Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-07-13
TEXT OF SPEECH
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TEXT OF SPEECH
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obligation which ranges from three
to five billions of dollars. The pre-
clSe hgures no one can give. If it
/ Is conceiVably true that only two
. hundred millions 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
tons defenders; and. if the exer-
, else of the option should call for
: cash running into billions. the de-
preston in finance and industry
would be~so marked that vastly more
harm than good would attend.
Our government must undertake
no obligation which it does not in
tend to meet. No government fiat
will pay our bills. The exchanges of
the world testify today to that err
rCneous theory. We may rely on the
, sacrifices of patriotism in war, but
today we face markets and the eff
/ fccts of supply and demand. and the
memorable laws of credits int ime of
peace
Al the very moment we are OBJ
ligcd to pay 81 interest for gov
! eminent short time loans to care for
our floating Indebtedness, rate on
government in spite of tan eXerlp-
ton. which ought to prevail in pri-
waite transactions for the normal in
i terest charges in financing our in
duStry and commerce. Definite OBJ
legations amounting to seven and a
half billions in war savings certi1i-
Gates victory bonds and certificates
covering floating Indebtedness are to
mature in the two years Immediately
following and the overburdcning of
the treasury now means positive
disa ster in the years Immediately
before US. Merest prudence calls out
in warning.
Our greatest necessity is a return
to the normal WAYS OF peace activi
ties. \ modest Offering TO the mil
lions of service men is a poor pallia
tive to more millions who may be out
of employment Stabilized finance
and well established confidence are
both essential to restored industry
and commerce.
The slump which is now upon us
is an inevitable part OF wars after
math. 1t has followed in the wake of
war since the world began. There
was the unavoidable reimbursement.
the inevitable charge off, the unfail-
ing attendance of losses in the wake
OF high prices the memorable de-
fiation which imitation had preceded.
IT has been wholly PROPER to seek to
apply government relief 70 minimize
the hardships. and the government
had aided wherever possible. and Is
aiding now. hut all the special acts
ever dreamed of. all the particular
favors ever conceived viii not avoid
all the djStreSseS nor ward off all the
losses. The proper mental state Of
our people will commit us resolutely
and confidently to our tasks. and def
mite assurances as to taxation and ok
penditure will contribute to that
helpful mental order. The only sure
way TO normalcY is over the paths
nature has marked throughout All
human experience.
With the approval of congress the
executive branch of government has
been driving toward that decreased
expenditure which is the most prac-
teal assurance Of diminished taxa
ton. With enthusiastic resolution
Your administrative agents are max
ing not only conscientious effort 10
reduce the call for appropriations.
but OF reduce the cost of government
far below the appropriations Won have
already provided It is easy 10 be
lieve that the only way 10 diminish
the burdens which the peopie must
pay is TO cut the OUTLAY in which pub
lie moneys are expended. War is not
wholly responsible for staggering
costs: It has merely accenttrate1 the
menace which lies in mountin~ cost
of government and excessea in ev-
penditure which successful private
business would not tolerate -
| can make no definite promise in
figures today hut | can pledge you
a most conscientious drive To re
duce government cost by many mil
lions. II would he most disaourag
ing to those who are bending their
energies TO save millions to have
Congress add billions TO our burdens
at the very beginning.
Even were there not the threaten
ed paralysis of our treasury. with its
fatal refeXes on all our activities
which concern our prosperity. would
il not be better to await the settle
ment Of our foreign loans? At such
time il would he a bestowal on the
part of our government when il is
able to bestow.
The United States participates in
none of the distributable awards of
the war. but the world owes us
heavily, and will pay when restitu-