South Bend news-times. (South Bend, Ind.) 1913-1938, 1922-03-05

already required TO pay in annual
interest charges alone practically as
much as was the entire public debt
of five years ago. and that govern
mental operation has been costing
about nine times as much as before
the war. 1t is not difficult 10 realize
the onerous burden upon the tax
payer 10 retire the war debt. In
other words, he would have to pro-
vide an average Of billion dollars
a year additional in taxes, over and
above the financing of the ordinary
/ governmental operations
And all this besides the payment
of the state and municipal taxes.
II is not to be doubted that the
prospect of all this has been having
and still has a decidedly discOur-
aging effect upon the process of re
adjustment and the restoration Of
normal prOsperity-the outstanding
problem of today
Government to RetrcnCh.
For its proper solution. il is es-
sential that there be emulation by
/ all governmental agencies. whether
national, state or municipal of the
example set by private business in
cutting down to a minimum. the re-
cent high expenses, and in displac
ing the cost so cut off with a boost
in efficiency. Better results in the
administration of public work viii
go far in meeting the situation. 1t
viii ease somewhat the staggering
burden on the public. but it Will
still be faced by the twenty-four bill
lion dollar public debt 10 be wiped
out practically within the next 90
years.
Tt being virtually certain that tho
national government will not be able
20 retire the seven and one-half bill
. lions of short time debt when 1t falls
due in the next two years-except
only I'm small Uart-it follows that il
viii have to be refunded. The same
condition is certain 10 repeat itself
as the Liberty bonds Of the later
maturites fall due
believe the plan 20 have the
people pay so gigantic a sum as
twenty-four billion dollars i'm so COM
paratively a short period-besides
paying for the ordinary govern
mental Expenditures too severe
burden for one generation 10
carry alone.
IL is an economic prospect that
would hardly tend to exercise /
strongly stimulating influence upon
initiative, enterprise and progress in
the nations business activities
Both from the standpoint OF bust
ness like constructive financial
policy. and in the interest of impress
ing the lesson Of patriotic response
bihty upon our children, a share of
this war debt should. ] believe be
carried by the succeeding generation.
The war was fought that they might
not be deprived of the benefit of our
free institutions. Should they not
bear a part OF the burden, not only
that our economic life may the
sooner return 10 normal and TO di-
vide what would otherwise be a task
virtually impossible of performance
but also so that there may be per
petuated in them a closer relation
20 and understanding of the princi-
pies and ideals for which we un-
sheathed the sword.
Extend Liberty Bonds.
From every standpoint. the re-
funding of our Liberty loans into
new consolidated issue in which the
AdNEE Oh mat l4l1 rs EAAtHQtQ OAlA
%. say To 90 years. would be a
sound businessIke. forwardlooking
procedure. IL would immediately
reduce by half the obligations which
we must meet in the next score of
years or so and allow us 10 set econ .
omically solid ground once more
under our feet.
There would be another immedi-
ate benefit from such a COurse-one
thar experience with long term Sc
curities would inGiCatC-and that is
increase of the market price of Lib
erty bonds. Investors pay more for
q bond of Ions maturity than for
one that Will bee redeemed in a
shorter period. This is an accepted
fact with hnanciers. Application OF
this principle 10 Liberty bonds would
be certain TO result i'm a greater de-
mand for them and in their in
creased value in the market.
With requirements for ordinary
current expenses reduced by govern
mental agencies of every kind by
radical retreChment. and the distri-
button of the payment Of our public
debt over a longer period, we would
be safely on our way once more 10
a period OF enduring, natural pros .