Daily capital journal. (Salem, Oregon) 1903-1919, 1917-09-12
Wall Street Fears Wealth
VIII Be Heavily Taxed

New YORK. Sept, 5. I9IT.-As indi-t
Gated IN our previous review, the heavy
liquidation IN zsoeks during the last
three weeks was due primarily to fright
induced by the radical outbreak IN.
congress The evident desire on the
part Of certain political eliQues 70 pen
sliEe wealth BY conGsztoE taxes when
ever and wherever possible, the real
iLati0u, too, that the era OF p~rofitsering
has about finished, and, finally, the IN
founded rumors that the government
was 70 take owe the railroads gave the
bears an unusual opportunity. PROBES
slOnal raids were frequent and success
tul, meeting With nc effective resistance.
from the big kolders Of securities u
consciously tie radicals in congress
played rEht INTO the hands Of the very
spectators ard uzAipulat0rs they most
desired 70 punish; bat the foolish and
misguided desire to injure wealth Is
unfortunately slll alive. II dies hard,
ven IN congress, watch by this time
should have learned thar il is injuring
It's own best friends BY such tactics.
Whenever capital is struck, il promptly
seeks kildleE environments; enterprise
vanishes and employment slaekens.
The Source Gees Dry.
When profits are attacked. savings de-
cline, there Is less money 70 spend and
the supply q czpitzl Is dried Up a. its
primary source. That ignorance Of the
simplest economic laws still rules where
reason should prevail Is obvious and
lawmakers GO blandsrIng along IN their
confusing career, the ppbie meanwhile
suffering from the folly of such expeEl-
mcats. Happily the radicals were bad
" routed IL the senate vote on the
Revenue Bill cn wednesday, and the ef-
forts 10 impose E practically egl1lS2-
tory TAX OF profits proved : significant
failure. Iastea5 Of the measure in which
II was proposed q lmpOs< taxes OF pro
fits Of 20 10 80 per cent, the bill as
amended by the senate increased the
federal taxes only sl.069.gl0.V9Q = sam
which eau be raised without any harm
full effects The senate IS s whole Is
evidently disposed To act nationally. The
administration Is known to be firmly
cuposed 70 extreme action. realizing
f1n well the parSlyEng consequences
Of closing Up the springs Of capital
FnCe FIXING 5~eaS4-al4r-
In the matter Of price fixing the gov
erament Is also pursuing : reasonable
course. In 10 ease, unless II be that OF
soft coal, has there been any radical
changes from present prices On the
contrary. figures have beea allowed
which viii grant Fro3aceEs liberal Ero-
fits bv preventing giraffe and extreme
speculative Egctazticns ! degree Of sta
bslrv thus being introduced into Ii
6us-v which should prove satisfactory
10 al concerned. Merchants are thus
being freed from embarrassing ulesr-
families and confident II the stability
If prices are more Sble 70 make plans
.ExtezLlng into 1Ae fasare. The public
meamw hLle Is protected from further tx
taIr6sE. willis sufficient profits AavS
sbeea allowed to stimulate pr03aetlo1
To this exfsa1 ths business situation
has been i~=preve3, although 2s steadily
maintained IA these &1vlteS govern
meat Price fixing i uneto-oElt, IN
sound and can oaly Be accepted strict
" as s wsE measure.
No change eAn 6s recorded II the va
outlook Peace talk Is very active !
is auuSrezgly inspired by consciousness.
Z of weakness IN German circles No en-
believes Germany i ready TO Sahzl'
10 the terms which are sure 70 be II
sisted upoz b. the allies, who are max
ing viEoroas preparations for ; siren
nous zm1 decisive c2-g21EZ next SCE11s
a few striking tendencies are CtEL11
II earrez1 events, first, the rIslz.
strength OF the allies N men. uor2A
and E1zl-l5ES sa2, second, Al eg-z-,