The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1917-04-04
Consumption Of In
comes Meets With
Favor
WOULD CONFTS-
CATE EXCESS
PROFITS
Plan Would Allow L. S.
to Meet Crisis With
out Bonding
BY gibson GARDNER.


WASHINGTON. April 4 -"incom5
CONSUMPTION has jumped to he
front as one Of the issues OF 'hC
moment Congress will include the
subject in the war program de-
bate For war purposes. and dur.
lng The war period. let the govern
ment take al private income above
800 900 year. That is the gist
OF the proposal Below that let A
sliding scale ~ tax BE- provided
which will run down TO two and a
half per cent on incomes Of $4,000.
Finally. provide that prof on war
supplies be restricted TO three and
a half per cent net
This would make IL possible al
most 10 wage pay-as you-entcr
war. No crushing bonded indebted
ness would be left n posterity
England IL raising t7.OO0.O00 DAY
by taxing excess incomes as con-
pared With sl.5OO.o0o raised by in.
come taxes before the war
This plan 10 conscript wealth
comes-strange "a II may seem
from conservative and wealth-own
ing sources. n is seriously advocat-
ed in such a publication as Finan-
cial America and hnds support In
tho Chamber OF Commerce Of the
United States which has gathered a
srecial committee Of IA in Wash
mrton 10 take up the matter OF
Economic patriotism. Speaking
OF the low profit idea, Secretary
Goodwin OF the chamber Of com
merce, said
Our organization favors the prin'
ciple that the basis OF supply Of
government requirements in va
and peace from private sources
Should b. At a rate OF prom so low
as to preclude a pront interest IN
war"
The hrst evidence OF this new
"pocketbook patriotism" was the
announcement that the copper min.
ipg and smelling interests were pre-
pared TO furnish the government all
the copper needed for the war az .
rate about half the current market
rate OF copper. Then came the
agreement of ship builders to be
content 70 build the new navy on a
basis or 10 per cent profit II u
ar open secret that Ebert X Gary
OF the United States Steel corpora
ton has been asked by the Council
OF National Defense 10 do the same
thing for steel products that The
copper people have done for cop
| per products A favorable answe'
is expected
Finanrial America says OF tn
plan 10 conscript wealth.
Financial authorities are virtc
ally unanimous in holding that th'
United states government should 4
once adopt the policy OF radicsll'
increasing taxation IN the event o
actual hostilities With Germany
stating that one 81 TIE greatest mi'
takes Of war financing. both IN n.
country and abroad. has been 'ai
IRE 10 increase government rsvenr
BY conscription 81 individual n
come. "A opposed 20 government
leans. Il is pointed out that the "a,
alton policy more speedily symho
Ives the industrial forces Of a n:
ton for the support OF an army b
the field and also actually enable
country to borrow better by er
forcing thrift among its people %
The Council OF National Defens
and National Chamber OF Commerc
committees are strongly OF IN
opinion that all work for the go'
eminent should al once be put o
the basis Of small guarantee
profit
Interest on bonds Of industr.s
plants must be- paid explained g.,
Rotary Goodwin. The holders e
shares in the companies must nC
suddenly be faced with cessation r
Income. The result OF small qua
anteed profit would be the instaH
sabilizing OF industrial credit an
the complete elimination Of stoc
speculation