Daily capital journal. (Salem, Oregon) 1903-1919, 1917-06-01

attention in congress, details of which
are nearly settled. There has been much
friction over some items, but the results
seem likely to approximately realize the
revenue desired. Time and discussion
are developing a more rational and less
objectionable system of taxation than
at first disposed and the disposition to
use these taxes as a weapon q dlserim-
nation between classes has been largely
eliminated. Early proposals were either
Hinged with desire In nnduly strike
certain interest, or to penalize success
or to unwisely burden the sources OF
capital and thus destroy the very pros
perity upon which new taxes must de-
pend. Excessive taxation of profits
would quickly asphyxiate enterprise and
wipe out the main sources of surplus
savings from which all capital must
grow. Not few of our best thinkers
are also of opinion that it is mistake
to finance the war too freely on the
pay-as-you-go plan; also that larger
share of burden than at first proposed
should be placed in the form of bonds
upon the coming generations, who Will
reap benefits that this generation can
never see. There is still further OBJ
lection to such heavy taxes as now pro-
posed, and that is their effect upon the
average man. His savings have already
been seriously impaired, if not entirely
eliminated by the high cost Of living.
Heavy Taxation Unw1se.
Increased taxes mean dearer commodi-
ties. To tax him excessively is unjust
- mil
diminish his purchasing power, force
stringent economy and prevent MN
from making any subscriptions what
ever to the new loan, which for obvious
reasons calls for popular support. 10
popularize the loan it has been proposed
to issue bonds in denominations as low
as $40, a project however, of .quIes-
tionable prudence because of its lnfla-
tionary tendencies. Existing conditions
make the French policy of raising war
funds both interesting and instructive.
Financially, France today is exception
allv strong. She is financing the war
chiefly out of loans and the ownership
of Gentes is distributed among over
4, 800, 900 holders out of population
of 4O,000,000. As a result the taxable
resources of France are prepared TO
stand any severe strain; while the loyal
tv of the French to their government
is logically strengthened by the fact
that they are so directly interested IN
its welfare.
Congress is much occupied with an
other subject that vitally affects gen
eral business, and that is the regulation
of food distribution coupled with price
regulation, a policy that promises to be
extended to other industries while the
war lasts. This coordination or concen-
tration of industries, although ultimate
" beneficial in many respects, is tenn
porarily unsettling because OF the I'M
possibility of making future commit
ments Should the system work well,
it will undoubtedly be applied to many
other great industries This activity
and overpowering intrusion of govern
ment authority over so large section
of our economic structure is an expert
ment of portentious possibilities.
It Is An Experiment.
Though justified as war measure, such
expansion Of government authority has
not worked satisfactorily in any of the