K
- it.
WARS EAT UP THE TAXES
When I set out to discover for you
where the money you pay as federal
tuxes goes I did not have far to look.
It goes for wars, past, present and
prospective. Last year a little over SXJ
per cent of the national income went
that way. In the report of the secre
tary of the treasury submitted to con
gress in December, 1020, he remarks:
An analyst* of government expenditures
for the fiscal year 1920, on the basts of
daity treasury statements, develops the
Hlrlking fact that of the net ordinary dis
bursements of *0,403,000,000 about 90 per
cent consisted of expenditures under tbe
following heads:
Purchase of obligations of for
eign governments .t 421.000,000
War department . l.Sll.OuO.OOO
Navy department ... 730,000,000
Whipping board . 631,000.006
Federal control of transporta
tion systems and payments
to the railroads under th*
transportation act, 1920 . 1,037.000,000
Interest on the public debt. 1,020,000,000
Pensions . 213.000,000
War-risk insurance . 117,030,000
Purchase of federal farm-loan
fconds . 30,003,000
Where Your
Taxes Go
How Uncle Sam Spends
Your Money in Conduct
ing Your Business
By EDWARD G. LOWRY
Author “Wellington CIOM-Upe." “Banks ar.d
Financial Hyetenis,'* etc. Contributor Political
and Economic Articles to Loading Periodicals
and a Writer of P.ecofrniz*d Authority on tbe
National Gorenuner.t’a Besixicaa Methods.
Copyright, Western Newspaper Uuion
Total .16,716,000,000
Substantially all the expenditures
entering Into this total, and a large
•share of the expenditures on various
uiluor accounts, represent burdens di
rectly traceable to the war, to past
wars or to preparedness for future
wars. These figures serve to Indicate
the direction which sincere efforts to
reduce the cost of the government
must take.
Then I found Mr. Gilbert, the under
secretary of the treasury, saying:
There has been much Idle talk to the
sited that the excessive cost of govern
ment Is "clue to inefficiency und extrava
gance in the executive departments.
Without doubt there has been waste and
Inefficiency In the various government de
partments and establishments, and much
can be accomplished, and has already
been accomplished, by the Introduction
of efficient and economic methods of ad
ministration and the elimination of du
plication and unnecessary work. It might
well be possible to save as much as
$60,040,000 or $100,000,0(0 by careful and sci
entific reorganization of the government’s
business.
The figures show that over 90 per
cent of the total annual expenditures
of the government are related to war.
Out of total expenditures during 1920 of
about $6,400,000,000, about 64s billions rep
resented expenditures directly traceable
to the war. to past wars, or to prepared
ness for future wars. Of this, about
$2,500,040,000 went for the aimy and navy,
over lift),000,000 for the shipping board,
over $1,000,000,000 for the railroads, another
$1 .OOO.OOU.WJO for interest on the public debt,
almost $1x0,001,000 for purchase of obliga
tions of foreign governments on account
of their war expenditures, and the remain
der for pensions, war risk allotments and
- miscellaneous Items related to war. An
analysis of the expenditures of the first
six months of the fiscal year 1921 gives
similar results. The figures also show
that the total cost of running what may
be termed the civil establishment proper,
that Is to say, the various government
departments, boards and commission# and
the legislative establishment, have not
much exceeded $260,900,000 even in the ab
normal war years.
I sought details. If more than 94)
per cent of the entire disbursements
of 1920 went for past and prospective
wars, how much had we been spend
ing to keep the world safe for democ
racy? We are all familiar with the
argument that the best way to prevent
war is to be prepared for war. I
thought I might find out whether that
was true. I went back into the rec
ords and found that year by year,
from 1834 to 1910 inclusive, the treas
ury department laid kept ap account
of the actual disbursements—not ap
propriations, mind you, but actual
f
money expended—of the War depart
raent, the Navy department and for
pensions. When I got till the llgures
before me I couldn't add them up.
In the bureau of Internal revenue
they loaned me u machine and an
operator, and so I know and can tell
you that from 1834 to and through
1919 the War Department actually dis
bursed $113,002,390,008.05. In the same
period the Nuvy Department spent
$0,907,309,032.84; and pensioners of
past wars got $5,634,079,094.23.
