Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-03-14
Paying the War Debt

IT is never a comfortable thing for an in
j dividual a corporation or nation to be
weighed down with debt. The normal in
clination on the part of each is to discharge
its obligations as soon as possible, both as
a matter of credit and as matter Of sound
business. But there some obligations
which need not be regarded as a burden;
which need not be looked upon as impairng
the credit OF the debtor or as matters to
which that debtor should turn at once. The
war debt OF the United States is assuredy
in that class. 1t far exceeds S20,0OO,OO0,-
600, even when the debts Of the allies to this
government are deducted and the interest
charge against it will be heavy. But there
need be no frantic effort on the part Of the
American people to liquidate that debt within
the next two or even three decades
There is a more or less definite proposal
under consideration, reports agree, for the
creation of sinking fund, with the view Of
paying off the war debt within, the next
twenty-five years. This proposal does not
seem to come direct from the administration,
but there is reason for believing that num-
Der of administration officials are calculating
upon such a fund, and they may persuade or
seek to persuade the President that he should
become the champion of the idea.
This raises again the question which was
debated vigorously during the first year Of
the war. When it became necessary to
finance the vast military operations which this
government had undertaken and it was
found that the cost Of the war would approach
S20,000,0 100000 year, means had to be
found for raising the immense sums of
money demanded. The President appeared
before Congress at the first session with
the recommendation that a tax bill be
enacted which would exact enough money to
pay large share OF this cost by current levics.
AS the war bill grew in proportions, fur
Their taxation was imposed until sums were
being raised from the daily earnings OF the
American people, at the time Of the armisticc.
covering fully one-third of the expense OF
the war. This taxation was not rebelled
against, however hard it bore upon the ma
tons business. 1t was agreed generally that
the men and women of America should con-
tribute literally toward the cost OF the
war enterprise as might be possible, without
interfering with their efficiency in produc-
ton, but it was assumed by them that once
the war was over they would be relieved OF
the heavier taxation load and given 4 full
opportunity to reconstruct and expand tho
businesses by which they live and upon which
the nation thrivcs.
If it should be determined now, however.
that tho whole of the countrys bonded debt
must be discharged within tho next twenty
or twenty-five years. it will mean that tho
present generation OF Americans will have to
pay the total cost Of tho war, and while it
may be within the range OF possibility that
such a contamination can be achieved with
out severe hardship, it is scarcely reasonable
that posterity should be relieved Of the whole
Of this obligation. No other American war,
save perhaps the first, ever was fought more
in behalf OF future generations than tho war
which has just closed, and it would be ask
ing nothing moro Of our children and our
childrens children to pay share OF the wars
expense than is right. 1t is far too soon for
the administration to commit itself to
policy Of liquidation.