Arizona republican., 1922-05-17
War Costs: Past and Future

WASHINGTON. ID. c.. May 10
Although the United States. with the
principal nations of the world. has
agreed to cut down its naval and mill
tary expenses very considerably in
the interests of world peace and in
ternationaI economy. yet of all of the
tremendous amount OF money spent
by the American government. nearly
three quarters is for purposes of war.
This does not mean that rs per cent
OF the outlay of government is for
martial preparations payment for
past wars making up the larger part
of the item.
The whole expenditure by the gov
eminent for 1922 amounts to $780,
1865 OF this great total, no less
than $2,771,S97,976 is to provide for
the army and navy. and pay debts
incurred by wars of the past. The
rest is the payment of interest, PEN
sions, and the like incurred in wars
of the past This sum includes money
for the United States shipping board,
however.
For the postoffice department
S0lO,UUVsVUU lS bbh
this sum is made up from postal
revenues, and therefore the postoffice
department it self supporting. How
ever, the sum must be included among
government expenses regardless or
how that expense is met.
These figures may be slightly
changed by subsequent acts of con-
gress, but as a general comparison,
viii hold good. Adoption of the
bonus plan by congress and its ap-
proval by President Harding woulds
add an enormous item TO the costs of
wars, and make that item in the ma
tional budget an even more oyerpoW-
ering figure than it is now.
The normal government expense
amounts to about u per cent of the
whole outlay of money. Public works
expenditures amount TO only about 30
per cent of the total.
Against considerably more than
$4,000 100000 to be spent on account
of wars-past and possible future
clashes-only little more than $780,
100000 win be spent by the federal
government on good roads The con-
structive department of agriculture
will have to spend on its work or
scientific research and public edu-
cation only about $50,000,000. The
constructive arm of the government,
will have for it's work only about
$35, 900, 900.
Some Economy Shown
Since the great expenditures OF
war times, the Government actually
has economical tremendously. Its
expenditures of those days make the
annual budget of today appear small
by comparison. But those days will
leave their impression for many
years to come in the payment of in
terest charges on bonds, and sink
ing fund for the retirement or gov
ernment obligations at their matur-
ity.
The interest on the public debt,
most OF which was caused by the
World War amounts to nearly
billion a year The sinking fund re-
quires nearly $290.oO0, 900 annually.
For taking care of veterans of the
World War. it is estimated that near
ly $500, 900, 600 will be spent during
the fiscal year 1922. This figure does
not take into account the bonus leg
islation now before Congress. If that
becomes a law, the expenditures for
this purpose will be enormously
greater--it is impossible at this time
to predict accurately just how much
greater
The Treasury Department was dis
appointed in the income taxes pdid
at the first quarterly date-March
Is last-and at present it appears that
estimates of the amount of revenue
to be derived from this source were
too high. Allowance was made for
a falling off and the lower scales of
wages cut the return to the Govern
ment materially below the figure ex
pected. This will mean, with out any
additional outlay Of money by the
Treasury Department, a deficit of
the issuance of short term obligations
of the United States Government,
and will be taken UP in the course of
next year.
However. expenditures for the
Government .are now fixed to all in
tents and purposes. They will be re-
duced gradually. but not by sueh
leaps and bounds that the income
necessary for the Government can be
reduced. With the possibility of the
bonus bin becoming law, not only
can there be no reduction in Govern
ment income. but a very large in
crease.
This years expenses are lower.
too because tina Government now