MARCH 20, 1918
Offices, 381 Fourth Avenue, New York

On account of the war and the consequent delays in the mails, both in New York City and on the railways, this copy of
The Outlook may reach the subscriber late. The publishers are doing everything in their power to facilitate deliveries

THE NEXT LIBERTY BOND ISSUE

three one-hundred-dollar bonds which he has bought in the three It is very important, both for patriotic and for material campaigns. He takes them to the savings bank, gets a receipt reasons, that the next Liberty Bond sale, which will begin some for them, and can get them back at any time on presentation of time next month, shall be a complete success. Its oversubscrip his receipt. The proceeds of the coupons clipped and cashed by tion will be a guarantee that the country has the kind of the savings bank will be shown on his pass-book. The increase determination to win the war which General Grant so well of deposits would doubtless pay the savings banks for any expressed in his famous despatch, “I propose to fight it out on expense they are put to in taking care of the bonds and this line if it takes all summer.' Preparations are being made coupons. We do not see that there is any way in which the Gov. for a country-wide campaign, under the direction of the Sec ernment can act in this matter, but the Savings Bank Associaretary of the Treasury, which shall surpass in its enthusiasm

tions in the various States or the American Bankers Asso and efficiency the work of the two previous loans.

ciation for the United States might well take the matter up and Volunteer committees are being formed and private citizens

see if it cannot be universally adopted throughout the country, are preparing in their localities, but it must be frankly recognized that there are certain difficulties in the way of the new A TRADE BOYCOTT OF GERMANY ? loan which did not present themselves in the two previous Lib

President Wilson has said : erty Bond campaigns. Heavy income tax payments are due this summer from the people who so enthusiastically subscribed

The worst that can happen to the detriment of the German for the previous issues, and those issues have in many instances

people is this—that if they should still, after the war is over. depleted the ready cash of buyers. Therefore special induce

continue to be obliged to live under ambitious and intriguing

masters interested to disturb the peace of the world, men or ments are likely to be necessary to persuade subscribers in many instances to make a supreme

classes of men whom the other peoples of the world could not effort.

trust, it might be impossible to admit them to the partnership of Two practical suggestions for making the coming loan especially nations which must henceforth guarantee the world's peace. It attractive have come to our attention that appear worthy of might be impossible, also, in such untoward circumstances, to favorable consideration. The first is made by Mr. Frank Sea admit Germany to the free economic intercourse which must man, which appears in an article on page 457 in this issue. Mr. inevitably spring out of the other partnerships of a real peace. Seaman is a well-known New York business man of large inter This defines the unvindictive spirit with which all men of ests in merchandising and industry. His proposal is to make good will regard this economic question. It defines in especia) the new bonds of more than ordinary value to the merchant and the spirit which animated the United States Chamber of Com. business man by exempting them from liens or attachments in merce, which has now passed, by a vote of 1,204 to 154, a reso bankruptcy proceedings, provided that when they are bought lution warning Germany that unless she abandons her militaristio the buyer is solvent. This would make these bonds a kind of policy an economic combination may be formed against her. insurance for the families of merchants against the inevitable The Chamber has wisely resolved to bring this to the atten. risks of commercial business. We commend a careful reading tion of the business men of Germany,” so that they may tak: of his article.

steps to prevent a “disastrous economic war," the kind of war The second suggestion also comes from a New York business which the overwhelming sentiment among a thousand of our man, Mr. N. T. Pulsifer, the head of an important and local commercial organizations would visit upon Germany. well-known manufacturing concern. He makes it in a letter to Why should we aid economically in rebuilding a militaristu a prominent investment banker of this city, from which we are Germany ? permitted to quote: I have read with interest your pamphlet on “How to Raise

THE “GENERAL EYE” Money for a Third Liberty Bond.”

I quite agree with you that the “ Baby Bond” (that is to say, President Wilson has appointed Mr. Bernard M. Baruci the fifty-dollar bond J appeals to a large number of small investors Chairman of the War Industries Buard. who would not be interested in the War Savings Stamps.

