The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-02-26

revenue deficit OF tso0, 900 900 70
the two fiscal years OF 1922 an,
1928. "'
spreading Out" the Debt.
What then IN TO bc done about it
Sundry official communication haV,
treated the subject OF refundlug tn,
short-term debt, but all OF then
analyze down to a refinement OF In,
postponing process. tho better distri
button OF matutities and "a convC,n
lent spreading" OF the debt over IN,
period between the maturity OF tn,
Victories in 1898 and OF the third
Liberty Ans In 1923.
After the maturity OF the Victor,
notes the sinking fund will not b,
available for anything now consid
cred In the class OF short-term dent
out only for Liberty bonds. As q
policy of prudence II will doubles,
be concentrated on tho 1928 ma.
turity. but It will not provide any
assistance on several billions oI
short-term ebt that will be pay.
able before that time--just how
many billions depends on what pol.
Icy Is followed at the maturity OF
the Victory loan, whether continued
short-term operations or a long term
funding loan.
The Real Funding Question.
IL Is TO this question In fact, that
all roads of inquiry relating to the
treatment of the nearby indebted.
ness finally lead. And Il is this
question of a comprehensive long.
term fundin' loan that. while I'm
numerous phases the most vital eco
nomic issue that Is now before the
country, is also about the most be-
logged and obscured. To that con-
dition many factors contribute--the
strong banking position, the facility
that this affords the government In
frequent short-term borrowing oper-
ations, the born lack of desire In
most persons 10 look ahead. the ex-
nggerated importance attached to a
sinking fund" that is really of most
Importance as a heavy tax burden
with doubtful benefits; and, not
least. the optimism with which i'm
portant factors In the politics OF the
country are contemplating a soldiers
bonus measure that would probably
mean adding to the long-term debt
Instead of refunding the short-term.
Reason for n Bond Car -aign
The arguments for oomprehen-
sive long-term funding operation on
the maturity of the Victory loan.
carried on in about t.Ie same fash
ion as the Liberty bond campaign Of
the war peried. are important
enough to merit the close attention
of the public without further delay
or minimizing OF the question. First
Of all, the federal reserve bank and
the related banking structure of the
country are in fine shape TO supply
all the necessary credit facilities
while the loan is being absorbed. As
in the case OF former loans, the op-
Grafton would absorbe n quantity OF
potential investment funds other
wise more or less sure To be wasted.
1t would develop n new class OF gov
ernment bond buyers among late Inn
migrants and the younger genera
tion since the earlier issues, and
would carry on the benefits OF thrift
and investment education that were
among the by-products of the war
loan campaigns. And II would avoid
recurrent short term demands on
the banks with occasionally unset
tling influence on the money and
investment markets.
If the above Is scarcely n new
chapter in the theory Of government
1t Is at least proposition
that Is receiving too little notice
with not much over q year to elapse
before the maturity OF the Victory
notes. Further. a little more care
full consideration Of the problem
that already confronts the govern
ment would be- useful before the
ting bonus question makes
much more headway in congress