Norwich bulletin., 1920-09-23
LETTERsTO THE EDITOR
Suggestion Regarding Obligations of Allies

Suggestion Regarding Obligations of Allies
 MT. Editor: From the declaration of
 war on Germany by the United States,
 this government practically financed the
 war expenses of the allies in this country.
 This was accomplished by taking ambas-
 sadors' notes from the allies and advanc-
 ing those countries credit for the pur- chase of war material and supplies at
 the same time issuing liberty bonds, from the proceeds of which these advances were made. The extent of the ambassa- dor's notes in round figures amounts to ten billions of dollars, and owing to the straitened financial conditions abroad, it was deuaed inadvisabie to press payment 1 for interest for period of 1 three years at which time the interest was to be funded as part of the principal ! due this government
 The United States government issued 1 in it's various liberty loans and victory notes some twenty billions of dollars, which bonds were bought by over ten | million individual subscribers in the 1 United States, who e'e urged, if they did not have the money to borrow the
 money to buy these bonds. Consequent 1 ly, when the war was over, a large num- | Der of these purchasers were forced to sell their liberty bonds at whatever mar ket price they would bring to pay off 1 their loans. The purchasers of these l liberty bonds on the decline were first the United States government for the
 sinking fund, second-sone new invest
 ors. and third-tfle banks throughout the I country, who in turn took the liberty bonds and were forced to go to the feder-
 al reserve bonk and discount their notes I with the liberty bonds as collateral To take care of the interest on this large debt, in addition to the expenses of
 the government, occasioned very heavy taxation. and now that the war is over. |, we are faced with two propositions which cannot be put off indefinitely, namely ta) what disposition is to be made of the ten billion dvances to foreign pow ernrnen against ambassadors notes and si (b) the reduction of taxes.
 I It has been suggested by Joseph W Hartman. president of the Harrinar : National bank, that if merchant sole i a bill of goods to a responsible purchase
 and took in payment a note, the merchan
 would endorse the note and borrow none, ;, 1 from the bank to extend his business Il Now he argues that the United State q government is somewhat in the position 0 e the merchant in that it has intercollegiate r. of the allies, and that an arrange l. n1ent should be made whereby this det should be placed in say fifty-year si
 Jper cent. Obligation. with sinking run
 I etc, and that the United States govern J ment should guarantee these bonds na e offer some in exchange for our outetand u ing liberty bonds to an equivaler Ts amount. Naturally, financial under J. taking of this magnitude would requir ,e congressional legislation and time to ca, :, " it out. but if in the form about out - lined or in some modified form, such y proposition could be consummated,' o would result in, frst-the reduction y our taxes, and second-an advance h. the market va'no of liberty bond Ky and thus would relieve the congestion ;. rediscount in the federal reserve system - I would like to receive comments, crit y cisns and suggestions.
 Very truly yours.
 |" JAMES B. TAYLOR
 New York, Sept 21