davidaulloa/AmericanStories huggingface dataset:
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-24
Patriots Among Rich
Will Pay Willingly

1t must be borne in mind that the pro-
posal to raise large part of the war rev.
enue from taxes is for the purpose of rails
ing money and not for the purpose of at
lacking the rich. If the heavy taxes are
laid on large incomes merely as an express
sion of our hatred of large incomes, it
probably would provide some resentment
and resistance. Nothing is so hateful as
hatred, and nothing is so calculated to be-
get mean and unworthy motives in others
as mean and unworthy motives in our
selves. Let it be clearly understood that
our proposal to tax heavily is a financial
measure made necessary by the war, and
not bludgeon with which to strike a rich
man, and there is not much doubt that it
will receive general support among rich
men themselves. If men were conscripted
into the army as a means of venting spite
against them, it would, of course, provoke
resentment. But if they are conscripted
as a matter of obvious necessity, not much
resentment is likely to develop. The same
principle will apply to the heavy taxation
of incomes.
The third proposition is really delicious.
The money which is raised by taxation will
not have to be raised by loans. The only
possible way in which heavy taxes can in
terfere with the placing of enormous loans
is by making the enormous loans unneces-
sary. Even with the proposed tax, loans
will be necessary, but the less there is
raised by taxation obviously there must
be that much more raised by loans. Fur
thermore, as already stated, the money
which is raised by loans is as definitely
drawn from investment as is the money
which is raised by taxation. Every dollar
which business man puts into a Liberty
Bond must necessarily be withdrawn
either from his private expenditures or
from his business.
There is theory, however, to the effect
that we may all buy our Liberty Bonds on
credit IF that were true we individuals
and the United States government would
be exchanging promises to pay. That
would doubtless make us both rich. If so,
it is a great discovery in the science of
finance.
The fourth proposition is calculated to
create at least as much popular resent
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-24
"Slackers Method Shifts Burden to
Veterans, Says I. N. Carver

portion of the wars expenses as we 60
along, but that the government should Dor
row the money in order TO avoid disturb
ing US who stay at home, and in order that
those young fellows who are going to the
front may help pay for the war after they
return home-if they do return home. The
patriot's system is the proposal that we
make strenuous efforts to pay as large a
proportion as possible Of the wars ex-
penses as we go along in order that we
who stay at home may bear at least small
fraction Of the burden which will be borne
by those who 90 to the front, and not ask
those who return home, having borne the
burden of the front, to then turn IN and
help pay the money back to US which we
loaned to the government.
Attempts have been made to becloud the
issue by saying that the present generation
should not be called upon to bear the whole
burden of the war, but that future genera
tons should be called upon to bear their
share. The fact is, however, that the bur-
dens of a war are not necessarily borne
bv generations or classes, but by indivtd-
uals. They who do not go to the front or
render direct service to the government or
give members of their immediate families
TO that service will bear no burden what
soever unless they help pay for the war.
The laboring men who serve in the army
and navy bear tremendous burden. They
who stav at home get somewhat better
wages, on the average, and live somewhat
better than in time of peace. They bear
no burden at all, unless they bear it as in
dividuals. The business man who goes to
the front bears burden. He who stays
at home has chance to prosper unusually
through war profits.
Many a highly respected family is to-day
living in affluence on fortunes which were
accumulated during the Civil War while
the men who, in time of peace, would have
been their competitors were serving as SOL
diers. If this war is carried through with
out heavy taxation the same thing will
happen again. Multitudes of men OF this
present generation will carry no burden
whatsoever; others will actually prosper
and grow rich out of the war. 1t is not
quite ingenious, therefore, to say that this
present generation" should not be called
upon to bear the whole burden. The really
important thing is to see to it that oil of
this present generation shall cary some
burden. If we could distribute the bur
dens equally that would be an excellent
thing to do; but that cannot possibly be
done, try as we may.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-24
War Insists on
Cash Payments

