Evening journal., 1921-07-13

preston OF the world. We little /
needed the growth OF Indebtedness
or the limits OF expenditure during
the war because we could not stop |
to count the cost. Our one thought |
then was the winning OF the war, and |
the survival OF the nation.
We borrowed and loaned-indi- |
viduals to the nation and the gov
ernment to tother governments, and
to those who served the nation-with
little thought of settlement II was
relatively easy then, because national
life was at stake.
Face Problems Never Solver.
In the sober aftermath we face
the order OF reason rather than act
amid the passions OF war, and our
own land and the world are facing
problems never solved before. There
can be no solution unless we face
the grim truth and seek to solve
them in resolute devotion to duty.
After a survey OF more than four
months, contemplating conditions
which would stagger all of us were
it not for our abiding faith in Amer
lea, am fully persuaded that three
things are essential TO the very be-
, ginning OF the restored order OF
> things.
These are the revision, including
= reduction, OF our internal taxation,
the refunding OF our war debt and
2 the adjustment OF our foreign loans
- 1t is vitality necessary to settle
b these problems before adding to our
b. Treasury any such burden as is con-
4, .amplated in the pending bill.
D Tax Reduction Necessary.
1t is unthinkable TO expect bust
ness revival and the resumption Of
the normal ways OF peace while
u maintaining the excessive taxes OF
s war. It is quite as unthinkable to
$ reduce our tax burdens while com
mitting our Treasury to an adai-
tional Obligation which ranges from
So. OOO. 600 900 to 5000. 900, 600. The
precise figures no one can give.
II II is conceivably true that only
= two hundred million year will be
drawn annually from the Treasury
in the few years Immediately before
us. the bestowal is too inconsequen-
tial to be OF real value to the ma
tion's defenders; and If the exercise
. of the option should call for cash
running into billions. the depression
, in finance and industry would be sc
: marked that vastly more harm thar
= good would attend.
- Our Government must undertake
is no obligation which IL does not in
z tend 20 meet. No government fiai
IT will pay our bills. The exchanges
Of the world testify today to tha
+ erroneous theory. We may rely OF
1t the sacrifices OF patriotism in war
ID but today we face markets. and th'
re effect OF supply and demand, anC
ID the inexorable laws Of credits il
N time Of peace
At the very moment We are oblig
&c ed to pay 81 per cent interest 70
NJ government short-time loans to car
"a for our floating Indebtedness, a rat
oi on government borrowing. in spit
- of tax exemptions. which ought q
~ prevail in private transactions 70
the nominal interest charges q
- financing our industry and com
l merce.
Prudence Calls Out Warning.
81, Definite obligations amounting {
70 seven and a half billions in war saw
no ings certificates. Victory Bonds an
G. certificates covering floating indebt
ut edness are to mature in the tw
IL years Immediately following. an
,ie the overburdening OF the Treasur
he now means positive disaster in IN
iii years Immediately before us Mere'
'e- prudence calls out in warning.
I'D Our greatest necessity is a retur
M to the normal ways OF peace acuv
ur ties. modest Offering TO the mi
lions OF service men is a poor pallis
X tive to more millions who may
m out OF employment Stabilize
'ur finance and established conf
I'VE dences are both essential TO restore
industry and commerce.
ol- The slump which is now upon l
M is an inevitable part OF wars afte
'ea math. Il has followed in the wal
lSn Of war since the world began. The
oth was the unavoidable readjustmer
an the inevitable charge-off, the unfa
les ing attendance Of losses in the wal
'e~ Of high prices. the inexorable def
ure ton which imitation had preceded.
1t has been wholly proper TO SCI
to apply Government relief to mil
oe- mize the hardships, and the Cover
To ment had aided wherever possib
and is aiding now; but all the 81
will cial acts ever dreamed OF. all I
rhe particular favors ever conceived "
the not avoid all the distresses nor wa
the or all the losses.
his The proper mental state Of {
IDeople VII commit Us resolstely a