The Washington herald., 1917-06-15
Don't Play Germany's 8 Hand

II is singular, coincidence that
all Of those who.are seeking meth.
DDS Of taxation which will muddls
the financial scheme of the eoun.
try for the war are either paeihst.
or German sympathizers. If any
one win take the trouble to run
over the list he will be surprised
to see how closely the activities
of those who opposed the Presi.
dent in measures for the protection
of American rights now dovetail
with activities to array the country
into classes, by, sowing discomfort
with arguments that the wealthy
should pay an excessive schare OF
the taxation for war purposes, by
creating uneasiness in the busi-
ness world with proposals to take
profits in such degree as TO inter-
fere with the expansion of indus
trial plants, which is so vital for
the winning of the war.
The Herald thinks that many of
these men would alter their posi-
ton if they could only be made to
realize that such policies are bound
to react not only on business, but
upon the future flotation of loans.
The Herald favors the Senate
Committee revenue bill as against
the House bill, because the SEN
ate Committee appeared to be
taking into consideration impor-
tant matters so essential to a
harmonious scheme of co-ordinat-
ing the industrial elements, the
financial resources and the bond
issues. 1t had hoped that this
Senate Committee bill as it was
advanced toward completion would
continue to improve. But there
are indications that the Senators
have been frightened by the criti-
cisms of extremists and are veer-
ing toward radical action which is
not in consonance with the policy
of making every dollar do a dol
lars work. They are talking about
increasing the taxes on incomes to
the maximum suggestion, and
about increasing the excess war
taxes to an unheard-of point, in
stead of being moderate now and
increasing the taxes a year hence
when capital can adjust itself to
these new conditions.
1t is dangerous ground that the
Senate Committee is treading. 1t
is better at the start to impose in
come taxes not so large as to pre-
vent the receivers of large incomes
from investing in future loans and
in the development of industries
from which the income is derived.
II is better not to tax industries,
whether they have war profits"
or not, so heavily as to cause them
to curtail or suspend.
The Senate Committee need not
think that the public is not be-
ginning to understand this ques-
ton. 1t is no time to impose puni-
tive taxation of capital. Compel
industries to slow down and the
news will be cheered in Berlin,
Capital and labor. make the coun-
try. One is dependent on the other.
Labor must be depended upon to
turn out the full measure of its
capacity. Capital must be depend
ed upon to keep the industries go
ing and to finance the war. There
are to be other loans than the one
now being brought to a close, it
is to be hoped, triumphantly. Bill
lion after billion must be provided
after the first $1,000, ,ooo, 900 have
been expended. This country has
already advanced $1,000, 900, 900 tc
Great Britain, and that country is
now spending on the war $4o,ooo,-
900 day.
Those Of our statesmen who
have ever been disposed to follow
the opponents of the administra-
ton in the House and Senate
should remember that nothing will
so please Germany as to have
future loans fail and to have in
dustries in this country slow
down. If they keep that thought
before their minds the batting OF
the wealthy, Ia Kitchen and Pin
chot, will not seem so desirable,
and they will turn to the road OF
wisdom.
AII