Look Our War Debt In the Eye and Pay It Off, April 17, 1919

From the editorial page of The Alamance Gleaner, Graham, N.C., April 17, 1919, J.D. Kernodle, Editor

Looking the Issue—Our War Debt—In the Eye

There are one or two things about our war debt which we might as well look squarely in the eye.

To begin with, we authorized the bills; we woe the money and it’s got to be paid.

Moreover, it’s going to be paid.

To fight the war took money; to win, still more money—and we had to win.

We were ready to fight as long as necessary. We were ready to subscribe to loan after loan—as many as might be needed. We were willing to give—to sacrifice without stint. We had to win—at all costs.

Of course we knew that the war would end some time, but no man knew when. Therefore to make the war as short as possible we prepared for a struggle of indefinite length. It was necessary to plan in advance—and we prepared on a stupendous scale.

This meant, of necessity, that no matter when the fighting stopped there would be bills unpaid. The fact that the war ended sooner than anyone expected does not relieve us the obligation to pay the bills. Indeed, it should make us all the more willing, for if the struggle had continued 12 months longer, our debt would have been $36 billion more than it now is and the toll of dead would have been frightful.

But we are not being asked to sacrifice—to give. We will not have to subscribe to loan after loan. The war has been won, and the bond issue to be offered April 21 is not merely the “fifth” loan. It is the “Victory” loan—the one that finishes the job.

Now there is another matter—the question of taxes.

There are only two ways by which the government can raise the required money—by bonds and by taxes. And it may be set down as a matter of certain conviction that the government is going to raise the money. It has no intention of repudiating its honorable obligations.

But every dollar paid out in taxes is water over the dam. The money is gone—for a good and proper purpose, but gone nevertheless. It draws no interest; at least, none for you. No man yet ever received interest on the taxes he paid.

Money invested in bonds is still on the job. It strengthens your credit; it makes you a share-holder in the government, and day and night it is working for you—drawing interest.

Taxes or bonds—which?

Bonds, of course—Victory Liberty Bonds. Not only because we owe the money—not only because we have won the war—but because we want to settle the bill and get it behind us. The government has pledged its faith. We are the government.