That is a thundering totnl of $29.
909,759,041.49 for the army and nuvy
alone, leaving out of account the
$5,634,079,094.23 for pensions.
I will let you decide whether any
part of the twenty nine billion dollars
spent for preparedness and for war
prevented our going to war or found
ns prepared when we went to war.
The three items I have enumerated
are only ribs of the skeleton of the
cost of war preparation and activity.
I have not been able to excavate any
other detail figures. Rut it Is known
that the war of 1812 cost about $133,
703.880.
The cost of the Mexican war is eRtl
matcd to have beeu $63,005,021.
The total cost of the Civil war, tak
ing the period from June SO. 1801, to
June 80, 1806, may be figured closely
at $3,500,000,000.
The treasury In the winter of 1920
21 estimated in a report sent to con
gress through the secretary that the
cost of the World war to us to that
date had been $24,100,000,000, exclu
alve <>f our loans to the allies and
other foreign nations.
Ko you see the cost of wnrs is go
Inc up, no mntter how much money
pi- spend by way of piepuruiiuu.
THE BURDEN OF TAXES
Before the war the government of
the United States spent about one bil
lion dollars a year for all purposes,
including interest on the public debt.
In the fiscal year ending June 30, 1930,
the first full fiscal year after fighting
stopped, the govern ufrnt spent in
round figures six pillion four hundred
million dollars. In the fiscal year 1031,
that Is. up to June 30, 1031, it spent
$0,115,027,089.30, and in the fiscal year
of 1933, which will end on June 30,
1033, it will spend more than four bil
lion dollars, says Secretary Mellon ol
the Treasury Department.
These figures include interest on tin
public debt which amounts 1o about
one billion dollars, but Include noth
ing for sinking fund or other debt re
domptlon. Including both interest ant
sinking fund, the government wil
spend more than four times us mud
the fiscal year 1033 as it spent yearly
before the war.
These expenditures and these heavy
charges are a part of the price of vie
tory. l’our whole present problem if
to curtail them. It concerns you U
know just how these immense siuni
were gathered and how much you pale
and are paying toward them, for o1
course we, the tax payers, the men ant
women with jobs, the men and worner
who have what the census calls gain
ful occupations, paid every cent of it
It W’as our money until the govern
meat took it.
Let us examine the fiscal year 1920
I have not the detailed account foi
1921, but it was slightly less than tin
year previous, as the year ending Jun<
30, 1033, will be a slightly less burden
on us than the year preceding. Ac
cording to a careful analysis made by
the late Dr. E. II. Itosa, of the Unttec
States bureau of standards, a govern
ment scientist who was deeply and In
telllgently Interested In the subject
every man, woman and child In this
country contributes un average o;
ij-mu uumuu iu iUACS iuc suji
port of the national government. Ae
tually it is nearer fifty-four than fifty
three dollars, but I am taking th<
smaller sum for the sake of the roum
number. That is, the average famil;
of five persons pays $265 a year ou
of Its earnings to the federal govern
ment alone, In addition to what 1:
paid for state, county and city taxes
The estimated average yearly incomi
of a family of five Is something mor<
than $700. But before any of that $70
is spent $265 must be turned over t
the ge'nernl government to run th
business of the United States.
The actual amount that each one o
us paid was $55.77. We paid it throug]
the medium of Internal revenue taxe
and customs duties on Imported at
tides divided us follows:
Per
Capit
Income and excess profit.$57.2
Cigars and tobacco. 2.7
Transportation and other utili
ties .
Autos, candy, furs, Jewelry, etc
Beverages .
Special tuxes on capital stock
2.7
a
1.8
etc.9
Kstate inheritance .9
Stamps on Iegnl papers, etc.7
Admissions to amusements, etc. .7
Insurance and miscellaneous_ 21
Total .$53.7
The taxpayer is next of kin to th
treasury. At any rate he is the firs
person notified when the treasur,
needs money, and he always has to dl
down into his jeans for whatever i
needed. Taxpaying, even more thai
charity, begins at home. The boy'
best friend is his mother, but the tax
payer’s only friend is himself. Th
only thing that can be done for him 1
to disclose as vividly as possible hot
much his government is costing am
let him decide what he will do ubou
it. It all comes down to this: Th
more money the government spend
through defective organization or ex
truvngunce, the less you have to spem
or save.