Another basic and indisputable fact
which we should bear in mind is that the
expenses of the war, measured IN produc-
tive power and goods, will actually be paid
as we go along, whatever our financial
policy. Soldiers cannot use guns and am
munition. nor consume rations, which are
to be produced in the future. Everything
tfat is actually used in this war VIII be
produced before it is used. In terms OF
real income. as distinct from money in
come, the war will actually De supported
bv current income-that is, out of the
products Of current industry. The only
question before US is, where and how shall
the government get the money with which
to pay for these things? 1t can raise 1t
largely by taxation or largely by loans; IN
any case, it will have to use combina-
ton of both methods.
The sounder theory is that it should
raise as much as possible by taxation and
borrow only as a supplementary measure.
II will take some time to get the taxing
machinery in operation, and the money
which it puts into the Treasury comes IN
gradually. At the beginning Of a war
large initial sum must be had at once. The
only possible way 20 raise that initial sum
is by borrowing. The less sound theory
is that the war should be financed as FAR
as possible by loans, that taxes should be
increased only in order to pay the neces-
sary interest on these loans and such other
necessary expenses as it seems inexpedient
to pay out of the proceeds of the loans.
Therefore, the writer insists that the
real question, stripped of all verbiage and
claptrap, is simply this: Shall we who
stay at home pay for this war as far as
possible as we 20 along or shall we ask
the government to borrow the money IN or
der that we be not too much disturbed or
disarranged, and that they who so to the
front and do the fighting may help to pay
for it after they return home--if they do
return home?
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-24
Britain's Blunder
A Lesson to Us

1t is further argued in behalf Of the
policy of borrowing instead of taxing that
during the first year Of the war Great
Britain increased taxes only slightly. That
is true enough; but the best financiers and
economists of Great Britain are now all
agreed that that was one OF their great
blunders. The slogan business as usual
was one of the greatest stupidites of a
period which was full of confusion and
stupidities. The English people, however,
have emerged from that state and have
begun to see things more clearly. 1t is TO
be hoped that we shall not have TO 80
through the same stage Of confusion and
stupidity.
One of the naive objections TO the policy
of paying a large proportion Of the ex-
penses of the war by taxes is that when
expenditures approach the gigantic sums
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-24
Whole Nation Must Save to Win
War Declares Thomas w. Lamont

Citations had been established and affiliated
with the central body. the National War
Savings Committee.
Ia the twenty-nine months between the
outbreak Of war and the end of December,
1916. the small investor had lent to the
British government in one form or another
s650,O00.000. In January and February,
1917. over 10000 new associations were
formed, and in these two months the total
subscriptions of the small investor for
the Victory war loan were at least $780,
100000
There are now in England and Wales
over 100000 members upon the books of
the war savings associations, and 6.00O,-
600 more individuals purchasing through
the postoflices. Although this great army
of small investors in government loans has
been created during the last year, savings
bank deposits increased almost $50, 900 900
in 1916. Such an increase, in the face of
heavy investment in government loans.
shows the wonderful results TO which this
system of thrift has led in Great Britain.
America should unquestionably take adj
vantage of England's pioneer work and eX-
perience in this field. In no other way can
the people realize that individual c,o-...lv.
thrift and saving Of pennies, collected in
units of dollars and invested i'm loans TO
the government, will shorten and help win
tie war.
No less important has been the campaign
to effect saving in every way. Great
Britain has been faced with the same prob
lem which we shall have to face. Count
less men have been taken out Of produc-
tive work and have been made consumers,
A man at the front consumes more in the
way of food than he would at home. At
the same time, there are less men who are
producing food.
Now, unless those individuals. who are
consuming more than they need, eliminate
the waste, the result will be thai sosnc
, others will have to go without a part or
all of the things absolutely necessary TO
sustain life and health. A bushel of wheat
has no more nourishment in il at SO than
at 81, and the man who has a fairly fixed
income either must buy one-third less
wheat or else give up something else.
II once we realize what others are giving
up it is no great sacrifice TO arrange our
households 80 that maid can take the
place of a man and release the man for
work which woman cannot do to eat
more simply, so that less wastage occurs.
The sacrifices that we can make along
these lines are small compared with the
sacrifice of those who are offering their
lives to the country. Yet, in their way
they are just as essential to the good Of
the cause. To DO without should be mat
ter Of pride, a subject for praise.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-24

