Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1919-02-13
WAR COSTS IN PEACE TIME

WAR COSTS IN PEACE TIME
An examination of the federal treasury reports COW
ering the period since the American declaration of war
bursements for the month of January, 1919 reach a
higher total than in any other month (but one) during
the war.
The immediate and important drop in expenditures
which had been expected by a majority of those people
who are not intimately acquainted with the business of
managing a nations affairs, has failed to appear, and
it is certainly Of some peculiar interest to note that the
most expensive months of the war period have been those
Immediately following the signing of the final armistice.
To bring out the point a bit clearer: The January govern
ment expenses this year were nearly twice as great as
the January, 1918, expenditures ($1. oso, $50, ooo) and only
about 500, 0o0,0 900 less than in December, 1918: this
latter reduction is accounted for by the decrease in
moneys loaned to the Allies.
And it is even possible to go a step further in prov
ing that the end Of the war is more costly than war it.
SELF For at no time during the period of bellgerency
have the monthly expenditures scared to such heights as
during November, December, and January-the three
months elapsed since fighting stopped. The respective
amounts were, as follows: November, $1,s35, 24s. 900;
December, $4,000. s75,ooo; January, 1892, 300, 900. The
one actual war month that approaches these records was
that of August, 1918, with its accumulated government
expense of 81, so5,513,o 900.
The man in the street." as our English friends say.
naturally stop a moment to reflect on what seems to be
a peculiar situation, and he thinks some explanation of
the phenomenon may be expected.
Military and industrial rehabilitation is, as a matter
Of fact, more costly than mobilization, and one reason
is that much of the work completed by manufacturers
for war purposes has to be paid for; another is that the
interest on public debt is constantly increasing; and a
third. that partially completed work must be adjusted,
The American war expenses were in the beginning
abnormany low, and in this connection government ex-
perts have pointed out that European governments for
years were able to prepare financially and militarily
tor the war while in this country the machinery of mobil-
ization was bound to move so slowly at first that money
was expended comparatively sparingly.-A AS time went on,
the expenses increased from month to month reaching
their natural climax during the, very month. when the
Allied armies brought about the climax on the battle
field.
Then came the end of the war and the collapse of
the German resistance. In Americas case, this meant
immediate beginning Of readjustment with consequent
huge outlay Of money. .,-
This will not last, however. Such an item, for in
stance, as pay to soldiers and sailors will be very mate
rally decreased; the amounts Of money to be loaned to
the war associates Of the United States will be mini
mized; and much smaller sums than before will be ex-
pended for ammunition, arms and the constructions of
war vessels.
All these factors will in due time contribute to a
items to offset the reductions: There will, for instance.
remain a large item covering the pay to disbanded SOL
diers, the war insurance and war anotments, and the
present deficit in the government management of the
: railroads will amount to the not inconsiderable sum Of
approximately $1,000 900. &
All these and other expenditures must be met as they
arise, and in multiplication of this, the treasury is now
preparing its fifth national loan campaign. Out of the
seven billion dollars subscribed for the fourth Liberty
loan nearly five billions have heep ucad 70 n,,, oe out
standing certificates. and on the strength Of the coming
loan, the government has already borrowed more than
three billions by sales of certificates-from which fact it
will be gathered that whether the next loan is to involve
five or six billions, there will be a comparatively. small
amount left for current readjustment expenses, Addi-
tional revenue may be provided by the six bilion-dollar
revenue bill now before congress.
But no matter how things are considered, it is clear
that even though all government expenses will gradu-
ally decrease, tho country is facing a period 4 probably
a twelvemonth which promises to be. on the whole, more
expensive than was the period Of the war.