Evening star., 1940-08-04
Discusses Cost Of
Defense Program
By Frederic J. HdSkin.

tense program is its cost. 1t seems to
take second place in the minds of the
people, for while there has been an in
creaslng outcry in the last few years
against public spending and mounting
taxes, little opposition is registered
against an outlay of $40 900 900 900 for
protection.
Excluding pacifsts, who according to
webster register opposition to war or to
the use of military force for any purpose.
the opinion in the United States has al
ways been widespread that investment
in national defense is a sound and eco
nomical policy. The cost is recognized
but when this is considered in relation TO
probable benefits, opposition is usually
small.
Through the centuries peace-lovirg
nations have tried to find solution TO the
problem of defense without the con-
stantly increasing cost Of maintaining
armed forces. But that solution has
never been found. Records show that
it is not even possible to go from year to
year on the same equipment basis, for
devices Of war are soon outmoded and
must be replaced by something more
modern. When one nation advances its
preparedness program by introducing
more modern equipment, other nations
take the same STEP
Now reading like prophecy, a student
OF international affairs said five years
ago: The one great concern of all ma
tlonS IN an ever-expanding program of
preparedness is the type Of weapons that
may be used in the event of future wars
Aircraft, deadly gases, tanks that know
the power and capacity for mass killings,
are ali being studied. 1t is known to
each nation that all other nations are
carrying on experiments in well-guarded
chemical laboratories" These modern
weapons and other death dealing instru-
ments are not being produced at small
cost.
Preparedness Is achieved and wars
fought on borrowed money. In 1895
Great Britain startled the world bv an
nounclng gigantic rearmament pro-
gram to cover period of five years and
costing s7,50O000000 to be financed
mostly through loans. From the time
Hitler came into power in 1888 until It's
fall under the Nazi stroke. France bor-
roWed heavily to meet its military budget.
The conquest Of Ethiopia by Italy was
made on borrowed funds and Germany
has for several years been the heaviest
borrower of all nations for military pur-
poses.
In 1885 the nations of the world were
spending four times more annually for
national defense than they were spend
ing prior to the first World War-the
event that brought about so much talk
and effort toward peace. Beginning with
1886 and continuing to date, Great
Britain, Russia, Japan, Italy and Ger
many have spent almost so per cent of
their national budgets for preparedness.
Not one of these great powers is able
to meet its expenses without borrowing.
&4+H
Expenditure for national defense or
the actual prosecution of war is still
mounting the world over, which means
that taxpayers are not only burdened
with repaying the principal on loans.
but must be taxed for many years to
meet interest. The general economic
aspect is also affected by military expan-
sions. When huge amounts are provided
for war materials. the cost of COAL iron,
steel and copper rises. This gives oppor-
tunity for rise in prices of other commod-
tiles, and in the end nearly everything
men and women need increases in price.
Fixed salaries being more difficult to
increase. the spread between income and
necessary expenditures widens and the
reserve Of savings is drained to meet the
difference. When the gap between in
come and expenditures reaches an un-
bearable point the demand for goods
almost automatically stops and a crash
is the inevitable result.
Economists in recent years have re-
peatedly pointed out that ever-eXpanding
military budgets may lead the world to
another crash as was experienced in 1929.
To avoid this, for time attempts were
made for nations to reach an agreement
as to how much each would spend an
nually for defense purposes. The un.
willingness of a few nations to accept
such an agreement thwarted the plan
and since then each nation has been for
itself. Confidence between nations now
seems to be the lowest of all centuries,
thus Fastening and increasing the pre-
paredness program of each.
While preparedness is widely approved
by all nations. it is apparently dawning
upon most leaders of the world that wars
result in economic loss rather than gain,
and that even conquering nation can
not escape the unhappy aftermath Of
conflict. 1t is said that even Hitler still
regards his conquests as one of the great
est CANDLES of all time.
kH*+
A Polish banker in 1897 said that the
killing of men in future wars would not
equal the social and economic distress
that would follow. If the social and eco
nomic structures of the world were torn
asunder as result of the first World
War, the bankers prophecy would seem
to stand, even in the face Of the 10000
900 known dead soldiers, 10000 900
wounded, 100000 missing, 10000 900
dead civilians, 100000 war orphans and
100000 refugees. That war cost $780,
100000, 900, but that too is small COM
pared with the loss Of production, de-
struction of property, interruption Of
trade and other losses directly and indi-
rectly traceahle tn that CONFLICT p,,t