Marmaraereglisi City Of Turkey for Economists maintain that a government can finance war in four ways: taxing the people, borrowing from the people, drafting soldiers and other resources directly from the people, and creating money that did not exist before the war. The United States government used all four methods to finance World War I. The War Reserve Act of 1917 increased both personal and corporate taxes and levied excise, excess profit, and luxury taxes. War financing consisted of 24.5 percent from taxes, 61.3 percent from funds borrowed from the public and 14.2 percent derived from creating new money. Marmaraereglisi City Of Turkey 2016.