Evening journal., 1917-04-12
Acr Mini ADMINISTRATION AND WISDOM.


~ EORGE e. ROBERTS of the National City Bank
VI Of New York discussed the effects OF the demands
the war upon the industrial and financial situation
before the Chamber Of Commerce in Cleveland, o., on
last Tuesday. He said:
"The proposal OF a S5.OOOOOO,OOO loan, the pro
ceeds be expended presumably within year, besides
what will be raised by taxation, shows that there
must be an important shift OF labor from ordinary
work The first problem is to release the labor supply
required by suspending undertakings that are not i'm
peratve by tho Improvement OF methods, by the SUD
stituton OF women, and by the elimination OF unneces-
sary expenditures
drhe next problem is TO raise the money required.
This involves shift OF capital corresponding TO the
shift Of labor In peace capital and labor must
go together The capital must be found either by taxa
ton loans presumably by both methods lnasmuch
the loans must be carried and paid by taxation the
question at last is how taxation Tor all purposes sha
be distributed
Undoubtedly wealth expects to bear the brunt of IT,
and believe it is ready and willing TO do so, but the
final effects of taxation may reach far beyond the di
Feet levy One OF the principles Of wise taxation is
that it shall be levied TO bear lightly prae-
ticabe upon industry which involves the general war
fare AS between two men having equal incomes, one
of whom half OF his income for investment while
the other spends all upon his living the first is the
more useful citizen He is helping to carry industry
forward and taxation which reduces his investments
has an effect upon community progress which taxation
upon the other income does not have"
Many patriotic Americans agree heartily with Mr.
Roberts who is recognized Of countrys lead
ing fananciers.
We fail to'seo how, in the present great national
emergency, anyone attempt to dispute his asser-
ton that there is imperative necessity for releasing
all tho labor possible that is not required for the
prosecution OF imperative undertakings.
Nor should the Federal Government in seeking to
solve the financial problems growing out Of the
permit itself to become ratified to seek to shove
through Congress- without due deliberation. hnan-
oal programme which second thought may prove to
be unwise Viewed as a whole both capital and labor
patriotic in this crisis. Each should receive due
credit its patriotism Neither should be harassed
unduly tho preparatory work in progress. Ger
tainly the system of taxation finally agreed upon
should bear lightly possible upon industry 1t
should be recognized from the outset that capital is
Of the prime essentials for production The larger
the percentage OF income taken for taxation, the
smaller the amount left for investment in industrial
and other beneficial channels. With policy OF capi-
tai depletion and investment reduction multiplied all
over the United States the inevitable result will be
vastly dearer capital II II be repeated time after
time there will be constant increase in the cost of
everything produced and the general result will be
both uneconomical and injurious to the American peo
pie and the warke for which they con-
tending.
Another phase OF these plans which should be
acted upon with deliberation and circumspecton is
that which has 70 do with the regulation Of the prices
Of foodstus Committee for the Prevention OF Waste
would be OF much greater benefit to country JUS
now than Committee TO Regulate the Prices Of Food
stuffs because It is notorious fact that European
family would live, and live we'll upon the foodstuf
waste that now prevails in hundreds of thousands o
American homes IT, through the elimination OF house
hold waste prices may be brought to their natura
level it will be much better TO effect it that way thai
to continue the waste and resort to arbitrary price
fixing through governmental agencies.