So much for the cost of the nutlona
business we support. We are nil nil
norlty stockholders. The concern hu
no other source of revenue than ou
contributions. It doesn't make an;
money. In times like these, when al
most everybody feels that he gets toi
little for what he sells und has to pa;
too much for what he buys, It seem:
to me the least we can do Is to tak<
an active and intelligent Interest li
ihls great common enterprise of our
and make sure that It is well organ
ized; that It doesn’t waste or spem
extravagantly; that the employees ar<
paid an adequate wage and havi
proper working conditions; that theL
morale is kept high and their enthu
slusui in our Interest unabated; in tine
that ns a business it shall he conduct
ed as efficiently and economically ant
on as modern scientific principles a:
any large private business.
Is it?
That is a question you must nnswei
for yourself after I have acqualutet
you witJi tlie actual situation und con
(iltlou.
Your Life Prospect.
White mules, who have reached th<
ugc of ten, can expect ou the uveragt
to live 50 years more. A generatlor
ugo the figure was only 40 years. Th<
life of man has thus been increase!
four years In about u generation, sayi
u lending Life insurance company
Woman's gain lias not been as great
Her life expectancy is about flfty-tw<
years, a gain of a trifle more than i
year and a quarter. But site still lead)
man. This prolonging of life, says th<
Insurance compnuy, is the result ol
campaigns of health, education anc
public health service. That, and noi
monkey glands. In the loug run wili
prove to be the road to nn uverngt
lifetime of one hundred and Oftj
4
1—Mustapha Kemal Paslin, Turkish National leader, in civilian garb. 2—Ukrainians of New York city dem
onstrating against alleged Polish oppression of their countrymen. 3—Proposed site of the Boulder Canyon dam
for the lower Colorado river basiu, a project which the Department of the Interior has taken tip.
NEWS REVIEW OF
CURRENT EVENTS
Arms Conference Receives the
Completed Program for
; Nava! Reduction.
■ I _
“SUB" TONNAGE NOT LIMITED
1 Chita Delegate* Reveal Alleged Fran
co-Japanese Secret Alliance—Allied
Supreme Council at Cannes—Bit
ter Debate Over Irish Treaty
in Dail Eireann.
By EDWARD W. PICKARD
) its work almost completed,
> VY so far as it can be, the arraa
> uient conference at Washington met in
plenary session at the close of the
f week and heard a report of the pro
1 grain for naval reduction and limita
i tion as completed by the naval com
- inlttee and Its corps of experts. The
treaty for a ten-year naval holiday to
he entered into by the fl'ie principal
1 powers of the world was presented,
3 together with the technical details
7 for carrying it out.
As finally decided upon, the ngree
2 nient Is not so drastic In its plan for
2 reductions as was proposed by ttie
5 American delegation, but the fact re
mains that It puts an end, for a dee
3 ade, to the navy building race- that
7 threatened to swamp the taxpayers of
3 several nations, and It is admittedly
7 a great step toward world peace.
< Modif cat'ons of »lie original plan re
- suited In slight increases in the ton
7 nage limits, and it Is asserted these
changes really strengthen relatively
? the American navy.
For tlit* L nited States, Great Britain,
Japan, France and Italy, the capital
ship ratio Is 5-5-3-1.07-1.67. The tonnage
allowed America and Britain is raised
from 500,000 to 525,000 each, and that
of the others Is proportionately in
creased. France Is permitted to build
a limited number of capital ships dur
ing the ten-year period, and Great
Britain may construct two 87,000-ton
vessels of the Hood type. France
won out in her contentions concerning
submarines and auxiliary craft. No
limit is placed on the aggregate ton
nage of these vessels, but their max
imum size and gun caliber Is fixed. A
limit of 10,000 tons each is put on aux
iliary ships and light cruisers, nnd
their guns are not to exceed eight
Inches. The ratio for airplane car
riers Is to be 5-5-3-2.22-2.22 and the
maximum tonnage for the two largest
powers 135,000. These vessels are
limited to a tonnage of 27,000 each,
and their gun caliber Is restricted.
