The Washington times., 1907-01-13


sion hostile 10 inheritance of wealth by
individuals. for such inheritance means
inequality Of opportunity.
Private requests. above what is SUI
ticient TO give nurture and education.
must therefore be abolished. and the
surplus used TO give all an equal start in
life" Such is DR.. Wallace's conclusion.
Abolishing Money Power.
Accepting this principle. DR.. Wallace
urges its application To the extinction of
national debts. the acquisition Of rail
roads. ana other like cases. tie would
pay 10 present owners "a reasonable in
terest or pension during their lives and
those Of tneir direct heirs. but he would
ton. The unborn have no rights of
property beyond AN equal chance with
an their contemporaries.
No revenue can be secured except at
the cost of labor. Both land and securi-
ties are worthless without Il. All ar
engagements which permit holders Of
land or securities 10 claim a share OF
the produce OF labor are Ubiquitous. Iiv-
ing people are paying the interest on
loans raised generations ago 70 pay for
wicked wars, or for perpetual pensions
given by immoral kings 20 friends or
parasites. Orthodox views would die
tate that these must continue 10 be paid
forever. or redeemed at their capitalized
value, which would be only funding
them into new form as a burden on the
future.
Taking Over Railroads.
Accepting then that the unborn have.
no property rights that the present is
officially bound TO regard. aside from
the right OF an equitable opportunity
in the world. DR. Wallace proceeds 20
apply his principals 10 the railroad
question. When the Government de-
termines TO take over the railroads.
there viii be merely transfer of
management. Employees viii remain at
their posts; their numbers doubtless
will be Increased in order that shorter
hours and increased public safety may
be assured
Determining the fair rate of dividend
on all classes OF securities on The basis
Of past experience, Dr. Wallace would
thereafter pay dividends at that rate
20 each shareholder during his life.
After his death. widows. unmarried
daughters. and sons under twenty-9ne
years, II left without proper provision.
should be continued the dividends un-
Ill their economic condition was such
as to make Withdrawal Ct the largest
possible Thus, assured OF a certain
and regular income. the great majority
OF security holders would be In better
condition than under the regime OF
fiuctuating returns incident 70 corporate
management
This plan. Or. Wallace points out,
would actually be preferable. from the
standpoint OF the holder Of securities,
10 having the Government buy the rail
roads at a present valuation and pay
cash. raised by bond issues.
Incomes Would Shrink
He shows that if the immense amounts
of cash needed in such a gigantic trans
action-iu the United States somewhere
from eight TO thirteen billions of dol
lars, IL is lkely-WeTe suddenly 10 be
paid over 10 present secuFity-hOlders,
all Of whom would at once seek invest
ment for il in other forms of property,
this competition for good investments
would make their prices so high that
incomes would be far smaller than be-
fore. Thus holders OF small amounts Of
securities. or those inexpert in making
investments. would be worse of than
ever.
An excellent illustration OF the work.
ing of such an exchange is given by DR..
Wallace. In ISIS the English govern
ment refunded its whole outstanding
consoI issue of about three billions OF
dollars. reducing the rate from 8 10
pa per cent. Holders were given the