The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1920-05-07
ZION NEEDS
NOW The UNITY
THAT WON WAR
Assistant Secretary VI Treasury
Discusses Remedy for Econ.
omic Crisis.
BY X. G. LEFFINGWELL.

Assistant Secretary Of the Treasury
3 For about year after our decIa-
4 ration Of wsy. our loans to the al
4 lies were our principal effective
n contribution TO winning the war
II they were fighting.
Il The loans we made to Russia
4 held the eastern front for six
Il months.
"a II was the loan we made to Italy
"a in the fall OF 1917. when the great
4 offensive broke on Italy, that gave
III the Italian people courage and en-
Gbled Italy to replace lost NUM-
ttions and supplies.
Ii In the spring OF 1918 1t was our
silver that held India for the allies.
sa In the summer OF 1918. American
credlts sustained the French when
Psris Itself was under gunhre.
~ As Gu" military effort grew. the
T burden which the treasury had 10
Bear cane inc.cnsingly 10 represent
toe expenditures OF our own gov
cfnn1ert and Increasingly thn-c c.
tho allies.
,fAa ie,h, wa. ti.bu.;:.s.5cc..,s.S..;.ts O.
II ssi, 45S. 100000 iaclado expenditures
Tor loans TO tho allies and obligations
III tassen from, tho allies and other gov
cTnnien.s upon ITO sale Of goods on
/ credit In me aggregate amount OF.
say. $4,000, 100000. and salvage
eble investments. To what extent
and with what degree Of expedition
{ thess Investments may be iiduidat-
I'd depends upon questions OF pub
Tic policy rs we'll as practical
finanee.
IN The e:-nss= prodth tax diseour-
/ ages initiative and enterprise, re-
wards ever-eapitaiization and dis
ceurasea conservatism in capitali-
Ratien, confirms great corporations
in their menepslies, encourages ex-
taaYsgaEees and wasiefui manage
taaat, and Etida to the coat of living.
Excessive surfaces do not pro-
Guea revenue, but drive capital
into tho billions OF exempt securi-
tiss,
Il u w.thiT the power OF con-
greaE. by reducing surta5es and i'll
efehs,rs normal taxes. 10 lift Lib
1 erty honda to practically any mar
4 lket level i, chooses,
4 tn the last analysis, taxes can
\ pniy be paid out of income, and
Il the best tax Is q properly gradu-
II Med income tax. When t. tax is
n Imposed upon something else, or
II measures in some other way, the
taxpayer who has no current In
II come available must shift the bur
Il dan Ia someone else. II possible,
he will shift 1t TO the ultimate con-
gunner,
Indirect taxation mabes 1t pos
Usibie to conceal from the great
mass Of voters upon whom the bur
tFaens fall thai they are being mulrt-
Il ed In order TO confer special bene-
II DIS upon part OF The community
Il The cost of living here has in
creased less than in any OF The
i belligeFeal countries Including
I japan, which assumed no appre-
ciahle part OF the financial burden
of the war;, or In the neutral coun
hIgiSS, ms WIS IN iiu bliuit L1cdc
iirs due 10 treasury methods Of
| FINANCING the war
Since Armistice day the world
has receded further from sound
/ s.positien. We have failed to restore
spsaee and peace conditions II,
Europe, In America unsound econ
ionic ideas have In many instances
spYeva.ied and the effort is being
made, first here then there, TO i'm
pfovs the condition of some of the
fpeopie al the expense of ali Of the
peopie,
# Our of'r prices are being inflated
END car OWE banding and currency
4 position expanded by the feversh
Speculation n European currencie..
credits and securities, including
| those Of countries with which We
! are still technically al war.
While congress deiiberated. tnc
government held control OF the
srailway systems OF the country for
4 year and G quarter after lighting
stopped. and furnished Transports
lion al less than cost. Then con-
u 8AGSC OiuNiSu tuS iutii oNdS SiL-i
ed to their owners with B.w ex-
renditure CT s1,Qo6,0e0,00o by the
4 government for their account and
Il the deferment for years OK the ST.
\ oc0. 100000 the railroads owe the
Il government.
Il II the railroads had been allow ed
Il 70 charge reasonable rates. the
q government would have lost moth
4 ing In the operation.
lnstead OF telling the people
\ FRANKLY and boldly that prices are
high because they are wasting, We
4 M prices and prosecute proflteers
Il III order that the people may buy
Il more and pay less.
4 Instead OF telling the people tina.
1 Liberty bonds have deprecated be-
Il cause they are treating their LIB
Il erty bonds as spending money. we
Il tlamor that the rate of interest up
u on the bonds IL too low aud urge
1 i bonus to bondholders disguised as
refunding operation.
We Grunlble and Spend!
Ne enjoy high living while we
Rrumbie at the high cost of living
4 of silk stockings and shirts for
the poor. of automobiles for men of
mail means, of palaces for the
II pyoiteer and plu.ocrat.
Instead of telling the young men
who were drafted to fight the war,
md who came back better and
ltronger and more fit to fight their
own battles than they ever were be-
h Tore, TO go to work and look out for
themselves as any self-respecting
man should. We listen complacen.-
L M to their organized demands for a
b0nus. euphemistically called lad
3usted compensation"
We must get together, stop bick-
Ering and face the critical situation