South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-06-02
ENORMOUS WAR
DEBT PROBLEM
House and Senate TO COoper-
ate in Finding Means
for Payment.
BY LOIS LUDLow.

WASHINGTON. June How
VIII the enormous war debt Of the
United States be paid
This staggering problem will soon
De well advanced toward solution
The ways and means committee Of
the house and the finance committee
OF the senate viii cooperate in devils
lng plan for taking care Of the
war debt created since April 5. 1917.
sinking fund out OF which TIVE debt
viii be reduced from year 10 wear
viii be created. At present there are
differences Of opinion on the ques-
ton as 10 whether in Iegislating on
the subject congress should observe
the policy OF distributing the debt
over long period Of time or wheth-
or the plan should be to pay liz off
within the next ten or dfteen years.
When the subject comes before the
two committees that Will deal with II
there VIII be much argument along
the line that the world war ought
10 be Of beneft 20 many generations
Yet 10 come and that this being the
case. the financial burden incurred
by the United states should not be
carried entirely by the present gen
Grafton but should be distributed
amonS several generations.
ON the other hand, there are mem
hers OF the two committees that will
deal with the subject who are in IA
Nor OF getting rid OF the entire debt
as quickly as possible. The argu-
ment OF senator's and representative
who hold 10 this view is that
country 80 rich in material goods as
the United states should not pass a
war debt along TO a succeeding gen
GRAFTON: that the country is amply
able 20 stand the TAXATION that will
be necessary to wipe out the debt
wlthfn q reasonable period OF time.
Some Of the members of the finance
committee. among them Sen. Smoot
Of Utah. advocate legislation max
ing provision for the accumulation
OF a sinking fund large enough 10
enable the payment OF $1,000, OOO.-
600 a year on the debt
l. Huge sum.
In planning for the futre the
two congressional committees that
deal with finance will proceed on the
down 10 an after-the- war policy il
viii take not less than $4,000. OOO.-
GEO annually to keep the govern
ment machine going. Before the
war came on the government was
being run on a little more than ST.
GOO. 000. 600 a year and this was re-
garded as an extravagant sum. II
viii be several years probably, GER
tainly two years in any event. say
the men who are handling the gov
eminent finances, before any sub
statntial after-the-war basis can be
reached.
IL is very well understood that the
prOceedes of the victory loan will
not be sufficient TO meet the com
ing years demands on the treasury.
In all probability II will be necessary
10 market not less than $4,000, O0O,-
GOO OF these certificates during the
fiscal year beginning July 1.
No one connected with the gov
eminent is able 20 say al this time
with any degree Of dehniteness " hat
the war debt viii amount TO. This
is due TO the situation that exists
with respect 10 the foreign loans
made by this government some
S1O.O0O.O0O 600 has gone TO help the
allies. How much OF this Will ac-
tually come back cannot be fore
seen at thsi time Apparently the
money loaned TO Russia has gone
for good, thought time may evolve
government in that country that viii
acknowledge the debt and pay it.
The loans 10 Great Britain Will Just
about be Offset by the bill which
Great Britain has against the United
States. growing out of the transpor-
tation OF troops across the Atlantic.
The United States also owes France
money for munitions of war and
Frances claim VIII come out OF the
money which she borrowed from
this country. In the case of Italy the
expectation is that payment of the
loan viii be delayed
Has Big Interest.
Until the executive department
can give congress more information
than 10 is now able 90 supply the
committees dealing with finance will
not be able 10 dtermine what the
governments interest charge Will be
As nearly as the experts on these
committees can get at the facts now
something like S9O0.000.O0O will
have 10 be provided annually for in
terest on the war debt
The problem before the WAYS and
means and the finance committees
Will be 90 make the burden OF taxa
ton as light as possible and still
meet the interest charge on the war
debt and provide sinking fund out
OF which the principal OF the debt
can be reduced from year TO year II
Nil not be the policy Of the republic
an leaders In either the senate OF
the house a lead the country TO be
liete that the burden OF taxation can
be nghtencd rapidly. The country
has great financial obligations 10
meet as the result of the war. 10 rs
pointed out. and they must be
through direct taxation and through
tarin taxes.