The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-12-08

Home in Arlington Cemetery:
That is the item of our war
debt. Already this has been re-.
duced by about $4,000, 000, 900,
which means an annual saving in
interest Of close to $3.50, 100000.
The present interest charge Is
about $500. 100000 yearly. 1t
would seem to be obvious that
the sooner this debt car be re,
tired the more the taxpayers will
save in interest and the easier
it will be to secure funds with
which to prosecute needed, run
ming expenses, constructions, AMI
improvements. This item OF
$500, 600, 900 for interest is a
heavy, charge on all the people
OF the country, and 1t seems to
me that we might well consider
whether it is not greatly worth
while to dispense with it as early
as possible by retiring the princi-
pal debt which it is required to
serve.
1t has always been our policy
to retire our debts. That OF the
Revolutionary war period, not
withstanding the additions made
in 1872, was paid by 1885, and
the civil war debt within twenty
three years. OF the amount al.
ready paid, over $1,000, 900, 900 is
a reduction in cash balances.
That source is exhausted. Over
one and two-thirds billions Of
dollars was derived from excess
receipts. Tax reduction elimi-
mates, that. The sale of surplus
war materials has been another
element Of our income. That is
practically finished. With these
eliminated, the reduction Of the
debt has been; only about $780,
100000 each year, not an exces-
sive sum on SO large debt.
Should Pay While Prices Are High
Proposals have been made TO
extend the payment over a period
OF sixty-two years. II 81 ,00O. 000,-
900 is paid at the end of twenty
years, the cost to the taxpayers
is the principal and, If the inte=-
est is Az per cent, total Of
$1,850, 900 900. If the same sum
is paid at the end OF sixty-two
or almost double. Here is an.
other consideration: Compared
with its purchasing power IN
1913, the dollar we borrowed
represented but 50 cents. AS tho
value Of our dollar increases, due
to the falling prices of COM
modities, the burden OF our debt
increases. 1t has now risen to
63h cents. The taxpayer will be
required to produce nearly twice
the amount of commodities to
pay his debt if the dollar returns
to the 1913 value. The more we
pay while prices are high, the
easier it will be.
Deflation Of government after a
war period is slower than della
ton OF business, where curfail-
ment els either prompt and effec-
tive or disaster follows. There is
room for further economy in the
cost Of Federal Government, but a
comparison Of current expendi-
lures with prewar expenditures is
not unfaVorable to the efficiency
with which Government business
is now being done. The ex-
penditures OF 1916, the last pre-
war year, were $742, 600, 900, and in
1925 over $500 100000, or nearly
five times as great. If we sub
tract expenditures for debt retire
ments and interest, veterans re-
lief, increase of pensions, and other
special OUTLAWS, consisting Of re-
funds, trust investments, and like
charges, We find that the general
expenditures of the Government
in 1925 were slightly more than
twice as large as in 1916.
Cost OF Government Increased
AS prices in 1925 were approx.
mately 40 per cent higher than IL
1915. the cost of the same Govern
ment must also have increased.
But the Government is not the
same. 1t is more expensive to col
lect the much greater revenue
necessary and 10 administer our
great debt. We have given en-
larged and improved services to
agriculture and commerce. Above
all, America has grown in popula-
ton and wealth. Government ex-
penditures must always share in
this growth. Taking into account
the factors / have mentioned,
believe that present Federal ex-
penses are not far out Of line with
prewar expenses. We have nearly
accomplished the deflation.
This does not mean that further
economies will not come. AS we
reduce our debt our interest
charges decline. There are many
details yet to correct. The real
improvement, however, must come
not from additional curtailment of
expenses, but by a more intelli-
gent, more ordered spending. Our
economy must be constructive.
While we should avoid as far as
possible increases in permanent
current expenditures, oftentImes a
a L.