THE  FUTURE

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tials,  the  result  is  the  same,  as  to  the  release  of  industrial ­
  labor  and  capital  for  war  service,  as  though
this  sum  had  been  taken  in  taxation.  Indeed  to
the  extent  that  the  war  taxes  are  of  so  restricted  a
kind  and  rest  in  the  main  upon  so  limited  a  class
that  payments  will  be  effected  by  the  aid  of  bank
loans  or  at  the  expense  of  further  savings,  there
is  strong  likelihood  that  the  resultant  curtailment
of  unnecessary  production  will  be  less  than  that
growing  out  of  a  widely  distributed  bond  issue  paid
for  out  of  current  savings.
The  final  test  of  a  fiscal  expedient  —  preeminently ­
  in  war  financing  —  is  the  likelihood  of  its
success.  Is  the  direct  absorption  of  an  installment
payable  bond  issue  of  the  needed  volume—even
a  succession  of  issues  extending  well  beyond  the
war  —  within  such  reasonable  bounds  as  to  justify
trial.  The  answer  will  rest  upon  our  estimate  of
the  economic  resource  and  the  patriotic  response
of  American  citizenry.  As  to  the  first,  an  installment ­
  loan  makes  no  greater  requisition  upon  the
income  of  the  nation  than  a  certificate  funding
loan  of  like  amount,  payable  to  like  extent  from
out  of  savings.  Whatever  doubt  there  may  be  on
this  score  therefore  has  to  do  with  the  total  sum
obtainable  by  borrowing  rather  than  with  the  particular ­
  manner  of  obtaining  it.  The  Treasury  in
its  wisdom  will  determine  the  amount  that  may
reasonably  be  obtained  by  borrowing  from  the
national  income,  and  only  the  borrowing  device  is
a  matter  of  choice.
There  remains  the  possibility  of  popular  disfavor