This Board is an outgrowth of the Council of National The chief objection I have heard to the “Baby Bonds” is that

Defense, and that Council is an outgrowth—thougb incomplete-the people who buy them have no place to keep them.

of the popular demand for a body representing the best brain It has occurred to me, and doubtless it has to others, that if the savings banks could be enlisted to become the custodians of the

of industry, of the Army and Navy, of Congress and of the Liberty Bonds so purchased, so that they would keep them for

Federal Executive, to co-ordinate our industrial, military, and their depositors, and cut off the coupons when due, and cash

National resources and policies. them, and carry the proceeds to the savings accounts of their The functions of the War Industries Board are the seeking depositors, two things would be accomplished : first, the safe for additional sources of war supplies, the conversion of existing keeping of the bonds themselves, and, second, the saving of the

facilities to new uses, the conservation of resources, the giving interest paid on the coupons.

of advice regarding prices, the determination of priorities of If the savings banks and other banks with savings depart- delivery, and now the supervision of purchases for the Allies. ments all over the country would unite on this plan, it would

The War Industries Board has developed especially along the not only be a patriotic aid in the stimulation of Liberty Bond lines of prices and priorities. This development the President purchasers, but it would without doubt be of great benefit to further emphasizes in his letter to Mr. Baruch asking whether the savings banks themselves. Small bondholders having he would accept appointment. The new Chairman is to be at savings bank accounts would augment those accounts, and bond least a general surveyor if not a final arbiter, for, in fact, holders not having savings bank accounts would be induced to as the President says," he should act as the general eye in al open such accounts. The machinery would be simple.

supply departments in the field of industry.” Let us suppose that John Smith, of Cornwall, New York, has In the determination of prices, however, from the terms of

of the way.

the President's letter, we assume that Mr. Baruch must be gov however, then we favor one such committee for the House erned by the advice of the members of the Materials Board of the itself. Council of National Defense, the Labor member of the Council, Mr. Sherley added : the Chairmen of the Trade and Tariff Commissions, and the Fuel

We have always been more or less under the tyranny of Administrator.

phrases. Many people speak about a budget without any conIn the determination of priorities Mr. Baruch will be as templation of what is involved. . . . I have always favored a consisted, we assume from the President's letter, in addition to the centration of appropriating power. . . , I have not sought to press present priorities organization, by representatives of the Food, it at this time because of the tremendous tasks that are placed Fuel, and Railway Administrations and of the Shipping and upon Congress in connection with the war. To undertake reform War Trade Boards.

of that magnitude, and reform that did not meet with universal If competition for supplies among the Government depart

acquiescence of the House, would be simply to cripple and not to ments and among the Allies is thus eliminated, the new order

help in the presentation of great financial bills. • .. The true of things may materially contribute toward satisfying the

duty of the budget is to consider expenditures in relationship demand for centralization of Governmental powers.

not simply to the needs or desires of the Government, but to the ability of the country properly to stand the taxation necessary to pay for the expenditures. But : • • you make appropriation's

at this time, during a war, not with regard to the burden that it NEXT YEAR'S COAL

will place upon the people of America ; you make it with regard The regulations recently issued by the Fuel Administra

to the sole requirements of prosecuting and winning the war. tion at Washington are interesting in themselves and welcome

The need for a budget in a peace-time sense does not exist in

war time. because they show that a definite plan is already under way for handling next year's coal problem. It is none too soon to pro

We differ from Mr. Sherley. Doubtless there is a difference vide for this, even though this year's coal problem is not yet out

between peace time and war time. But we feel that the present

war time is precisely the time when a budget is most needed. The average citizen is most immediately interested in the

The urgent necessities of the war, the enormous growth of the question as to how he may and can get coal into his cellar for