cate incomes, there will be no surplus avail
able TO invest in the new loans.
The only way people could invest in the
new loans then would be to sell their other
securities, but as potential buyers of these
securities would themselves lack surplus,
the result would be great fall in values
involving an economic loss and dsarrange-
ment Of all industry, with unacceptable reac-
tons upon labor.
Resort to credit by governments, Pro-
fessor Seligman finds, is essentially mod
ern phenomenon.
Formerly governments prepared for war
demands by accumulating a war chest IN
times of peace. Germany had such war
ches. in 1914. Modern governments, how
ever. and especially democratic governments,
have abandoned reliance on war chests
much as modern business has come to rely
more and more on productive credit as
basis for its widening scope.
In peace time justification for government
borrowing is analogous TO the justification
for private borrowing. To issue bonds for
current expenditure is clearly unJustifable
In peace times, therefore. loans are
legitimate for extraordinary capital expendi-
lures. while taxes must be relied upon for
current expenses and recurring capital out
lays.
In war time. however all expenditures may
be considered extraordinary expenditures.
No one finds fault in the legislation
which proposes TO graduate the scale OF the
income tax 80 that the man with very
large surplus shall not only be paying
larger amount OF the war expenses. but shall
be taxed at q higher percentage rate.
yindictivc Destructiveness
II does not, however. follow that the sur
plus must in some cases be eonfiseated. In
deed. the conscription-of-wealth argument
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-24

nrcnt as the excessive taxation OF con-
sumption. The sources for the support of
education and philanthropic enterprises
will be dried up quite as effectively by the
Liberty Loan as by taxation. If every
body puts all his surplus money into Lib
erty bonds, he cannot, of course, put it
into the support of educational and phian-
thropic enterprises. Why does not some
advocate of the theory of slacker's finance
raise the cry of alarm against the Liberty
Loan and point out that if people are
urged to invest Excessively" in Liberty
bonds they may not have enough left with
which to support educational and phi
lanthropc institutions?
Of course, the whole argument ignores
the fact that we may all cut down our
consumption Of Injuries and superhuities
and thus both buy Liberty bonds and pay
out taxes and still have something left
with which to support educational and phi
lanthropic enterprises. This cutting down
of our consumption, however, will throw
people out of work in the industries which
produce Injuries and superfiuities. This
cannot be great calamity so long as the
government takes the same money with
which we would have employed them and
offers it as an inducement to the produc
ton of military and naval supplies. This
will call for additional help in these indus
tries. This is really all that We are called
upon to do when we are asked to subscribe
to Liberty Loan or to pay taxes. We are
simply asked to stop buying some things
that we have been buying and to turn the
money over to the government in one form
or another in order that the government
NAV spend it on the business Of war.
There is no way known to mortal men
whereby a government may get men and
materials for war except by supporting
the men who go to war and paying for the
support of those who 90 into the industries
which produce war supplies.
The fifth proposition can mean nothing
more than that if we tax ourselves to the
limit at the start we cannot later on in
crease taxes by as large a percentage as
we could if we taxed ourselves lightly at
the start. True enough, but it would not
be necessary.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-24
Many Objections
To Excessive" Taxes

