TaÌˆgliche Omaha tribuÌˆne. [volume] (Omaha, Nebr.) 1912-1926, 1917-11-27
Which Is Tho RIghI Policy?

In discussing the policy OF the Fed
eral government to place the conduct
Of the war upon a scientific business
basis the Illinois Staatszeitung in
its issue Of Nov. 22nd says editoriel-
" as follows:
more and more do business prin-
ciples enter into the conduct Of war.
Policy underlies business. That brings
us to the point at issue.
Which is the right policy?
The administration has adopted a
certain business policy connected with
the conduct of the war. 1t is that war
profits must be reduced or limited
and prices will be fixed so a to re-
duce profteering to a inimum. Hun
dreds Of articles have already felt the
effect Of that policy. Profits are cen
siderably less than they were a year
ago. The United States purchases
what it needs at lower prices than
the Allies paid last year and the
United States insists that the prices
paid by our government must also be
quoted TO the Allies for their wants.
War cannot be waged without huge
sums Of money. The United States is
now taxing heavily all excess war
profits. This policy produces a huge
revenue. 1t places the biggest part of
the burden Of paying for the war
upon the very persons and corpora
tons that make the largest profits
out of the war. The question hat is
now agitating the minds of many
publishers is: - VIII the profits UNI
der reduced prices be sufficient to
yield, by taxation, sufficient revenue
for war purposes, without resorting
to taxation Of the masses? When the
prices at which merchandise is sold,
are fixed by the government, the pro-
fits are necessarily limited and hence
the taxes will be lower, is the price
fixing policy the correct n to fol-
low further?
The opponents to that policy de-
nounce it. 1t is argued that COMPETE
ton only should fix the prices. The
government should not do so. If the
prices go sky high. then labor will
demand more wages, will get them.
will spend more even IL the prices on
I all commodities purchased by labor
are also higher. Those articles, too
being sold at higher prices will pro
duee higher wages and other expen,
ses wherever they are produced Of
handled. Thus it would be an end.
less chain, without hardship to any
one and with this decided advantage
If the corporations make more mo
ney, then the tax to be paid by then
will be larger. The tax rate could b.
heavily increased, even to the maxi
mum rate under which ALL war pro
fits would be taken by the govern
ment. Thus the amount Of none!
taken in by the government thru tax
alton, would be much larger than un
der the present policy Of price fixing
Moreover price fixing curbs enthu
siasm to enter business or start ney
ventures. Absence of it would re
veal enormous profits and these woul'
lure capital into expanding old an,
starting new enterprises, This woulr
bring on larger production, And it
production that we now need.
But the latter plan would brinl
on over expansion and a high leve
la decidedly unnatural and danger
Gus condition. We must look to tn
future, when peace is an accomplish
ed fact. We should then be compelle
to drop from our high level to
normal plane. Labor's high wage
would have to come down and a
! prices of commodities would tumbl
rapidly. That might bring on a PAM
It would surely result in inanci'
, disturbances. The present plan of fl
/, ing prices seems to take better can
! Of future possibilities. Moreover II
, people are the present gamers. If Il
price fixing plan does not produe
! enough revenue, then the people al
better off to pay more war taxes,
this time, at low prices, than to pa
less taxes now and to submit aft
: the war to a sudden readiustment
present conditions with lower price
lower wages and less profits. 1t wou
3 seem that the administrators pre-
ent plan Of price fixing is the bett'
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