Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1917-10-30

loans s39'se-
Germany is bankrupt today because she
promised TO make Paris and London nay
her war bills and she ls meeting the m
terest on her war loans not from taxes or
income but from new borrowings. She y
stake OF make or break
The British Empire has carefully planned
her her budget and every year raises by taxa
ton more than the interest on her war
debt. She thus maintains her credit.
The United states has plunged In for
war tax program that exceeds 10 manx
tion, even after three years of war.
Great Britain wisely adopted the policy
OF expanding value, and gradual taxation.
We have jumped into the war with a stag
gering burden OF taxation that has vet TO
be met, and If not wisely dealt with II may
result in staggering consequences
The one great advantage In the war tax
bill was the bringing down of the tax 70
every person with a thousand-dollar income.
lowest. and permits a united patriotism.
The tax upon income has substantially ex-
hsusted itself, until values are again built
MUST TAX CONSUMPTION
After inequalities In the present bill are
adjusted by the incoming Congress, the
next measure of taxation must be that upon
consumption, Nobody complains at two
or three cents pound more for sugar.
provided he can get the sugar and the
duce the wages. and when the sugar Is
forthcoming every cent a pound tax upon AZ
would mean hundred millions increment
IT, and luxury, now become a war neces-
sity would be conserved. The attempt OF
previous Congress was to reduce sugar
from cents to ~ by the removal Of the
duty. The result, as was pointed out at the
time time was was the inevitable destruction Of the
the import has been found necessary and
wars demand has added 5 and 6 cents
| more per pound. and the Government does
not get the addition.
.,,,i with full wages in this country. and a
year could be taken from 1t with national
| and individual benefit
1ne gasoline engine over the. horse should
| not De divided with the Government, II
why not tax gasoline consumptionS When
| people In this country were paying twelve
cents q gailon, people in Europe were pay
age wage there was far less. Today the
motor owner in Europe outside the war
| area would gladly paw a dollar a gallon for
gasoline. but he cannot get II at any price.
coIid n TAX Si,r on the consumption OF gasoline
hundred million Let him who rides paw
ana let him who walks thus save a war
In round numbers, we consume more than
seven times what we save. We have passed
| should retrench here and tax consumption
CREDITS MUST BE BUILT UP
! This war must be fought on schemes OF
| finance and taxation which run in a cir
| Gle. Wages, saving and asset values must
| be built UP. and at the same time the wages
| of both capital and labor must be taxed
| and consumption taxes must be steadily
levied and SO placed as not to restrict pro-
| dGction OF necessities, but to restrict II
| possible, the consumption of luxurles thus
| increasing economies and savings .4
| Then on the basis of economies and saw
| ings and expanded earnings and values
credits must be built up, and these must
| be loaned to the Government through the
| Federal. Reserve system. The credit basis
| should not be the Mexican base OF con-
| scripting money from the banks thus de-
stroying the banking credit, or conscripting
| assets by heavy taxation, thus destroying
| individual credit. The Individual must
have his .unconscripted, property behind
| the bank loan, and thus the bank credit
| goes over TO Uncle Sam, and the income
on the bond goes into circulation and d
| again taxed by "a tax on consumption
| Credit taxation, the upbuilding OF values
| must run in harmonious, smooth circle
| and then will be seen the possibilities OF
one hundred billions from America sun
! porting the fight. for liberty. ~ -. -