New-York tribune., 1921-01-29
How Liberty Bonds Were Sold

"You know how the Liberty loans were
sold. They we're sold by the aid of
two principal instruments, the great
Liberty loan organization, and an easy
and artificial money market. l don't
think any Of US who had anything to
do with the Liberty loan organization
feels that that great effort can be re-
peated in peace times. Therefore, the
refinancing must be directed to habi-
tual investors rather than to investors
from motives of patriotism. The re-
creation of an artificial money market
in peace times would be calamity of
the first order. During the war we
undertook to overcome the artifciality
which was inevitable in the situation,
so far as the money market was con-
cerned. by the substitution of other
restraints upon the doings of the peo-
pie.
GAIL through the lives of the Amer
lean people went the control of their
conduct by government agencies, and
! largely that control was made effective
which carle from the devoted desire
of the people to do their part in the
war. 1t is impossible to conceive of
the recreation of those restraints in
peace times.
'1t is impossible to think of finding
any substitute for the control of in
fiation which money rate provides in
peace time. Therefore, the financial
operation involved in taking care Of
$4,000, 100000 of floating debt, or debt
winch VIII be floating before we know
IT, is dependent upon commercial
means, and it is very big job. With
that problem before US we have the
very pleasant knowledge that our
revenues are slipping away from US.
income and profit taxes are taxes on
incomes and profits. Incomes and prof
It's nave been very evanescent in the
year just passed '
The basic problem which confronts
the United States and the world TODAY
is the problem of waste, Mr.. Leffinr.
we'll declared, adding that the onlv wav
10. 70 cure the problem is to stop waste.
it was the war waste. the waste after
the war" he went on, "that brought the
world to Its present pass.
Sought to Win War
IL am not one of those who criticize
this governments war expenditures
The problem of this government was to
WIN the war, and win it quick, and the
fellow who spent his time cheese-par-
ing was no good.
But on November. II, 1918, it be-
VIC uuIy ol tne people of the
~ Unlted states and the government of
tne unlted States to stop it, and they
oldn't. Ihey went right on. The ex-
penses OF this government since Ar
mlstice Day, in two years after ARMS
tlce Day, were as great as in the period
OF actual warfare. l say that is dam
nabie. There is no excuse for it In the
wor!o; there is no excuse for it except
'nat the people undertook to handle
economic problems from a political-so-
cial point of view.
Il do not question the good faith Of
the people who did these things Tbsr
are Republicans and they are Demo.
Gratis, and the responsibility rests in st
as squarely on the Republican Con
gress as on the Democratic Administra-
ton. They expected by spending
money TO keep people employed. They
expected by spending money to keep
away the depression that all knew was
gong 20 come. There is something to
be said for it. Maybe it was better to
have the depression come after tho sol.
dlers had been merged into our nr;vato
iife, but 1T should have stopped a lone
time ago. They kept our ammnn;t;on
plants going; they kept the navy nro.
gram going. and increased it. Thev ran
the railroads at loss and let tho tavs
payer pay. They went on building
ships long after everybody who was
awake knew there was glut of ships.
and they are building them today
under the sublime delusion that that ia
the way to give US merchant marine.
Have Not Had War Enough
More tragic than these mistakes of
economic policy is the fact that we
seem gradually to be drifting into the
conclusion that we have not had war
enough and that the richest and
strongest, the best protected nation on
the earth must lead the world to its
economic ruin through q program that
Involves big army ind big navy"
Discussing specific plans for refund
ing the government war debt. Mr.. Left
! fingweu said he opposed the proposal
to consolidate the whole 1900, 900, 900
into an issue maturing twenty-five to
nifty years from now, pointing out that