American naval officers, it is as
. serted, rejoiced over Japan’s success
ful demand that she be allowed to re
tain the dreadnought Mutsu and
France’s persistence regarding subma
rines and auxiliary ships. In both
cases the necessary adjustments re
dounded to the relative strengthening
• of America’s navy. It retains two al
most completed dreadnoughts, and it
will have almost ns great a tonnage
in submarines ns It first proposed in
stead of only 60,000 tons, the point
to which the American delegates were
about to recede when Great Britain
asked the abolishing of the U-boat.
The British announced that if Frnnce
had a great submarine fleet, they must
be permitted to build as many uuxil:ar\
cruisers as they wished, and it is now
agreed America will equal the British
; fleet in every respect.
At this writing there appears to be
little doubt of the approvu! by the
' conference of tlie Hoot resolutions de
claring the employment of submarines
j against commerce us piracy, nnd Mr.
Balfour’s amendment under which the
I banning of submarine operations
against merchantmen shall become im
mediately effective us among the five
major powers.
i
JAPAN and China, through their
delegates, resumed the Interrupted
“conversations" over the Shantung is
sue, but so fur us is now known they
did not make notable progress toward
an agreement. The arrangements for
payment by China for the Kiaochow
Tsinanfu railway were still the stick
ing point. Japan persists in her de
mand that Chinese borrow the neces
sary funds from Japanese bankers,
which, as lias been explained, would
mean a continuation of Japanese con
trol of the rond's operation. It was
hoped, however, that this Shantung
matter would be settled early this week
through the "good offices" of Messrs.
Hughes and Ralfour.
THE delegation from the Far East
ern republic, not being given a
hearing by the conference, created
something of a sensation by giving to
the press copies of alleged secret notes
and treaties revealing a military and
political alliance between France and
Japan for the purpose of establishing
Japanese domination in Siberia and
stabilizing French interests in Russia,
and to frustrate America's policy in
tlie Far East. The documents were
declared to bo fabrications, by both
the French and the Japanese delega
tions, and die United States govern
ment stated it has no official infor
mation concerning any such agree
ment. But it is usserted there are in
tlie files of the State department re
ports from American observers in a
general way confirming the allegations
of the Chita representatives, and
there is talk of a senatorial investi
gation into the Siberian situation.
Later in the week the Chita dele
gates produced another document, this
time an alleged treaty between the
Japanese army in Siberia and Rus
sian officers connected with Semen off,
anti-Bolshevist leader, whereby the
Japanese agreed to support with arms
and money an offensive against tlie
Chita republic. Baron Kato, in re
ply, admitted that a former Japanese
cabinet paid Seinenoff a certain amount
of cash to keep him in the field.
C ENATOR HIRAM JOHNSON in an
^ address in San Francisco set forth
in considerable detail his objections to
the Pacific peace treaty agreed to by
the arms conference. lie especially
dislikes Article 2, which lie thinks us
bad as Article 10 of the League of
Nations. Senator McNary of Oregon
thinks the treaty offers a fine chance
for settling the Philippines problem
and when it conies before the senate
he will offer this reservation:
“The United States agrees within
two years to grant complete Independ
ence to the peopla of the Philippine
islands, provided the high contracting
parties will obligate themselves to re
spect the political independence and
territorial integrity of the Philippine
nation.”
FRANCE’S attitude in the Washing
ton conference had its reflection in
the conference of the allied premiers
in Cannes, France, for the purpose of
discussing (Herman reparations- and
the economic welfare of Europe gen
erally. Lloyd George went there ap
parently with tlie intention of making
the improvement of Franco-British re
lations dependent on Briand's consent
to plans for the economic rehabili
tation of Germany and Russia. Briand
and his staff were pledged to make
France’s reconstruction the basis for
the rebuilding of Europe, but they
found that they had the full support
of Belgium alone. In an interview in
the London Daily Mall Briand pro
posed a defensive alliance between
Great Britain and France, and In a
preliminary talk with Lloyd George he
suggested that such an alliance was
the only way in which the two na
tions could avoid a controversy over
submarines and naval strength. It was
said the British premier rebuffed the
suggestion, and there is good reason
to believe the British public would
not stand for an alliance until France
hus made considerable concessions, es
pecially concerning Germany and
Russia.
