The review. [volume] (High Point, N.C.) 1908-19??, 1920-12-02
LIZ in IT WE MUST.

ahout q DiIlion dollars q year Tor a.
evDens4s. The increase in the Ne
t:0raI debt has created the necesSl'
~ interest payments to the amour
Of abOut a billion a year. Therefore
IS the government were now on
rse-var basis, that is to say, II tn
war were fully "liQuldated, our eA
pnditures would nevertheless o.
" about twice what they were III 1918
or two billion dollars.
Rnt as a matter OF fact, estimates
for next year, the third after h0stul
ties ceased, are about five billions. IL
otner words. altogether outside o.
ne necessary increase in expense
due to raising % billions with which
10 carry on the war, the government
is spending three times what 1t uSed
10 spend on all objects whatsoever.
Our war debt is responsible for only
0ne-fourth Of the total increase IL
CIR expenditures.
The explanation is not far to seek.
vet it has net been greatly empha-
stzld. The United States army and
the United States navy cost nearly
twice as much to maintain as the
whole gov2. rme1t, army and navy
Included, cost seven years ago. We
have erected a military establishment
tI2t in the matter Of expense at
Last. is one Of the most gigantic that
the world ever saw. For the better
ra1t OF a generation it has been
popular belief among Englishmen
tazt the were being crushed to death
o1sNy
to maintain their titanic navy; taat
-2vT was enormously increased dur
ing tie war; yet by 1928, we are IN
formed by the navy department, this
naval establishment OF the United
States viii be in possession Of ton
mage very much greater than even the
greatly expanded navy Of England.
Our army likewise mas been raised
fTcm a paper strength of G4,0U0 to
baDer strength Of 1000. Take into
consideration the increase in the
pr-ca CT every thing that the govern
n2e1t has to buy over prices Of the
s. me articles in 1913, and there is no
d difficulty in seeing where the five bill
lions have gone. The United States,
in ether words, is getting touch Of
the consequences OF militarlS-n. 1t
is only a touch for France, Germany
and Russia before 1914 each carried
the burden Of an army Of 1000, 900
men or more; while England, with
two-ffth3 Of our population, carried
the burden Of a navy as big as our
present one.
Still, even this superficial cOnsid
er-tion VIII reveal something Of the
magnitude Of the task Congress as
sumas when it undertakes to reduce
taxes A terrific howl is going up
J5Ort the excess profits tax, and both
Tll dies; but the money must come
fro N some place, and the only possible
source now in sight is heavier income
taxes. The excess profits tax is esti-
mated to be WOE tn a billion. It can
not be replaced by tariff, for in its
Tarniest days the tariff raised only
$4,000 100000, and Europe is export
ing vastly less to this country than it
did then. If the tariff raises $780,
100000 it VIII be doing We'll; and
that would leave $85O,0O0,000 to be
raised elsewhere.
The excess profits tax, however, is
DIX NY CSild1u 10 Dc dDdIluOu6u, 1OI 4,
even if it were not the burden on
business Whioh~it is generally admit
ted to be, the slackening Of business
conditions has always vastly reduced
it's value. A deficit next year is prac-
ticalIy a certainty. By the same tok-
en-, it is practically a certainty that
the income tax will be made to supply
that deficit.
The only alternative course would
be a material reduction in govern
mental expenditures, but there is only
one place where the government
could cut it's expenditures enough to
make a sensible difference to the av-
erege taxpayer. That place is in the
item or armament. But reduction of
armament is not practicable for one
nation to attempt alone. Before it
can be considered seriously, every for
miGable power in the world must be
brought into the agreement, so that al
may reduce il the same proportion
This course however, is closed to the
United States at present by the 'coun
try's refusal to join with other nations
in the endeavor to preserve world
pe3ce by sGIne other method than the
fatally expensive one Of arming tt
the teeth. We have refused to jOir
the league of nations; therefore we
~ Tlu-t continue to bear the entire bur
den of our own protection, and Ou1
present military and naval establish
ne1ts are none too great to assure u
q reasonable degree of safety in {
world in which we have refused t.
have any friends.
We have made our bed, and