Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1922-09-22
it's worth" This is not compensation,

ton in the house l expressed the con-
viction that any grant of bonus ought
to provide the means of paying it, and
| was unable to suggest any plan other
than that of a general sales tax. Such
plan was unacceptable to the con-
gress, and the bill has been enacted
without even a suggested means or
meeting the cost. Indeed, the cost is
not definitely known, either for the i'm
mediate future or in the ultimate set
tlement. The treasury estimates, bas-
ed on what seems the most likely ex-
ercise of options, figures the direct cost
at approximately s145,0O0,00 for 1929,
1925, 100000 for 1924, s114,O00,0O0. for
1925, $312, 100000 for 1926, making a
total of $795, 1000 for the first four
years Of it's operations and a total cost
in excess of $4,000, 100000.
No estimate of the large indirect es-
innate has ever been made. The GER
tificate plan sets up no reserve against
the ultimate liability. The plan avoids
any considerable direct outlay by the
government during the early years OF
the bills proposed operations, but the
loans on the certificates would DE
floated on the credit of the nation.
This is borrowing on the nations cred
it just as truly as though the loans
were made by direct government bor-
rowings, and involves a dangerous
abuse of public credit. Moreover, the
certificate plan Of payment is little less
than certified inability of the govern
ment to pay, and invites a practice on
sacrificial barter which canaot sane
ton.
! 1t is worth remembering that the
public credit is founded on the
popular belief in the defenJibility Of
public expenditure as well as the gov
ernment's ability to pay. Loans come
from every rank in life, and our heavy
burdens reach, directly or indirectly,
every element in our citizenship. To
add one-sixth of the total sun of our
public debt for a distribution among
less than five millions out of one hum
dred and ten millions, whether inspir-
ed by grateful sentiment or political
expediency, would undermine the con-
fidence on which our credit is builded,
and establish the precedent OF distrio-
rtins public funds whenever the pro-
posal and the numbers affected make
it seem politically appealing to do So.
Congress clearly appraised the dan
ger Of borrowing directly to tnance d
bestowal which is without obligation
and manifestly recognized the financial
problems with which the nation IS
confronted. Our maturing promises 10
pay within the current fiscal year
amount to approximately $4,OOO,OOO,ooo'
most of which will have to be funded.
Within the next six years more than
SO 900, 100000 of debt will mature and
will have to be financed. These out
standing and maturing obligations are
difficult enough to meet without the
complication of added borrowings, eV-
cry one of which threatens higher in
terest and delays the adjustment 10
stable government financing and the
diminution of Federal taxes to the de-
fensible cost of government.
1t is sometimes thoughtlessly urged
that it is a simple thing for the rich
republic to add four billions to its in
debtedness. This impression comes
from the readiness of the public re-
sponse to the governments appeal for
funds amid the stress of war. 1t Is 10
be remembered that in the war every
body was ready to give his all. Let
us not recall the comparatively few
exceptions. Citizens Of every degree
of competence loaned and sacrificed,
precisely in the same spirit that our
armed forces went out for service. The
war spirit impelled. To war neces-
sity there was but one answer, but
peace bestowal on the eX-servicc men,
as though the supreme offering could
be paid with cash, is a perversion OF
public funds, q reversal of the policy
which exalted patriotic service in the
past 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 bur-
dens, rather than adding thereto. 1t
is the problem of the world. War in
| fations and war expenditures have
unbalanced budgets and added to in
debtedress until the whole world is
staggering under the load. We have
been driving in every direction to cur
tail our expenditures and establish
economics without impairing the es-
sentials of governmental activities. II
has been q difficult and unpopular
task. 1t is vastly more applauded to
eXpend than to deny. After nearly a
year and a quarter of inSistence and
persuasion, with concerted drive tC
reduce government expenditure in ey-
cry quarter possible it would wipe out
everything thus far accomplished tc
add now this proposed burden, and ii
would rend the commitment to econo-