It would be very unwise to postpone dealing with them.  Delay in such a matter and in the particular circumstances in which we now find ourselves as a nation might involve consequences of the most embarrassing and deplorable sort, for which I, for one, would not care to be responsible.  It would be very dangerous in the present circumstances to create a moment’s doubt as to the strength and sufficiency of the Treasury of the United States, its ability to assist, to steady, and sustain the financial operations of the country’s business.  If the Treasury is known, or even thought, to be weak, where will be our peace of mind?  The whole industrial activity of the country would be chilled and demoralized.  Just now the peculiarly difficult financial problems of the moment are being successfully dealt with, with great self-possession and good sense and very sound judgment; but they are only in process of being worked out.  If the process of solution is to be completed, no one must be given reason to doubt the solidity and adequacy of the Treasury of the Government which stands behind the whole method by which our difficulties are being met and handled.

The Treasury itself could get along for a considerable period, no doubt, without immediate resort to new sources of taxation.  But at what cost to the business of the community?  Approximately $75,000,000, a large part of the present Treasury balance, is now on deposit with national banks distributed throughout the country.  It is deposited, of course, on call.  I need not point out to you what the probable consequences of inconvenience and distress and confusion would be if the diminishing income of the Treasury should make it necessary rapidly to withdraw these deposits.  And yet without additional revenue that plainly might become necessary, and the time when it became necessary could not be controlled or determined by the convenience of the business of the country.  It would have to be determined by the operations and necessities of the Treasury itself.  Such risks are not necessary and ought not to be run.  We cannot too scrupulously or carefully safeguard a financial situation which is at best, while war continues in Europe, difficult and abnormal.  Hesitation and delay are the worst forms of bad policy under such conditions.

And we ought not to borrow.  We ought to resort to taxation, however we may regret the necessity of putting additional temporary burdens on our people.  To sell bonds would be to make a most untimely and unjustifiable demand on the money market; untimely, because this is manifestly not the time to withdraw working capital from other uses to pay the Government’s bills; unjustifiable, because unnecessary.  The country is able to pay any just and reasonable taxes without distress.  And to every other form of borrowing, whether for long periods or, for short, there is the same objection.  These are not the circumstances, this is at this particular moment and