Arizona republican., 1916-02-15
Scared Capital

The New York Journal of Commerce is deeply disturbed by the disposition of reckless members of congress penalize capital in the form of heavy income and inheritance taxes" and points out that the effect of such policy may be far reaching to interfere seriously with the position of the United States a financial The arguments presented, thinks the Journal of ommerce. be- yond grasp of hort-sghted representatives who ignorant of economic laws as they are incap- able of realizing that capital is absolutely essential o the development and expansion of great industries
 It is important that the United States should attain or hold position financial center as it is that justice should be done to all it's citizens that the expense of supporting the government should be justly distributed among them in the pro portion Of their ability meet it, and that ability be measured by their wealth their income which is the product of wealth ability
 There has seldom been lack of capital for the development of our resources and the expansion American industries. We have felt the lack of cap tal only in time of panic, depression. The capital even then was always here but it with held it would have been if there had been ten times much of it.
 Foreign capital has always been available American users when it could be shown that invest mchls were likely to be more profitable than in any other part of the world. Mexico until the break ing out of the revolution had lack of capital, American, British and German, for development of it's resources. No other country, civilized semi civilized which has been able to hold ducemcnt of profit capital with prospect of reasonable security has suffered lack of capital
 There would be nothing be gained by call ing the capital we need may need, American cap ital. Capital is patriot; it knows no national boundaries. It is nothing in which we can feel a patriotic pride. Capital is always willing de- ser the country, which has given protection when that country is in peril when the necessities of the country compel it to lay unusually heavy bur in it's arguments in favor of pampering capital:
 The liquidation of foreign holdings of American securities which is proceeding steadily being ac- coinpaned by the transfer of other forms of prop erty, presumably to escape heavy taxation and the uncertainties regarding the future which make property holdings precarious in all the belligerent nations. some authorities say that this migration of capital' will continue after war is over and will cause startling changes in financial posi- tons Of the nations of the world Such transfer of capital would, of course be of enormous advant age to tne United States in developing it's resources and financing large enterprises
 But this transfer will be continiied in the race or hostile attitude on the part of congress ana Pl threats to place onerous burdens of taxation on wealth. These things will have an important influence on foreigners We may attract foreign investment, improve competitive position en- large our trade prospects and confirm our fina nca interests, or we may neutralize all that has been done and promised in these respects
 It is true that British capital is being driven to neutral countries chiefly the United States in con-