The Mena weekly star., 1919-05-29
QUARTER CENTURY
 | 10 PAY WAR COST
National Law Makers Have Plan to Levy Three Billions Taxes Yearly, Keep Down Expenses and Pay
 the Bill in Next 9 Years.

Washington, May 27.-A quarter century of war taxes.
 To pay for the war within genera tion at the rate of billion dollars of the principal of the debt and nearly n billion of interest thereon each year, Constitutes the basis of the fiscal pro- gram being framed by the Republican Leadership of the new Congress.
 The cost of the war to date is about 80 billion including 10 billion of loans z to the Allies. The cost will be in- creased several billion more by de- mobilization and other expenses. AL Together it is estimated that the American peoples war bill will ap- proximate 25 billion dollars exclusive pf the loans to the Allies which will hot be paid for many years, and pos sibly a portion never.
 Altho the interest cost will de- crease as the debt is liquidated, it Twill be necessary to impose taxes of hot less than billion dollars a year Eff the cost of the war is to be met zwithin a generation. Taxes this year will be 4 billion.
 Cut Expenses to Billion. q The Republicans aim to reduce the ordinary expenses of the government Ato approximately the 1 billion a year pf ante-bellum days, thus allowing the application of nearly billion hollars a year on the war debt.
 Before July 1, 1920, the treasury, st is predicted, will find it necessary to obtain loans of billion dollars From the banks on certificates, it be- 3ng understood that there are to be no more war loans offered for popu- lar subscription.
 # After a conference of the Republic an leaders today, mainly devoted to discussion of the provision of a war 6ebt sinking fund, Senator Shoot said:
 "The proceeds of the last Victory loan will be used to take treasury certificates. It will be necessary to 'issue still more of these and they will De carried by the financial institu- lions, obviating, I hope, the necessity Do sell more and more bonds at pub lic sale.
 "We now face the necessity of rais- Eng about 900 million dollars year to meet the interest alone on our pub 1ic debt. It is true that our loans abroad, amounting to 10 billion dol lars, will bring in some contribution Toward meeting this amount, but it is uncertain how much. It will be a good many years before we know how nueh of our war loans to our Allies ean be collected. Some of it never will be; some will be very slow and Re must take measures that will in zzsure independent provision to take tare of everything.
 Next Year. Billion in Taxes.
 "In the next fiscal year we will 4aise 1 billion dollars by taxation and hope that a sinking fund plan Ban be put into effect immediately. 1 haye been studying the whole subject *ith this in view and while I have not Hrafted the measure and can not now give an outline of it, l will introduce 1Fuch bill in the near future.
 Not within the next quarter of a century will our national taxation burden fall below 3 billion a year; Believe, however, as we have this to sneet, we should meet it now and be- Kin to discharge the debt. We can and should assume the burden of can xelling a billion of it every year" 8 One thing is emphasized by all con-
 ressional leaders who have been giv- ng any thought to financial matters. it is that no legislative encourage lent is likely to be given from this fme forward to plans which eontem- late advancing more money to for
 gn governments. They think this
 untry has done it's full share and #nnot be expected to continue lend-
 g money abroad, except as Ameri- Pn bankers. on banking terms, may ake the advances.
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