Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-09-19

I & '5it,4ls
plan other thap that of q general
sales tax. Such plan was. unaccept-
able to the congress, and the bill has
been enacted without even a sugges-
ton Of means Of meeting the cost. In
deed the cost is not definitely known,
either for the Immediate future or in
the ultimate settlement: The treasury
estimates, based on what seems the
most likely exercise Of the options fig"
ures the direct cost at approximately
$145,000.0QO for 1922, $I45,OOO, 600 for
1928, $22E000,000 for 1924, $114,-
100000 for 1925, $312,000.000 for
1925 making total Of s795,000,000
for the first four years of It's opera
ton, and q total cost in excess Of $4,-
900. 100000. No estimates OF the large
Indirect cost ever has been made. The
certihcatS nlan .stsestss u 1}s: no reserve
avoids any considerable direct outlay
by the government during the earlier
years of the bills proposed operation
but the loans on the certificates would
be f1oated ON the credit Of the ma
ton. ss"*' = Il ~
!, 1T is worth remembering that the
public credit is founded on the popu-
lar belief in the defensibility of pub
lie expenditure, as well as the govern
ment's ability to pay. Loans come
from every rank inSlife, and our heavy
tax burdens reach directly.lor indi-
rectly every element in our citizen
ship. To add one-sixth of the total
sum Of our public debt for distribu.
Esllon am ongs lessatl, III .fivnzn1tiit out
of sone hundred and tell millions
whether inspired BY: grateful senti-
ment or political expediency, would
undermine the confidence on which
-Four credit it builded, and establish the
EHrecedent of distributing public funds
whenever the proposal and the num-
bers affected make it seem politically
I appealing to do SO. ss'*s. 49,.
Refund Necessary.
"Our maturing promises to pay
within the current fiscal year amount
to approximately $4,000,000, most of
which will have to be refunded within
the next six years more than $10,-
! 900, 600, 900 OF debt will mature and
standingSand maturing obligations are
difficultsaenough to meet without the
complication Of added borrowings,
every one of which threatens higher
interest and delays the adjustment to
\ stable government financing and the
diminution of federal taxes to defen-
sible cost of government. 49,
I 1.-THE pressing problem of the gov
ernment is that of diminishing our
burdens, rather than adding thereto.
t+ss x
1--WE have been driving in every di-
rection to curtail our expenditures
and esta blish economies, without i'm:
pairing the essentials OF governmental
activities. After nearly year and b
quarter of insistence and persuasion
with, concerted drive to reduce gov
ernment expenditure in every quarter
1 possible, it would wipe out everything
thus far accomplished to add now
this proposed burden and it would
4 render, the commitment Of economy
and saving so essential to our future
4 welfare t.t t s,",. )
Face Great Emergency.
The financial problems Of the gov.
eminent are too little needed, until
we are face to face with a great EN-.
ergency. The diminishing income o1
the government due to the recedine
tides of, business and attending in.
comes has been overlooked momen
tarily, but cannot be long ignored
The latest budget figures for the cur
rent fiscal year show an estimated. de-
ficit of more than $65O,OO0,000 anG
O further deficit for the year succeed
ing, even after counting upon all In
/ terest collections on, foreign indebt
edness which the government is likel!
to receive. To add to our pledges tt
pay except as necessity compels, mus
seem no less than governmental folly
II Means Higher Taxes.
Inevitably it means increased tax
alton, which congress was unwilling
to levy for the purpose of this bill
and will turn US from the cours.
! toward economy SO essential to pro
mote the activities which contribut,
to common welfare. sssss
II confess regret that I mus
: sound note Of disappointment, to tn
many ex-service mon who have tn
impression that 1t is as simple mat
ter for the government to bestow bill
: lions In peace as Il was to expen.
billions In war. regret to stand be
I tween them and the pitiably smal
compensation proposed. dislike 7
" be out OF accord with the majority Q
3 congress which has voted the bestow
/, al. The simple truth is that this bill
d proposed a government obligation Q
4 more than four billions without 3
provision OF funds for the extraordi
4 nary expenditure, which the executiy
branch OF the government must
nance In the face OF difficult flnancia
A problems. and the complete defeat q
I our commitment to effect economics
~ I would rather appeal; therefore, t
q the ehcandid reflection of congress an
], 1the country and to thesex-service me
! In particular as to the course bette
: a suited to further the welfare ofs'ou
count " These ex- soldiers who serve
S 80 calamity In war, and who eAre,
2 be 10 conspi olsly In the progress I
& the republic In the half century 'bs
$s fore yilis, must know that nations ca