Ambassador Harvey is present at
the Cannes conference, but only in
the capacity of official observer, for
the United States has no vote and
hus taken the position that it will en
ter European affairs only when its
interests directly are involved. While
not concerned in the plans for pay
ment of the reparations money or for
a moratorium for Gennany, the United
States is decidedly interested in the
proposal of a consortium for the re
const ruction of central and eastern
Europe because it Involves the matters
of markets and raw materials. The
meeting of the allied supreme council
was opened on Thursday.
EUATE on the Irish treaty was al
most overshadowed In Dublin by
the kidnaping, presumably by support
ers of De Valera, of A. B. Kay, cor
respondent of the London Times, und
by a hot discussion in tlie Dali Elreann
concerning the freedom of the press,
provoked by un attack on the Free
man's Journal because it advocated
ratitlcation of the pact. The corre
spondents united in a demand thut Mr.
Kay be released and that a public
apology for his kidnaping be made in
the Dail Elreann.
Tlie strength of the opposition to
the peace treaty in the Dail Kireann
when it reassembled after the holidays
was unexpected. L>e Valera, Countess
Marklewiez and many others denounced
the pact bitterly and were not at all
abashed by the arguments of Its sup
porters. tin Wednesday De Valera
Issued u proclamation to the “People
of Ireland” and also circulated copies
of the "Document Xo. 2” shorn of
several of its clauses. This latter
was De Valera's proposed alternative
pact, and a fierce debate at once arose
over whether it should be considered
as an amendment to the treaty and
voted on iirst, as De Valera wished,
or whether a vote should first be taken
on the treaty and, If It were unfavor
able, then on the alternative. In the
course of the row lie Valera shouted
that he was “going to move this amend
ment at my own time and in my own
way,” and when reminded tills was a
matter for the chair to decide he
hotly retorted: “I am tlie president
here and I am going to make my own
rules of procedure in my own way
and at my own time.”
i lie alternative is not vastly aii
forent from the treaty arranged in
London. It provides that the legisla
ture, executive and judicial authority
of Ireland shall be derived solely from
the people of Ireland; that for the pur- j
pose of common concern Ireland shull j
be associated with the states of the |
British empire, with rights, status and i
privileges in no respect less than those j
states, and that for the purposes of |
the association Ireland shall recognize j
his Britannic majesty ns head of the
association. Most of the other terms {
are similar to those of the treaty.
'T'UK death of Senator Boies Penrose
of Pennsylvania not only deeply
grieved his many friends and admirers.
It ulso caused considerable dismay
among those who do not approve of
the so-called agricultural bloc in the
senate. For Penrose was chairman
of the senate finance committee and
if the system of seniority is adhered
to his successor in that place of power i
will be Senator MeCumber of North I
Dakota, one of the charter members
of the bloc. Penrose also was
recognized as the leader of the con
servative element in the senate, and
in this position he is succeeded by i
Senator Watson of Indiana.
<>ov. W. c. Sproul of Pennsylvania
was urged by some Republicans to re
sign and accept apimintnient to fill
out Penrose’s unexpired term, but this
he declined to do.
D RESIDENT and Mrs. Ilarding re
* vlved the custom of holding a New
Year’s reception to the public, and all
official Washington followed suit by
keeping open house on Monday. Among
the callers at the White House und
guests at the diplomatic breakfast was
Hr. Karl Lang, the newly arrived Her
man charge d'affaires.
A f'CORDING to a New York news
paper. Posimi.: or Will Hays has
accepted the position of director gen
eral of the Nationa' \ssociution of '.!
Mo inn Picture u.i...-trv which v.
offered him some time ago. It is ;a <:
Ids contract is for three years at u
salary of $150,000 a year. The as
sociation embraces in its membership
all the motion picture producers in the
country.
