The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1922-02-14

only S360,000, 900 may be needed to pay
the soldier bonus-and this is a mini
mum guess. for everybody agrees that it
might run as high as $500. 000.0 900 or
approximately $3.50, 100000 in the first
two years-the total amount that may
be required must be taken into consid-
Grafton in any bond issue. In other
words if the government must borrow
$1,000, 100000 more money from the
American people, the total sum that will
have to be obtained will be nearly S.
000,0 900 in the next two or three
years because $1,000, 900 must be
borrowed to pay Victory bonds which
come due. The Victory bonds were only
of five years duration and when they
were issued the government knew the
allies would not be ready to pay any of
the principal so the American people are
in effect 10 wait by accepting new treas
ury certificates instead. The treasury is
in process now of exchanging Victory
bonds for new treasury certificates. The
total amount of war debt is $4,000 600
o and with the soldier bonus bond is
sue the amount would be approximately
ST. 00Q, 200, ZOO.
The finaneiers at the treasury fear
that TO add 81, 800, 100000 to Americas
total debt by borrowing through bonds
would be TO depreciate the value of all
Liberty bonds and to make the American
dollar worth Just so much less because of
the added burden of debt imposed on
Americas resources. TO the argument
that the bond market can readily absorb
the new issue, officials say there's no
doubt of it but that if new government
bonds are issued, Just so much money
which would have been available TO pri-
vate business as a stimulus to industrial
revival win be cut off and normally de
layed.
Business Opposes Bonus.
The business interests of the country
share this view in the main and are op-
posing the bonus tooth and nail and par
ticularly a bond issue.
Ever since direct taxes have been men
toned, on the other hand. the avalanche
of protests has been growing in volume.
Senators and members of the house are
literally swamped with letters and tele-
grams opposing any more taxes. Tn
political effect of further taxation would
b. widely distributed. Members of con
greSs know this and realize that the dam
aging effects of a bond issue would not
be so readily diScernible. There might
be argument about whether the bond is
sue caused a slump but with 50 many
economic factors in the situation. the
exact responsibility would not be 50
easy TO locate. And besides, the full eff
feet of n bond issue might not be felt
until after the congressional elections
because only 100000 600 would be Dor
r0wed at a time and that's not enough
to cause n ripple in the inveStmeut mar
ket in the next six months-at least so
the politicians reason,
The Big Question.
The big question IS whether, to bridge
an emergency of this autumn, a big Dor
rowing will be undertaken or whether
the question will be faced ~squarely by
new taxes, some of which are inevitable
anyway if only to pay the interest on a
bend issue of 81, 800. 100000.
The Democrats originally favored n
bond issue but seeing the tangle in which
the Republicans arc getting themselves
over the bonus they are receding from
that view and quietly withdrawing from
the controversy. They probably will of
for no alternative plan except some un-
workable one which hooks good on paper
that usual minor tactics no matter
whether the label is Republican or Dem
ocratie-in their hearts they will be
glad they are not in power this year to
meet the responsibility of a soldier
bonus.