Gainesville daily sun., 1909-07-01
DISTRIBUTION OF WEALTH.

II Is a great thing i'm a nations life
to reach the point where the accumu-
lation OF wealth beyond the necessi-
ties OF existence give to the people
wide range Of possibilities I'm the
use of their surplus. But IL is even
greater thing. says The Wall Street
Journal. TO find that the distribution
OF these accumulations Is such as TO
conform In some reasonable measure
with sentiments of Justice. Wherever
the possession Of wealth is so 6istrib-
uted as to leave the impression In
the minds OF a large portion of the
people that the dictates OF justice are
violated. there is bound to be a diff.
cult social problem.
The mechanism Of distribution In
the ordinary course of economic
forces Is by the competitive activity
of capital, labor and managing ability.
as we'll as by the control OF natural
resources and opportunities. But
there are so many limitations upon
the free play Of economic forces that
the patience of the public has not
been willing to await the final out
come of economic law as a distributor
of wealth. Under free contract.
which Is the main form under which
distribution of wealth has occurred,
the few with vast wealth az their con.
troll have an enormous advantage over
the many acting as individuals. Hence
the rise OF unionism in collective ef-
fort In the ranks of labor TO meet
the aggregatiOns of wealth in the
form of the corporation.
But this applies 20 a limited num-
Der OF people out of the entire popu-
lation. Part of the inequality which
is left over from the imperfection OF
free contract in distribution Is elimi-
mated by second distributive method.
that is. by free gift. bequest and such
other forms as involved the free dis
position of property and possessions.
The munificent contributions of men
OF wealth to public institutions In the
United States. running into many
millions a year. Is proof OF the pres
ence OF this dlstributive force TO an
unusual extent.
A third method OF distribution is
that OF taxation. The general appli-
cation OF the income tax in European
states. the use OF the inheritance tax
in many of our State commemorative.
and the determination of the Federal
administration TO impose a direct tax
on the net earnings OF corporations,
all show a widespread tendency to
resort TO legal method OF accomplish
ing something more than has been
done under the free play of economic
Law or by the right of gift and be-
quest. The net earnings tax as a
distributiye factor means the trans
fer of from twenty-five To sixty million
dollars n year from the treasures of
corporations to the Federal Treasury
for expenditure in public purposes.
The transfer OF so much wealth
from private purposes to public funds
may or may not mean a wider distri-
button OF benefits. Whether i'm the
end so much wealth transferred from
private to public possession will en-.
rich or impoverish the country is
entirely problematical. II all depends
on whether the uses to which it is
put In public hands will leave the
country in a better or worse state OF
productive efficiency. One thing Is
certain, however. that the function of
government In the distribution of
wealth Is an increasing function and
has to be reckoned with in the fore
casts OF investment and speculation.