C BITING down the estimates of
Prohibition Commissioner Haynes
by $750,000, the house appropriations
committee recommended the appropria
tion of $9,250,000 for prohibition en
forcement during the next fiscal year.
This will provide for the employment
of about 800 more agents. Mr. Haynes
also wanted $550,000 to Increase the
salaries of agents to keep them honest,
hut this the committee refused.
rRAFFIC WEAR ON BRIDGES
<few Instrument Measures With Scien
tific Precision the Effect of
Every Shock.
Prepared by th« United States Department
of Agriculture.)
A new Instrument devised by the
mreitu of public roads of the United*
states Department of Agriculture
ueasures with scientific precision the
'fleet of every shock and blow doJiv
■red by moving vehicles in crossing a
iridge. Attached to any part of the
nidge structure, this instrument
uakes a photographic record of the
?ffect of the moving load. The amount
>f stretching or shortening of the part
is n result of the shocks Is represent
'd by a fine black line on' the photo
graph.
No blow or shock can be delivered'
;u quickly that the instrument will not
record its effect. It lias never before
seen possible to measure the effect of
rach blows. Engineers liuve long been
»hl<* to calculate the effect of standing
loads very exactly; but because of
[heir inability to measure the effect of
juickJy delivered blows or impacts,
[hey have never been aide to propor
tion the various parts of a bridge with
Absolute assurance. It has been nec
essary to make a liberal allowance for
tlds unknown quantity. In some ease*
[lie allowance bus not been sufficient
and tlie bridges have collapsed under
moving loads.
Many bridges still in service are
probably too weak to withstand safely
the sharp blows of swiftly moving
vehicles, though they will safely carry
(lie same vehicles at rest or moving
at slow speed. The familiar warning
posted at the portals of a bridge:
"Speed limit on this bridge eight mites
per hour," means that tlie design of
the bridge to which it is attached is
not strong enough to allow for impact.
In the light of tlie recent experiment*
with motortrucks in which it was
shown that a swiftly moving motor
1
m
Concrete Structure Built to Withstand
Swiftly Moving, Heavily Loaded
Motortrucks.
truck may strike a blow equivalent to
seven times its actual weight, it is
rather surprising, the department road
experts say, that failures have been m»
few.
It is believed this new measuring in
strument will soon do away with un
certainty. The knowledge gained by
Its use will enable the engineer to de
sign bridges, which are sure to hold
up under fast-moving vehicles, and t#
build such bridges without undue
waste of materiul and money.
GOOD ROADS AID PROSPERITY
Sum of $300,000,000 Loet Last Year by
Farmers Unable to Get to Market
Over Highways.
Good roads are the greatest single
factors in securing and maintaining
“community prosperity.” Last year
tlie sum of $.‘{00,000,000 was lost by
fanners in being unable to market
their products over had roads. Road*
that are impassable during part of
the year cost farmers in every cona
munity thousands of dollars a week.
When one stops to think that in
every township laid out iu section*
there are 72 miles of roads, it is easy
to Imagine the mileage of roads in
this country, says a writer in an Ex*
change. Of these hundreds of thou®*
ands of miles of roads and streets,
comparatively few miles are paved,
and a noted authority on road build
ing prophesies that not more than 8
per cent of all the roads in this coun
try will be paved by 1926.
It would be excellent if we could
have all hard roads—brick, concrete
or macadam roads, which are good
all year roads. We should have more
of them, ltut it is impracticable t»
pave every country road. However,
it is just as important to have good
! iterals lending to tlig main roads a*
it is to have hard surfaced main road®.
So we must do the best we can and
properly maintain our dirt roads and
streets.
Automobiles Must Take Turn.
Twenty-one thousand miles of road*
have been built with federal aid In the
last five years, and these, of course,
help out a whole lot, hut progress may
have to be even greater in road
building unless the automobiles are t©
take turn about.
-.
Pavements.
Motortrucks ruin pavements nboot
as fast as they are laid. As fast a*
pavements get stronger, trucks f$t
larger and loads heavier.