ener-
gy nor the material wealth of the
world are exhausted. The duration OF
that huge debt will depend on the
worlds future efforts TO make full use
of both human and material equip
ment. The peace conference may en-
deavor to apportion the burden by
compelling Germany to shoulder in
IDENTITIES of $125.000, 100000, or even
more. There is, however, limit TO
the amount she can bear. In any case,
the operation of economic laws Will
ultimately bring about a redistribution
of the load. 1t was world war, and
all the world must pay. No one can
view that staggering cost and hope to
see readjustment based upon pre-
| war standards. The prosecution of
the war demanded far reaching
changes in every direction. The re-
turn to peace means equally lar
| reaching but widely differing re-
| quirements. 1t also means new OPP
portunities, and in that is our great
| hope for the future.
| In considering the problems con-
| fronting US it should be remembered
that all the warning powers face sim
| liar problems of reorganization and
| that ours are far less acute than these
| of the European nations. Ever since
becoming actively engaged ie, the war
| we have been able to keep, sfor com
! mercial distribution, an immensely
greater amount of our output than the
| other belligerent nations. Japan has,
! of course, improvtd a similar oppor-
tunity and increased her export trade
1870 per cent. from 1915 to 1917, add
| ing SAP, 900 900 to her sales of partly
or wholly manufactured goods. Aside
| from Japan, the United States is the
only great bcllig erent to emerge from
the conflict with her equipment and
| man-poWer comparatively unimpair-
ed and ready to turn out manufac-
tUred goods uninterruptedly. The po-
| sitiGn which we now occupy holds
definite obligation. The United States
| will inevitably by compelled to as
sumo leading roll in reestablishin2
credit throughout the world. 1t will
also be called upon to furnish vast
quantities of material to supply the
shortage and Wastage of the past four
years.
While the financial situation viii
claim close attention for seVera
years, it is now most insistent. The
recent order of the Federal Reserve
Board warning bankers Throughout
the country of the possible danger il
too great expansion of business, the
Importance of conserving loans, ant
of regulating the flow of credit, is
wise and sound. Three months agC
we faced an estimated war eEpendi'
ture of s27,718,O00,0 900 for the yea
ending June 80, 1919 Estimated re,
ceipts from revenues and loans wert
approximately $1,000, 100000 short o
that amount and the end of the wal
not in sight. Today we are in d po
} sition to calculate with fairly rea
sonable degree of certainty as to tn
) future demands of government fnanc
| ing. The coming of peace has great
~ modified our previous estimates
More than ,250,000,000 was immedi
ately cut from the war department
: estimates, while a reduction Of prac
F. ticalIy $4,000, goo has since bee
made in the revenue bill.
=, The reduction Of government esti
, mates and the consequent cancella
: ton of contracts has, SO far, produc
3 ed no result Warranting alarm. as tn
Y cuts were, in great part, confined t
i contracts upon which actual opera
= tions had not been started. The cut
= already made in estimates and rev