El Paso herald. (El Paso, Tex.) 1901-1931, 1919-06-11
WE. MAY As WELL START PLANNING
TO PAY OFF THAT BIC WAR DEBT

DAYIC off our war debt is one of the big matters fac
ing the American people and it is to which atten-
tion soon must be directed IN fact senator Reed Smoot
Of Utah has already held up hand, calling the public
to stop and listen His program for the liquidation
O. the war debt is important
He assumes that when all war expenses have become
definitely known the war debt viii be found approx
mate ssoOoooooooO He has figured out that sinking
fund ought to be established to pay it off He says that
~ percent annual sinking fund would discharge the debt
IN "a years little less; IL percent sinking funds IN
years. and percent fund.- IN about A years
The LARGEST Of the three percentages would call for pay
uent Of $3.50 100000 year and the smallest TO S3OOOO0
Coo These are figures to make the taxpayer fdget,
calling that they equivalent TO large part Of the
total annual expenditure Of the government before the war
But that can't be helped The Indebtedness has been con-
t1acted must be paid. It is parand the most IL
consequential parof the cost OF fgnlng Ior great pm
ciples The greatest cost was in human life. =
To the reduction Of the money debt congress and the
American people VIII apply themselves "ltnouI oOuot-
That has been our policy IN the past By 1896 the Amen
can colonies had contracted debt Of S37OOOoO on &C
count of the evolutionary war In 1872 the Oebt had been
reduced to s42O0OO0 The Of 1872 brought the debt
I'D to s123500o0O It had been wiped cut by 1884, al
though it was very large for that time considering the
smaness Of the American population and the AmlIea II
All the beginning of the civil war the total public debt,
contracted in ways for variety Of purposes was
I'd TO S9O3O0oOO The war increased II 70
At the moment as citizens Of that day VIII recall the sum
seemed staggering But the establishment OF a. one per
oet sinking fund the payment Of the debt in sums even
above that mandatory rao and the maintenance IN the
decade after the civil Of yearly tax revenue equ
TO the average revenue of the period brought the debt
down to s1O0ooOoOo only % years after the close Of the
conflict Four years afterward p years AFTER Lees SUI
render It had been reduced TO below s6oo,oo0ooO-
In 1899 American four percent interest bearing BONDS
were selling at 12e because Of the prospect Of their early
purchase by the government
As for the Spanish-American debt, it was prac-
tiesfIv all paid off within five years.
II net the American policy to let debts run InoeInltel
with heavy interest charges and no attempt MADE al 1q
aon As the above shows steady payment OF war DEBTS
M nstaents has been the invariabe practice To that
fact may be ascribed the immense and graLIyng conn
a investors at home and abroad have in United States
government securities The credit Of the United States IS
first class and always VIII BE-
The war burden now upon may not be so heaVy d
burden rs senator Shoots calculations indicate II the
Total war de5t amounts to about s3OOooO00ooo almost
onethd of It VIII consist Of advances TO the aes 4nos
5s--es secured bv equivalent securities, amount to
about Sc AOOOO0O0O and VIII probably be brought up 10
s1OooooooO0o Some Of these European securities VII be
redeemed by the governments that issued tnes N u