The Republican journal., 1922-09-28

T
fled inability of the government to pay
and invites a practice of sacrificial barter
which cannot sanction.
would Undermine Conf lence''
1t is worth remembering that the public
credit is founded On the popular belief in
the defcnsibility of public expenditures,
and well as the governments ability to
pay. Loans come from every rank in
life, and our heavy tax burdens reach,
directly or indirectly, every element in
our citizenship To add one-sixth of the
total sum of our public debt for dstri
button among less than five millions out
of one hundred and ten millions, whether
inspired by grateful sentiment or political
ex ediency, would undermine the coDfi-
dence on which our credit is builded and
establish the precedent of distributing
public funds whenever the proposal and
the numbers affected make it seem po-
litically appealing to do so.
Congress clearly appraised the danger
of borrowing directly to finance bes-
towal which is without obligation and
manifesty recognized the financial prob
lens with which the nation is confronted.
Our maturing promises to pay within the
current fiscal year amount to approXl-
mately S4, 900. 900, 900, most OF which will
have to be refunded. Wi hin the next
six years more than $1,000, 900, 900 of
debt will mature ana will have to be
financed These outstanding and matur-
ing obligations are difficult enough to
meet without the complication of added
borrowings. every one of which threatens
higher interest, and DELAYS the adjust
ment to stable government financing and
the diminuton of federal taxes to the
defersible cost of government.
Must Diminish Our Burdens.
1t is sometimes thouQhtlessly urged
that it is a simple thing for the rich re-
public to add four billions to its indebted
ness. This impression comes from the
readiness of the public response to the
governments appeal for funds amid the
stress of war. 1t is to be remembered
that in the war every body was ready to
give his all. Let US not recall the COM
paratively few exceptions. Citizens of
every degree of competence loaned and
sacrificed, precisely in the same spirit
that our armed forces went out for ser
vice. The war spirit mpelled. To war
necessity there was but one answer, but
peace bestowa on ex-service men, as
though the supreme offering could be
paid for with cash, is a perversion OF
public funds, a reversal of the policy
which exalted patriotic service in the
past, and suggests that future defense is
to be inspired by compensation rather
than consciousness of duty to flag and
country.
The pressing problem of the govern
ment is that of diminishing our burdens,
rather than adding thereto 1t is the
problem of the world. War inflations and
war expenditures have unbalanced bud
gets and added to indebtedness until the
whole world is staggering under the loan;
we have been driving IN every direction
to curtail our expenditures and establish
economies without impairing the essenti-
ais OF governmental activities. 1t has
been difficult and unpopular task. 1t is
vastly more applauded to expend than to
deny. After nearly year and quarter
of insistence and persuasion, with con-
ceIted drive to reduce government eX-
penditures in every quarter possible, 1t
would wipe out everything thus far ac-
complished to add now the proposed bur-
den, and it would rend the commitment
of economy and saving so essential to our
future welfare.
The financial problems of the govern
ment are too little needed until we are
face to face with great emergency. The
diminishing income of the government
due to the receding tides of business and
attending incomes, has been overlooked
momentarily, but cannot be long ignored.
The latest budget figures for the current
fiscal year show an estimated deficit OF
more than 5000, 900, 600 and further deti
cit for the year succeeding even after
counting upon all interest collection on
foreign Indebtedness which the govern
ment is likely to receive. To add to our
pledges to pay, except as necessity COM
pels, must seem,no less than government
al folly. Inevitably it means increased
taxation, which Congress was unwill ng
to levy for the purpose of this bill and
will turn us from the course toward econ
omy so essential to promote the activi
ties which attribute to the common well
fare.