National expenditure under present conditions, and the reduo domestic use. He will find that after April 1, when he files his

tion of the Nation's power occasioned by extravagance and coal order, he must file with it a certified statement. In it he

waste, give the matter an importance far greater than it ever must tell how much coal he wants for the coming year, how much

had before. he used in the past year, how much he has on hand, what kind of

We are also sure that there is something required besides exer: heating plant he uses, what sort of house he has and how many

utive action. Congress could, by a just rule, as President Butler rooms, what dealer he has bought from, and what he has paid. of Columbia University recently pointed out, hold in abeyanı In the smaller places coal cards may be used instead of certifi

its Constitutional power to increase or add to the items of the cates.

estimates for expenditures, leaving only the power to reduce or The Fuel Administration urges consumers to put in their strike out--the plan followed in Great Britain. orders early, and suggests that April is none too early. Whether

Nor is this all. In order to enjoy the benefits of the British the consumer will find coal ready for delivery in April in

system Congress should also enjoy the advantages of the British quantity is another question. The plan is that the consumer

Parliament. In the House of Commons Cabinet members sit shall receive only two-thirds of what seems to be a fair year's and answer questions concerning the estimates they have re supply for him, and that after all the orders have been filled to ommended. In this country, not only Cabinet members, but als the extent of two-thirds, then a second round, so to speak, shall

such officials as the Governor of the Federal Reserve Board, supply the remaining third to each. In this way it is thought

the Chairmen of the Tariff and Trade Commissions, of the that a more equitable division of the coal will be made and that Shipping Board, and of the Civil Service Commission, together no shortage will occur.

with the Food and Fuel Administrators, might well occupy seats The regulations provide that an average reduction of thirty

in the Senate and House of Representatives, with the right to cents a ton is to be made by all retailers on coal sold between

participate in debate on matters relating to the business of their April 1 and September 1. Penalties are to be inflicted upon the

respective departments. consumer who signs á false certificate and on the retailer who

By the daily reports in the papers of such discussions the violates the law.

man in the street might at last understand just how the growth in our expenditures has come about.

WANTED-A BUDGET

UNFORTUNATE The Outlook has long favored a budget system for America The March number of the “Metropolitan Magazine." similar to that used by England.

with which Theodore Roosevelt is editorially affiliated, has been At present all our Governmental estimates are made by the barred from the mails by the Postmaster of the City of New heads of the executive departments and go to the Secretary of York. This issue of the Metropolitan” contains two articles the Treasury, who transmits them to Congress. He has no power either or both of which may have led to its exclusion from the to change them., or even to review them.

mails. What we need is, first, that these estimates should be reviewed The first is an article by William Hard entitled“ Is America at a Cabinet council in their relationship to each other and Honest ?" It reports an imaginary conversation between the co-ordinated so as to save duplication and extravagance; and, Kaiser; President Wilson ; Venizelos, Prime Minister of second, that the Secretary of the Treasury should be empowered Greece; and Evangelista, a bandit of Santo Domingo. In this to act as a true financial head, supervising all estimates. article the Kaiser, the Greek Minister, and the Dominican

These reforms should have long since been undertaken by revolutionary quote verbatim from the President's various adthe Executive. Until they are, any reform undertaken by dresses and messages during the last three years and attempt Congress in its treatment of the estimates is only one step in to show their inconsistency. The President, on his part, enadvance, although a desirable step.

deavors to interpret and reconcile his utterances. The article In the Billion Dollar Urgent Deficiency Bill, now being debated is a brilliant and often amusing one, and it must be said that by the House, Representative Sherley, of Kentucky, said that the President is made to hold his own very well in the face of there was nothing really required except such executive action. what are apparently some knock-down blows. But of course its In his Message last December President Wilson, ignoring the manifest purpose is to satirize the variability and uncertainty more elemental reform, recommended to Congress that all its of the President's war policy. committees now handling appropriations be merged into one, A The other article is an editorial by Mr. Whigham, the joint committee of the two houses should be appointed, we editor-in-chief of the “Metropolitan.” It is an attempt to think, so...as to prevent unconsidered items being attached “ Put the Blame Where It Belongs" for our War Department to appropriation bills in the Senate. If this cannot be done, and administrative blunders during the past winter-namely