Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-12-14
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TO their possessions. they compel the poor
man 10 pay more than his share and tie
rich man less than his share. The income
tax is not only more fair in principle than
a tax upon consumption, but throusn
the exemption which il contains, ~ i
measure. equalizes the injustice done b.
the indirect forms Of taxation. since thos'
who escape the income tax are the very
ones who pay more than their quot
through indirect taxation.
The graduated rates. increasing y IN
the size Of the incomes. carry the AT
Proclamation toward justice little
farther. because the larger the income
the smaller is the percentage, as a rule.
taken by the taxes upon consumption
The graded income tax invokrS anoth.f
principle OF government. namely. that ~
the distribution of the burdens oi Ire
government consideration should pe glNs"
to the ability OF citizens % confibute-
and some have gone farther sitll and d
Tended il on the ground that IL tends &
discourage large incomes. The govern
ment would not. however, nave 10 coA
slider the question of dlscouraginS tarEe
incomes if it would only avoid the grant
ing OF privileges and taNors out OF Mhlca
abnormal incomes grow.
In considering money in its relation -
government two things are of paramount
Importance. first, that the quantity -
standard money shall keep pace VIII
population and business. and. second, that
paper money shall be issued and con-
trolled by the government The guam
titive theory of money is now established
beyond controversy. the theory peine
that, other things being equal. prices viii
rise and fall with tho volume or money
The proposition is self-evident that IL
in hard TO understand how u could nave
been disputed so recently by men wei.
informed on other subjects. the GUAM
titiyo theory puts money upon the Same
basis as other commodities the re4ation
of supply and demand beng the con-
trolling factor in axing prices NhereNeF
raeura Jaws are free to operate.
Where metallic money Is used the GUAM
tity IS partly determined by production.
partly by the use OF the precious meta
in the arts and partly BY the Legislation
which determines tho access or metals
TO the minis, which Implies the givin OF
legal tender quality to the metal waen
coined. The advocates OF bmetaiisin en-
Dyed in the defense OF the two metals
the academic arrument that, a the PRO-
duction OF the two metals does not In
crease or decrease exactly In the same
proportion. the unit has greater staoi lay
when 1t rests upon both metals man Wen
1t rests on one metal alone. and also the
practical argument that neither metal
was to be found in sufficient quantity To
make monometalism toierable. A un-
expected and unprecedented discovery o.
gold. however. has brought Into use a
quantity of that metal without paral 81
In history. and thus secured to the word
the advanta ees which bimeta lists had
hoped to bring through the restoration
of silver.
that the government should issue and
control the pager money is that the vol
ume of paper money having direct
effect upon prices, that volume should be
- all h
people, acting in the open, rather than
by representatives of banks, acting in the
dark and for themselves. The issuing OIL
money is not at al necessary TO the
is apt to divert them FROM the Legitimate
purpose of banking, which is to COM
modate the community in which the bank
is located. No people would knowingly
authorize a bank to control the business
of a community; Ii is not only actlns
beyond its powers but in conflict with
the welfare of the public when ii at
tempts to exert controlling influence
The object OF legislation in the mat
ter of b. mixing is to secure 10 the
communities the banking accommo Ia
tons which they need, with protection
from the power that veal h gives 10
those who possess il. Every advance
made in the regulation or banks Is in
tended to increase the security OF the
depositors. This is the purpose or the
bank inspection, of the law compelling
the keeping of a certain reserve AMI OF
the law limiting the amount to De loaned
to any one indivi iual or corporal ton. This
was also the purpose of the postal
savings bank law as it now exists and
Will be the purpose of the enlarge
mentS that are contemplated
There is but one Logical end to bank
regulation and that is the removal Of
every element of uncertainty so that
money deposited in bank be
drawn out at Will. This is the most
~flj
While these subjects are always i'm
portant, there are many others al
demand constant attention. but govern
mental questions are no' difficult "a
comprehend when the control ing prin-
ciples are mastered. jefferson declared
that the art Of government IS the art
OF being honest" and he added that
the principles Of right and wrong are
so easily discerned 10 require not
the aid of many counselors'
The fundamental principles o. popu-
lar government, as they affect The
methods employed and the partlcipa-
.loh OF the people in them. may DE
set forth as follows:
l. The social ideal toward which the
world Is moving requires thu human
Institutions shall approximate toward
the divine measure of rewards and
this can only be realized when each
individual is able to draw from society
reward proportionatc TO his contribu-
ton to society.
:. The form of government which
gives the best assurance OF attaining
TO this ideal is the form in which the
people rule-a government deriving its
just powers from the consent OF the
governed.
). The chief duty OF governments, IN
so Ear as they are coercive is to re
stra4n those who would interfere WIKI
the inalenable rights OF the individual.
among which are the right TO die, the
right 10 liberty, the right to the pursuit
or happiness and the right to worship
dou according To the dictates of one :
conscience.
4. In SO far as governments are CO.
operative, they approach perfection ia
proportion as they adjust with justice
the joint burdens which IL is necessary TO
impose and distribute with equity tht
incidental benefits which come IRON the
disbursement of the money raised by
taxation.
>. Competition is so necessary a fore,
In business that public ownership is i'm
perauye wherever competition Is irlpUs-
sib e. \ private monopoly is indefensiDl.
and intolerable
q. Absolute acquieseence IN the de
cisions Of the majority. the vial priu-
ciple OF republics, from which is no ap-
peal but to force. the vita principle AND