The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-04-20

Systematically set aside every year certain surplus
revenue from taxation to be applied to the purchase
of productive properties, and that all the profits from
the possessions so acquired shall be renvested in
similar properties The feature of this plan
that will especially commend it to a SOBER hard
headed people like the Americans is its absolute
freedom from risk. The Government would
OF debt stay out OF debt and become richer
and more important every year.
Sober-minded and hard-headed people will be apt
to inquire why the business OF the country which now
consists in the ownership and operation by individuals
of productive property, real and personal, will be-
free from risk when the same productive prop
critics are owned and operated by the Government.
AT present there is large percentage OF failures in
the operation OF these productive properties by
individuals and corporations 1t is estimated that the
losses by risk in such properties ensuing upon the
panic OF 1893 amounted to ten billions OF dollars.
Those losses fell, directly indirectly, upon ndi-
viduals. Does the Examiner that if such loss
fall upon the Government it will avoid the conse-
quences OF business risk by increasing taxation to
make itself whole? In no other way Govern
ment recoup itself. 1t will make no difference to the
people how this increased taxation may be levied
whether by increasing the of using the facilities
and utilities belonging to the Government or by put
ting in motion the ordinary machinery for taxation.
Jefferson did not believe in the Government. en-
barking in business. He thought the Government
should be confined to the exercise OF police powers
and the control OF of defense leaving business
to the people. What is meant by the phrase, The
Government would become richer and more impor-
tant every year,"
In what way would that serve the interests OF the
people? What effect upon popular freedom and the
rights OF man would follow increase in the wealth
and importance of the Government? The phrase
q
business and productive property becoming stronger
and more independent Of the people every year.
When have strong Governments, in that sense been
associated with strong people? Under our system
1t IS intended that the people shall take of the
Government, that the Government shall take care
OF the people.
Heretofore the people have had the privilege of
saying through their representatives, how much tax
they will pay for the support OF the Government For
twenty one years ending June 80, 1893 the tax so
paid for the support of the Federal Government had
averaged five dollars per capita per annum. During
all that period the total average contribution of each
citizen to the Government Sos In place of that
taxation the Examiner would substitute all that
citizen pays out for OF the telegraph telephone
cars steam and water transportation of freight
and passengers for fire. food and clothing and all
OF the necessares of life for these furnished by
the productive properties" which the Government is
to and operate with freedom from risk"
The expenditures OF the citizen constitute the flow
the circulation, of money The citizen in business de-
votes the profits OF his business to the purchase OF
what he needs, the laborer devotes his wages But
the Government is mpersonality When it sells
a ton of coal to a dairyman it will not go to the
corner store and invest the proceeds or the profits
in butter, for it needs no bread The officers of the
Government will eat, drink and wear but they do that
now. The only to be made by the Government OF
its profits according to the Examiner, is "reinvest
ment in productive properties not in the consumable
properties which form the necessaries of life.
Private expenditures even in luxuries of equipment
for objects of and the pleasures OF dress and diet
restore money its proper channels, where it is in
reach OF the individual again. In this way the
extravaganza OF the private individual in large sense
and large measure benefits the of the people.
But public extravaganza the part Of the Govern
ment reduces revenues which have to be replaced by
resorting to increase in some form OF taxation which
the people must endure The owner of private for
tune may fill picture gallery, adorn his person or
increase the state and circumstance of his existence
without adding penny to another's cost of living
But any similar indulgence by the Government must
come by reducing the comforts OF the people through
an increase in their cost.
The Examiner quotes the Government ownership
and operation of German railways as an example in
proof OF the feasibility OF its plan. II the German
railways at the rates and paid the wages of
American railways they would pay profit at all
It is plain, therefore, that the Government profit in
operating German railroads is taken from two
sources the wages of labor and excessive charges on
freight and travel
There is no ground for doubling that our Govern
ment would get any profit at all of its operation
of the business of the country in precisely the same
way. 1t would require the importance" hoped for
and the consequent strength and Capitalization of
power to enable transfer its losses to the people
to its hired men and customers.
There is another point of view from which the
proposition is to be considered and that is the effect
upon the people of withdrawing the incentive to in
dvidual accumulation.
CLEAR THE GROUND IN ADVANCE.
A.