New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-11-03
Financing of War
Divides Political
Scientists Opinion
Meeting Argues Taxation,
u. S. Bonds and
Industries

PHILADELPHIA, Nov. 2.--The qucs.
,ior Of whether American industries
should be recognized under govern.
ment auspices 20 concentrate their full
energy upon the production Of war
material, or should heavy taxes be lew
led to meet the costs OF the war. under
the existing system Of Industrial indi.
vidualisn,. featured the sessions here
to-day Of the war finance meetin. Of
the American Academy OF Political and
Social Science. There vas a general
division OF opinion.
Representative John J. Fitzgerald,
chairman of the House Appropriations
Committee, predicted a period OF un-
examplcd taxation, which, he SAID.
would be necessary rather than leans
TO meet the costs OF war.
Mortimer L. SchiE. OF New York. pre-.
senting the conservative bankers
view" said there rust be no hamperfng
OF enterprise by unwise or unjust tax
alton.
"The public must not be discouraged
and values must not be jeopardissd by
an unfriendly attitude OF the govern
ment toward business" he said. Gap
ital as well IS labor must be permitted
20 earn a fair return. Issues OF gov
eminent bonds must not be too fire.
quent and must not exceed the aosorp-
ton power of the people"
Mr. Schih said the government must
monopolize the investment market, "
necessary. The government, he added,
is entitled to have its money require
ments supplied before, and II need bo
70 the exclusion OF, private enterprises
OF even Of states and Municipalities.
"Last, and most important, the peo-
PIE must be taught 20 save, and all un-
necessary expenditures must be avoid
ed. Thrift snd economy must prevail.
DR.. II. c. Adams, Of the University
of Michigan, and Frank A. Vsnderlip,
Of New York, urged the need OF new.
socialzed era Of industry. in which tao
vast energies Of the nation would bs
directed primarily TO the purposes OF
the war, without the waste o. eompet-
ton.
In summarizing the trend OF tae
theory that forecasts new standards IN
American life. Mr.. Vanderlip said:
NO man, no matter how great his
oretentions, can be considered patriotic
when he employs labor az non-esseu-
tials 70 sn extent that makes him a
competitor Of the government In tho
present crisis. Business must be re-
organised, with the immense needs o.
the nation as its first aim and thought
DR.. Adams said that a better orgsni-
zation of industry, the elimination OF
"b.sine,s as usual" and the substitu-
.;or of a huSiuesa programme which
will consider war needs first would sim
plify the tasks OF the national admin
istrstion.
Edwin K. A. Seligmsn. of Columbia
University. said government loans ar
Indispensable 10 sound war nnanees ouI
to attempt 70 finance war exclusively
through loans is short-sighted.
And, he added, to attempt to nnanes
a war exclusively through TAXATION "
suicidal. War taxes should be isrye
and immediate. but should never Dc
stretched beyond the point where me
begin 20 lessen the social output 70
hamper the transfer OF pre-wsr 20 wa
production, or TO press unduiy on oe-
sirable consumption. 4.
"War taxes must pc high enough 70
assure a solid foundation for the osn'
and 10 insure a rapid payment OF the
debt within a relatively short time
The fundamental thing IN our Wa
finance. according to RoV q. Blskey, OF
.he University Of Minnesota, Is the re-
duction of consumption. This Is even
more important" he said, than In.
creased production. Economies should
be forced By governmental suspension
of unnecessary production