| Federal Government | 23 | billion | dollars | gold |
| States and other subdivisions[1] | 7 | “ | “ | “ |
| Approximate total | 30 | “ | “ | “ |
For the sake of argument let us assume that the average redemption period of these obligations is twenty years. We have upon this very general assumption to pay off the total sum of 30 billion dollars, at the average rate of 1.5 billion per annum, in addition to our current tax obligations of approximately 5.352 billion[2] per annum.
If these figures be taken as a basis, subject to correction, we can realize at any rate that we have committed ourselves to an estimate of a surplus earning capacity, in excess of our urgent personal needs, of approximately 6.85 billion dollars per annum. In other words we have more or less unconsciously credited the whole co-ordinated power-plant known as the United States with such capacity. Before now, for the sake of freedom, we have anticipated value and certified it in terms of “gold” dollars: let us do it again in terms of census-area dollars and get rid of the domination of the arbitrary autocracy of gold just as we have got rid of other autocracies. In effect we would say to those who own gold: “Your domination is ended. You may keep your gold with its so-called intrinsic value for which you have always contended.” And to those who own land: “Your domination is acknowledged: with gold eliminated it is obvious—so obvious that we can see it and apportion your responsibility in terms of taxation. We are
- ↑ This figure is a projection, as late statistics are not available. The United States census showed such debts to be 1.8 billion in 1902 and 3.82 billion in 1913. Seven billion is probably an underestimate. The latest statistics available from the Bureau of the Census (April 1, 1922) covering the gross obligations of cities with a population of over 50,000, give a total of $3,956,036,000, with several cities not heard from. The obligations of all smaller cities, together with all Counties and States, must be added to this burden, so that 7 billion is probably all too small. Compare also estimate of tax-exempt securities. See footnote, page 243.
- ↑ “Income in the United States,” page 19. National Bureau of Economic Research, Inc. Harcourt, Brace & Co., New York, 1921.
This figure is shown as the total cost of government, but appears low. W. R. Ingalls estimates 7 billion. See Mining and Metallurgy, New York, April, 1922.
