Evening star. [volume] (Washington, D.C.) 1854-1972, 1925-12-31

carno in Europe Is significant. 1t
means at the moment suppression of
political nationalism which cannot but
mean ultimately the rise of economic
combination. The idea of an economic
Locarno to sweep aside the false bases
of PREPARATION mortgages and to substi-
tute therefor a dispassionate recogni-
ton of the facts of production and
future income Is gaining ground
abroad and is not altogether resisted
here. When once Europe demonstrates
that it can cancel a large part OF the
internally debts and start afresh with
d stimulus of real cooperation, the
United States viii not be found asleep
at the switch. forcing payment dollar
for dollar when such policy will di-
minish the chances Of American COM
mercial gain in the long run.
Reducing the Public Debt.
Back of the American debt settle
rnentS has been inside the United
States q by no means negligible po-
litical factor, the need for providing
additional sources Of revenue where
with to pay war loans. But the re-
tirement of the public debt, by apply
ing annual SURPRISES, has been re
tanned as a fixed policy inherited from
preceding administrations, and the re-
funding operations of the Treasury
Department. under the brilliant man
agement of Secretary Mellon, have
been uniformly successful. There is
no use predicting today what the reVe-
nue. possibilities Of the future will be,
but the drive to cut down the public
debt and thus reduce annual interest
charges Is significant. It means that
as these fixed charges grow smaller
and the revenues from taxation IN
crease as q result of productive tax
rates the American people will be in
g. better position or 10 years hence
TO meet the exigencies of a European
situation In which the war creditors
perchance are not able to meet the
annuitieS they promised America
The total sum involved--about 10
billions of dollars in principal-may
become a matter of five billions, for
the British debt is not likely to be re-
duced any considerable amount. Deal
ing with five billions is relatively
simple when once the process of cut
ting the public debt of America is well
under way. The war debts will never
be Cancelled. but their payment will
be constantly postponed. The United
States will always get something In
return for postponement. It's very
much like the big banker in a city
who has extended financial aid to en-
terpriseS which are struggling along
and making a fair return. He at least
commands the use Of their deposits
and in many other ways profits from
an utilization which in some respects
really Is dependence itself.
Outlook Full Of Confidence.
SO the outlook for the future Is
tull of confidence that one hesitates
to define for fear it may sound like
exaggeration. But there never has
been such a feeling of assurance about
the future as abounds today among
the men who have studied the eco
nomic problems of the world. The look
ahead is not mere glance or a guess,
but a matured conclusion based upon
assets and the earning power there
of. America has an extraordinary in
vestment in the rest of the world, not
merely Europe, but Latin America,
which shows every sign Off being null
tiplied. Inside the United States the
growth of population and the attend
ant increase in the size of industrial
operations has brought forth many
prediction that SURPRISES in q few
years will no longer be a troublesome
factor. And when that comes the
products of the farm will bring high
er return and the wages of industry
are bound to be in the aggregate in
VI CdSco DcCduSe LneTe Will De more
people employed, and more employ
ment means more consumption.
Taxpayer Demands Relief.
Taxation Is only a phase Of the eco
nomic evolution of the past year. The
insistence of the taxpayer on relief
has resulted In another revision of
the revenue laws. This will affect to
| small extent the taxpayers below
q It,
| taxes will not amount to much as
whole. Indeed, the saving of 1925 ,000,-
600, which Is the amount which the
Government intends to deprive itself,
is not intrinsically very much. The
big value lies In the attitude Of the
men whose 1ncouas arc above $780,