Evening star., 1927-11-20

vantageously as in freeing the coun-
try from debt.
In the eight years which elapsed
from August 81, 1919, when our pub
lie debt reached its maximum of $26,'
596 ,O76, 900. to August 81, 1927, when
it stood at S1s.309 .625000. there was
reduction of $8.2S7 ,096 900, or of
over a billion dollars year. If such
a rate Of reduction can be maintained
for the next 1874 years, the Nation
will then be entirely out of debt. OF
this amount, $1,752 200, 900 would be
provided for from payments on ac-
count of principal made by the for
eign nations owing us money. leaving
$16557 ,625 900 to be provided by the
taxpayers. However, il it is deemed
wise to reduce debt payments TO an
average of $3.50, 900. 900 a year, it
would then take 24Is years to liqui-
date our obligations. of which amount
foreign debt receipts on account of
principal would take care Of $500
900, 900. leaving the taxpayers to pro-
vide SIS ,669 ,625 900. Or the debt could
be paid off in 80 years If the people
are taxed $500 100000 a year, or for
5000, 100000. and the balance of
81. .3C9 1925 900 provided from our for
eign debtors. from payments on ac-
count Of the principal of their debts
which by that time should have come
TO hand.
Admittedly, there can be no better
economic preparation for emergencies
which may arise than to clear away
as promptly as possible the wreckage
and the burdens of an emergency pc
riod through which nation may have
had to pass. 1t is argued by some
economists that a war is paid for by
the generation which conducts it and
that no part of that burden can be
passed on to future generations. Like
many statements which have met
with approval because of the standing
of those who have made them, this
pronouncement is only partly true 1t
is perfectly evident that the actual
materials used in the. conduct of a
war must be secured while the war is
in progress, the clothing for the sol.
dlers and the food which they con.
sumo, the ammunition and ordnance
necessary TO the conduct Of the war
all have to be obtained. from day to
day and week to week as the war
progresses. and are all consumed in
the same way so that, in this sense.
The generation which conducts a war
fnds the resources with which the
war IS carried on. But, on the other
hand. 1t is true that the financial bur.
den or the war may be passed on for
an indefinite period.
Still Burdened by Waterloo.
For instance, France is still bur
dened by the expenses of her wars
with England and other nations which
ended with the battle of Waterloo. in
1913, and by the expenses of the
Franco.Prussian War in the early 7Os.
similarly, substantial part of the
debt or the British people today was
incurred IN meeting the expenses of
nearly loO years OF war, which ended
III 1915. Italy is burdened by debts
which have come down to the nation
from previous generations. 1t does
not matter that these debts are in.
ternai debts owed by the nation to
the saving classes of it's population.
Ihey are debts for the payment of
interest upon which the nation. as "A
Wnoie, must be taxed. and therefore.
puhlic debt so long as it remains
unpaid involves a burden upon the
taxpayers of the nation, and so true
is this that an examination of the In
come accounts of the nations of the
world today will show that in most
cases the charge Of the public debt
10 'iie VI the neaN DufQenS Wnlch
the nation has to carry.
The reduction of indebtedness fol-
lowing each period Of crisis in our
country's history has not so much
been one of policy on the part of the
Government, although there has al
ways been strong sentiment in favor
Of debt reduction. as it has been that
the growth of the country in material
resources has been so great that the
Government has nearly always been
in position Of having more or less
substantial sums of surplus revenues.
It has been comDaratively easy in the
past for the United States Govern.
ment to keep out Of debt. 1t NAV not
be so easy to follow this course in the
future now that there are no more
new lands to he .taken up and now
that the population is becoming dense
and our condition Is becoming more
nearly that of an old country. There
fore it would seem to he part OF
prudence and good judgment to
Iiuuidate the present Indebtedness of
the country as promptlv as possible
while ii is still easy to have surplus
funds. because the time NAV come,
possibly sooner than now seems prob
able. when this will not he easy and
when we will find ourselves In posi-
tion where we may he unable to
=.