The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-05-15
Frederick Haskin's Letter
.sn-s,, corr.zDopdsnce Of The
WAR cOSTS-PAST AND FUTURE

year, but the amount OF unemploy-
ment and the lower scales of wages
cut the return to the government
materially below the figure expect
ed. This will mean, without any
additional outlay of money by the
treasury department, a deficit of
possibly $500, 100000 or $500
600. This deficit will be met by the
issuance of short term obligations
of the United States government,
and will be taken up in the course
of next year.
However, expenditures for the
government are now fixed, to all
intents and purposes. They will
be reduced gradually, but not by
such leaps and bounds that the in
come necessary for the government
can be reduced. With the posi-
bility of the bonus bill becoming
law, not only can there. be no re
duction in government income, but
a very large increase.
This years expenses are lower,
too, because the government now
is completely out of the railroad
business in the country, except for
its supervision through the agency
of the interstate commerce COM
mission. The losses due to govern
ment operations during and imme-
diately after the World war were a
tremendous item which had to be
met by the taxpayers. Also, the
loss in the government shipping
business was enormous. This loss
still exists, but is very much lower
than heretofore.
Outlay for the Army.
The army alone will cost almost
as much for the year 1922 as the
normal expenses of the govern
ment-the expenses of administra-
ton and constructive work. The
figure for this latter business is
placed roughly at S450,00O,OOO,
while the support of the army in
all its branches will cost about
$425 100000
The navy, due to the agreement
between the powers of the world TO
limit the size of naval ornaments,
will cost considerably less than the
army, but still in the neighborhOOd
of a third of a billion dollars. The
heavy items of battleships and 9TH
er naval construction are shorn
from the expense, but it remains
sufficiently heavy to cause a bit OF
thinking.
The income the government will
receive from scrapping battleships
will offset to some extent the ma
val appropriation. Thousands and
thousands of tons of the highest
grade steel and no little amount OF
brass will be retrieved from the
ships which are scrapped. and this
metal will bring in some money.
However, the value of the mater
ials is very low as compared to the
cost of building a battleship, and
the return on the materials OF the
dismantled masters of the sea may
prove very disappointing from that
angle.
If the bonus bill becomes a law
the house already has passed it
congress will have to turn its at
tention anew to the question of
raising funds. The members of
congress are faced with offending
the strong factions of ex-service
men by refusing to vote for bonus
of some sort, on the one
hand, and the certain antipthy Of
the public generally against levy
ing greater taxes on business and
on individuals.
% There have been so many con-
fiicting estimates Of how much the
bonus would cost the government
that it is impossible to tell accur-
ate1y what the additional drain on
Uncle Sans pocketbook would
to. Because of this, IL Is
to lay out the theory Of
new taxation legislation which
would prove adequate to meeting
the additional strain on the treas
ury. A sales tax has been gug-
gested repeatedly, but whether
such a tax could be imposed and by
itself offset the bonus is a question
which has ardent supporters on
both sides.