Evening star., 1928-06-12


terest rates lowered, industry revived,
and unemployment disappeared. The
| Treasury followed this plan with the
$4,000 100000 Victory notes, and with
equal success had in a comparatively
short time refunded at lower rates OF
interest and at convenient maturities so
as to meet them when due either by re-
tirement or reiunding the entire
amount
With this signal success so smoothly
achieved that business scarcely was
aware it was being done. Government
credit Immediately appreciated IN due
time reached par, and later went to a
premium. as shown in the quotations
on Liberty bonds.
This success opened the way for re-
funding the second Liberty loan of
So 800, 900 000 due in 1912 BY October
of last year the last Offering in this
StupendouS operation was taken as low
as per cent, at very substantial saw
ing TO the Government in annual inter-
est. This opened the way to handle the
third Liberty loan, due October next
Before that date this same success Will
certainly be realized.
These financial operations, since
March 4, 1921, reach the staggering
sum Of nearly $l4,000,000,000 of ma
TURTLES, so managed as to avoid any
business Interruptions, and at vast
amounts of savings in interest. 1t is
an achievement which challenges the
record OF all history. and displays a
financial position never before reached
by any people in the history OF the
world.
Result of Management.
This accomplishment was not the
result Of accident but rather of man
agement. BY the observance OF rigid
economy made possible by the enact
ment of national budget law, and the
cooperation OF all departments. great
progress has been made in the payment
Of the public debt, at the rate of near
ly $l,000,000 900 per year. The debt.
which in 1919 was $26, SOC. 900 900 is
now about $4,000. 900 600. with saw
ing OF annual interest OF over $780,
600. 900.
We have also made progress in the
adjustment Of the foreign loans which
with interest up TO 1922 amounted 10
over $4,000, ,000, 900. All the countries
save France have either already ad-
jusred the terms of payment or are
ready TO do so. This places the public
debt in a more satisfactory situation,
and Will be paid off at the present rate
in about 80 years. Our tax reduction
legislation has been as rapid as the
situation would permit. We cut from
the tax bill 1895, 900 900 in 1922, an
addition S400 900 0G0 in 1924, an ad-
ditional 1887 900. 900 in 1926, and last
month another S225 900 900, totaling a
saving Of nearly 81 600. 900, 900 Through
exemptions We have relieved over o.
600, 900 citizens from payment OF any
income taxes whatever This achieve
ment was made possible only on the
sound economic policy Of the Govern
ment under the present leadership, and
was not al the expense OF efficiency In
administration. nor at the loss OF any
needed appropriation.
The financial readjustment from
wartime confusion was in part de-
pendent upon economic readjustment,
Rich natural resources were here await
ing further development. Abundant
capital was here awaiting chance for
investment. Agriculture was here
awaiting markets. Labor was here
awaiting employment. Transportation
facilities were here awaiting traffic.
Business management was here await
ing opportunity. The need Of better
housing With available building mate
riais was here awaiting o construc-
tige building program.
'eThe one commanding necessity at
ton with policy TO coordinate ali
these elements Of material value IN the
production Of wealth, a policy that
would insure the maximum ability and
responsibility In management. and the
minimum loss Of initiative and anbi-
ton ia labor.
These problems were subjects OF con-
ferences soon after Republicans took
fuH control: The best leadership IN
every branch of industry was enlisted
70 mobilize and coordinate all America
. IN campaign of work and save" 10
lift the Nation from the nlire Of ecO~
nonaic prostfation upon a plane Of a
standard Of living never before expert
enced IN the history OF the world This
leadership sought 70 realize the maxi
| mum eflciency In both management
ana labor aS applied to production, and
| 70 secure more equitable distribution
OF the fruits Of effort with the whole
some results VI tI1e most cordial rela-
| liofishIp between labor and capital yet
/ enjoyed In our country. Under that
/ leadership We have reached the highest
/ "aEe scale known In history, a prin-
/ cipse which is maintained ~ sound
economically. Ia that By increasing the
! output per unit, We decrease the cost
/ without lowering wages. and thereby
increase the buying power of the public.
| IfIls principle III practice demonstrates
/ tne formula u modern industry, low
I cost of production N hlgh~grade goods
! MADE by we'll paid labor, and sold at a
/ pfoflt. Uuatg this neg Law of produce
/ LoD, 10 per cent less labor produces
+, ~ pr cent more product.
| Ioeay Wa are IN the longest period
I 0i sustained business prosperity III our
history 10 continue H. free from the
g.
/ concern VI leadership hi industry. In
J ~ aeid Is there a better eztfnple of
+. tAaL property than IN house building
! H9hGlcted under tlle leadership 0f the
I better homes movement iII c0~0peTatI0n
WIN Lt4e Commerce Department, which
fisaS cL!iEtsa IIis Syulpatuellc efforts Of
aonlnant units IN every community, re-
suitl5}E in period 0f eight years III the
( construction III at least three million
! tDpi@k, ettailins an annual Investment
/ u Tour btjli0p dollars, CF u total of more
! nan tbiFEy billion doliai3 IN residence
I b4ilaWg alone III city and country.
+ 4iiFh@ homes are generally equipped
! @iJa HlDGefH EDnyeHlencbs unknown In
me DiG World, and only few years
/ ag9 would nave been isiluFies for ttl.
! lev Americans mo could afford them.
ineFe are more than three times the
/ DnDtDef ~ IlgHf owners among our
/ iaiofihg classes than ean b. found IN
all CLASSES of citizens hi The next great
est ryllntfy ~ the World III these
homes I've American citizens #ho con-
sumo ~ pef cent mare TODD, uae 10
lines tilf number II telephones. II times
~ piiah electricity, 80 times ~ many
a1tGglpDllee, sud ii q similar radio all
modem cDugsnleH1es u life, rs nau be
fg3nG itl The same number " homes IN
Great Britain From these homes ~
~fDjrd mare children ~ Kci1ooI and
nearly ~ times a& many ~ ~ college
o. li} Tie hezt greatest nation ~ Tho
earth
Deposits 81 Increase.
In addition 10 fIlia scale IF fyIFndi~