Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-08-23
CONSCRIPTING WEALTH

SO1NoSItlI lIlNu Vbhhlh
THE Senate yesterday ripped open the
- income tax section of the pending
revenue bill and substituted for levies
already radical much more burdensome
and confiscatory rates. The provision to
seize two.thirds of all incomes over a
million is an index of the other increases
in supertaxes. The conscription of the
wealth Of the nation is well under way.
The national income is officially esti-
mated by Washington TO amount approx
imately to fifty billions OF dollars. This
includes all profit of any sort arising
from any industry whatever, from crops,
from manufacture, from mines, from
fisheries, for all human endeavor. That
nifty billion dollars constitutes the SUI
preme hope of the world. 1t is the last
and greatest reservoir to be tapped in
support of the war for civilization. The
integrity of our finances, the absolute
stability of our credit and the main
tenance of our sources of revenue are
sine qua non to the successful prosecu-
tion of the war. Our armies. vast as they
will be, our navy and all the instruments
Of force we are able to employ are Of no
more importance than the wise and provi
dent handling of our financial resources.
A blow to our credit would be more
calamitous than a German victory at
Verdun, and any curtailment of the pros
perity and industrial enthusiasm now
existing would be positively disastrous.
We have met in the last few months
demands for funds such as no netion
before in the worlds history ever expe-
rienced. The Federal Reserve banking
system in this situation has been of in
calculable value. Individuals have trans
lated their patriotism into personal serv-
ice, and they have not volunteered their
lives without offering their fortunes also
,
with his heart. There are other Robert
Morrises who have done the same thing
in this day and generation. Only yes.
terday the West reported the case of
musician who had pledged his entire fixed
income Of 100000 a year to war relief
and would in the meantime depend on
his own efforts for living News came
the same day of dissolution of brokerage
firm on Wall street because one member
had gone to the front and the other was
about to go. No, wealth has not iurked
in the shadows or shirked in the open.
The nation can afford to be proud of the
liberality which has characterized the
American Croesus in this hour of trial.
We assume, therefore, that few men
with incomes exceeding a million will
strive to prevent the confiscatory legisla.
tion proposed. unless their knowledge of
banking and the theory of finance con.
vinces them that the foundations of pros.
perity are being trified with. The ques.
tion is not: Is it right to take two-thirds
of all incomes over a million? The issue
Is whether or not 1t Is safe, expedient and
sound financing SO to do. Senator Lodge
thinks not. He is afraid that the sources
OF revenue will be disturbed unduly, re.
sulting in financial timidty and a gen.
eral slackening of all industrial processes
He may be right and he may be wrong
There is no precedent from which to de
duce the probable result of drastic direct
taxation coupled with drastic price fixing
1t is a shattering of the ancient founda
tions on which the whole commercial
structure of the country has rested. But
Il Ii a time demanding new methods Ole
procedure is being cast aside in every
line of governmental activity
Men of means, whatever final coars,
the Government may take, must cheer
fully comply. If 1t becomes necessary I,
conscript every resource in the nation
animate or inanimate. such conscriptioI
must be accepted and made part of tn,
struggle for the perpetuation of the prin
eiples to which we are devoted. No nee
essary sacrifice will be denied. The coun
try asks only that its affairs be admin
lstersd intelligently and honestly. II
assured OF that, It can endure all burdens