Albuquerque morning journal., 1921-07-13

tion of the normal ways Of peace
while maintaining the excessive
taxes of war. 1t is quite as un-
t1inkable to reduce our tax Dur-
|dens while committing our treas
ury to an additional obligation
which ranges from three to five
billions of dollars. The precise
figures no one can give. IL 1t is
conceivably true that only two
hundred millions year will be
drawn annually from the treasury
in the few years Immediately be-
fore us, the bestowal is too incon-
consequential to be of real value
to the nations defenders: and, II
1.-THE exercise of the option should
call for cash running into billions,
the depression in finance and in
dustry would be so marked that
vastly more harm than good would
attend.
Must Meet Obligations.
Our government must undertake
no obligation which it does not
intend to meet. No government
fiat will pay our bills The ex-
changes of the world testify today
to that erroneous theory. We may
rely on the sacrifices of patriotism
in war, but today we face markets
and the effects Of supply and de-
mand and the ineXorable laws OF
credits in time Of peace.
At the very moment we are
obliged to pay 5& per cent interest
for government short time loans 10
care for our floating Indebtedness,
rate on government borrowing,
in spite of tax exemption, which
ought to prevail in private trans
actions for the normal interest
charges in financing our industry
and commerce. Definite obligations
amounting to seven and a half
billions in war saving certificates,
Victory bonds and certificates COW
ering floating indebtedness are to
mature in the two years immedi-
ately following, and the over-bur-
dening of the treasury now means
positive disaster in the years i'm
mediately before us. Merest pru-
dence calls out in warning.
Our Greatest Necessity.
Our greatest necessity is re-
turn to the normal ways of peace
activities. A modest offering to
the millions of service men is n
poor palliative to more millions
who may be out of employment.
Stabilized finance and well estab-
lished confidence are both essential
to restored industry and COM
merce.
The slump which is now upon us
Is an invisible part of wars after
math. 1t has followed in the
wake of war since the world be-
gan. There was the unavoid-
able readjustment, the inevitable
charge, off, the unfailing attendance
| of losses in the wake of high prices.
the inexorable deflation which in
flation had preceded. 1t has been
| wholly proper to seek to apply
government relief to minimize the
| hardships and the government has
aided wherever. possible. and is
aiding now but all the special acts
ever dreamed OF, all the particular
| favors ever conceived will not avoid
all the distresses nor ward off all
/ the losses. The proper mental
state of our people will commit us
resoiutely and confidently to our
| tasks, and definite assurances as to
taxation and expenditures will con-
tribute to that helpful mental or
der. The only sure way to nor
malcy In over the paths nature has
marked throughout ali human ex-
perience.
Decreased Expenditure.
With the approval of congress
the executive branch of govern
ment has been driving toward that
decreased expenditure which Is the
most practical assurance of dimin'
ished taxation. With enthusiastic
resolution your administrative
| agents are making not only con
scientious efforts to reduce the cal
| Continued on Page Two.)