The New York herald., 1921-07-13
Continued from First Page.

individuals to the nation and the Gov
ernment to other Governments. and to
those who served the nation, with little
thought of settlement.
"It was relatively easy then because
national life was at stake. 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 truths 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 1t not for
our abiding faith in America, l am fully.
persuaded that three things are essential
to the very beginning Of the restored
order Of things. These are the revision.
including reduction. of our internal tax
alton, the refunding Of our war debt and
the adjustment of our foreign loans. 1t
Is vitality necessary to settle these prob
lens before adding to our Treasury any
such burden as Is contemplated in the
pending bill.
1T is unthinkable to expect busi-
ness revival and the resumption of the
normal ways of peace while maintain
ing the excessive taxes of war. 1t Is
quite as unthinkable to reduce our tax
burdens while committing our Treasury
to an additional obligation which ranges
from three to five billions OF dollars.
The precise figures no one can give.
"If it Is conceivably true that only two
hundred millions a year will be drawn
annually from the Treasury in the Few
years Immediately before us, the be-
stowal is too inconsequential to be OK
real value to the nations defenders and,
IL the exercise Of the option should cal.
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
obligat ation which it does not intend to
meet No Government fiat will pay our
bills The exchanges of the world testify
to-day to that erroneous theory. We
may rely on the sacrifices of patriotism
in war. but to-day we face markets.
and the effects of supply and demand.
and the inexorable laws of credits in
time of peace.
AT the very moment we are obliged
to pay 5M per cent interest for Gov
ernment short time loans to care for
our floating indebtedness. rate on
Government borrowing. In spite OF tax
exemption. which ought to prevail in
private transactions for the normal in
terest charges in financing our lnlustry
and commerce. Definite obligations
amounting to seven and half billions
in War Savings certificates. Victory
bonds and certificates covering floating
indebtedness are to mature in the two
years Immediately following. and the
overburdening of the Treasury now
means positive disaster in the years i'm
mediately before us. Merest prudence
calls out I'm warning.
"Our greatest necessity Is a return to
the normal ways OF peace activities. A
modest offering to the millions OF SER
vice men is a poor palliative to more
millions who may be out OF employ
ent. Stabilized finance and well es-
tablished confidence are both essential
to restored industry and commerce.
"The slump which Is now upon us Is
an inevitable part of wars aftermath
1t has followed In the wake of war since
the world began. There was the un-
avoidable readjustment the inevitable
charge-off. the unfailing attendance OF
losses In tho wake of high prices. the
inexorable defation which imitation hal
preceded.
'It has been wholly proper to seek to
apply Government relief to minimize