CHAPTER IV.
National Defense—Its Essentials
THE essentials of National Defense are:
Finance;
Industry;
Manpower,
and the complete organization of all three. Their efficient employment demands the existence of suitable plans, complete in all essential detail, and the will and authority to put the plans in force in event of need. There is further demanded trained and competent leadership.
The preparation of plans for the employment of the resources of the Nation in its defense are by law made the duty of the General Staff. Under the National Defense Act of 1920 ample authority is given the President to carry the provisions of the law into effect, and it may be assumed that the work of completing all essential plans has made due progress. While the authority is ample, as stated, there are two obstacles to the accomplishment of all defense plans, viz.:
1. A shortage in trained personnel; and
2. Dependence on annual appropriations, the amounts of which have been entirely insufficient and too problematical. A defense plan worth making and adopting is worth carrying out. Piecemeal or halfway action defeats the success of the best plan.
Finance.—The law makes no provisions for plans regarding finance for purposes of National Defense. The reasons for this are apparent. Under our financial and banking system finance is highly centralized and the Secretary of the Treasury instantly senses any change which portends danger. At the first threat against the Nation reserves could be conserved or increased and business duly warned through financial agencies, i. e., by the banks. The proof of readiness lies in the excellent functioning of our banking system throughout the
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