Payette enterprise. (Payette, Canyon Co., Idaho) 1909-1935, 1920-05-27
GOVERNMENT saw
INGS ORGANIZATION

recently by r. c. Leffingwell, Assist
ant Secretary of the Treasury, in a.
address before the Academy of Pc
litical Science at New York. Libert
Bonds and Victory Notes, he said
were never meant to be used as spen
ing money and their misuse in tina
way is the primary reason for tn
fall in price of those securities.
"Since Armistice Day." he con
tinued, "the world has not only fail
ed to make progress toward the res
toration of healthy economic lif
but in fact has receded further from
sound position. We have failed t.
restore peace and peace condition
in Europe and in America, unsount
economic ideas have in many instan
ces prevailed, and the effort is being
made first here and then there tt
improve the condition of some Of
the people at the expense of all OF
the people.
cat this most critical moment in
the history of Europe, when our
own financial and economic stake in
Europe's affairs is so great that dis
aster there could only mean disaster
here, many of our own people have
turned gamblers and MASTERS. For
plain living and high thinking we
have substituted wasting and bicker-
ing. We enjoy high living while we
of silk stockings and shirts for the
poor, of automobiles for men of
small means, of palaces for the profit
teer and the plutocrat."
Regarding the depreciation in the
market price of Liberty Bonds and
Victory Notes, Mr.. Leffingwell said:
''In the history of finance no device
was ever evolved so effective for
procuring saving as the Liberty Loan
campaigns. A year ago it was freely
predicted by financial authorities
that Victory Notes would shortly go
to a premium and that Liberty Bonds
would be selling at or near par
within a year or two.
Every one knows why these san.
guine expectations have not been
realized. With the armistice, and
still more after the Victory Loan,
our people underwent great reac-
ton. Those who bought Liberty
Bonds as a matter of patriotism but
not as investors, began to treat
their bonds as so much spending
money. Those who had obeyed the
injunction to borrow and buy Lib
erty Bonds ignored the complement
tary injunction to save and pay for
them A $50 bond in the hands of
patriot turned spendthrift was to
him $50 bill to be spent Saturday
night or to her new hat, and if the
$50 turned out to be $45 bill, small
matter. This was the first and most
immediate cause of the depreciation
of Liberty Bonds.
Mr.. Leffingwell declared that in
flation since the armistice is attrabut~
able to world initiation and the inter
naturalization of prices; heavy ex~
penditures by our government, and
reaction and waste among the peo-
pie.
Our own prices are being inflat-
ed" he continued, land our own
banking and currency position ex-
banded by feverish speculation in
European currencies, credits, and Sc
curities. The Government of the
United States has been slow to real
ize upon its salvageable war assets
and to cut down expenditures.
Instead of telling the people |
frankly and boldly that prices are
high because they are wasting, we
fix prices and prosecute profiteers !
in order that the people may buy
more and pay less. Instead of telling
the people that Liberty Bonds have
deprecated because they are treat
ing their bonds as spending money,
we clamor that the rate of interest
upon the bonds is too low and urge
a bonus to bondholders disguised as
a refunding operation.
1--WE must get together, stop bick-
ering, and face the critical situation
which confronts the world as we
should foreign war. We must cut
our government expenditures to the
quick, abjure bonuses and realize
on all salable war assets,
applying the proceeds to the war
debt. We must have a national bud
get with teeth in 1t.
"And above all WE MUST WORK
AND SAVE. We must produce more,
but more important still, WE MUST
CONSUME LESS"
1t might be added that it is not
enough to save unless those savings
ire safely and profitably invested
nd it is for this reason that the
treasury Department has adopted