The laws involved are fairly clear and
are essentially as they have been already
stated in this article. 1t is necessary, how
ever, to dispose of certain fallacieS that
are being published on the other side.
A recent article by Professor Seligman
in "The New York Times" which has
become the chief exponent Of that side of
the question, raises five objections to Sec
rotary McAdoo's proposal to raise at least
80 per cent of the wars expenses by taxa
ton rather than by loans. They are: CD
Excessive taxation upon consumption will
cause popular resentment" (2) "Exces-
sive taxes on industry will disarrange
business, damp enthusiasm and restrict the
spirit Of enterprise at the very time when
the opposite is needed" (3) Excessive
taxes on incomes will deplete the surplus
available for investments and interfere
with the placing Of the enormous loans
which will be necessary in any event" t4)
Excessive taxes on wealth will cause a
serious dimunition Of the incomes which
are at present largely drawn upon for the
support of educational and philanthropic
enterprises" 90 Excessive taxation at
the outset Of the war will reduce the elias
ticitv available for the increasing demands
that are soon to come"
In all these cases there is the unwar-
ranted assumption that the proposed taxes
are excessive. AS to the first Of these OBJ
iections, it is political rather than eco
non1ic. Such tax as is proposed Will
cause popular resentment only on condi-
ton that the people are crudely ignorant
or unpatriotic-that they are ignorant
enough to imagine that the expenses OF
the war can be paid out of nothing or I'M
patriotic enough to be unwilling TO bear
the necessary burdens of the war. Even
though it should cause popular resentment
il would not affect in one way or another
the economic wisdom Of such policy. IL
is one thing to say that policy is eco
nomically sound. Il is, Of course, quite a
different thing to say the people kno"
enough about economies TO understand It's
soundness. The writer has, however, a
better opinion Of the American public than
10 believe that there would be any consid-
cradle popular resentment resulting from
the taxes proposed.
AS 20 the second proposition, it is only
necessary to point out that a great war,
absorbing several millions Of men Of pro-
ductiye age either in the actual fighting
or in the production Of supplies for those
who DO the fighting, cannot possibly be
carried on without good deal Of disar-
rangcment Of business. Moreover, there
will be the same Encouragement Of bust
ness whether we turn our money over 70
the government voluntarily, and thus vol
unfairly cut down our ability TO purchase
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-24
Business as Usual
Now an Absurdity

OF course we shah be charged with dis
turbing business all along the line. Yet it
is absurd to talk Of business going on as
usual when we have ten million men sub
ject to draft for the front, subject to with
drawsl from their customary pursuits and
turned into consumers. Already the
maxim Business as Usual has become an
absurdty. Certain industries have been
swollen far beyond their customary activi-
ties through the manufacture Of munitions
and materials for our allies. All the work
ers in such plants have received and have
spent more money. The country has had
this stimulus and has reaped the profits
for nearly three years.
Now we must look on the other side Of
the picture as well. Business will continue
a high pressure. but it will be business d-
rected toward one end That end is War.
Plants which do not or can not adapt them
selves TO the manufacture Of things which
are needed are bound to suffer Their
worknren will have plenty of opportunity
for employment, for the experience of our
allies has shown that it is a shortage Of
labor and not surplus of labor, that has
constantly to be met.
If / were asked TO sum up the advan-
tages in our adopting some such plan as
has been found necessary in England,
should mention three points: First, by con-
certed saving those things we have to buy
will cost US less than they otherwise would,
IN competition with the government, which
has first call on all products it needs; Sec
ond, an enormous reservoir of collected
savings will be put at the disposal of the
government, which has to have the money
and should get it from each one Of US in
proportion TO his means; third, at the end
Of the war those who have saved and in
vested, each according to his efforts, will
have laid by share in the best security
the world offers; an asset bound to serve
the holder for many years to come.
Finally, most important consideration
in the participation by all the people in
this habit of saving and of investing these
savings in securities, lies in the fact that
the whole people are thus educated to the
purchase and ownership of securities.
thereby giving hope that our great indus
tries in tic future may be even more dealo-
cratized than today; that the number Of
investors in the securities of our railroads.
our public utilities and our industries gen.
orally will be so increased that no man,
woman or child in the country will be with
out direct and vital interest in our govern
mental and business institutions.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-24

"HE winning Of the war depends, to
al extraordinary degree, upon
whether the country goes to worh
at once 10 handle effectively the problem
of wartime saving.
We in America must determine whether,
during the coming months and years of the
conflict, our government is destined 10 have
the whole hearted and enthusiastic support
of the nation. This question regard as
the most pressing one before us to-day You
here are in a position TO take the initiative
in a movement to establish thrift and saw
irg upon n scientific basis in New YORK
State. lust as it has been established III
Great Britain. And the whole nation must
follow suit. if we are to render real sup
port to the government in its prosecution
of the war.
The subscription books Of the $1,000
5000 Liberty Loan were CLOSED week
ago. The figures indicating the total num-
her of subscribers are not yet available,
but we know that they have been nothing
like as numerous as they must be IN the
future. We are well aware that the Lab
erty Loan is only the first of the issues
which the government must bring out IN
order to meet our increasing war eXpen-
ditures. And if we are to float successfully
these successive issues, all the people must
invest on heavy scale, just as they have
in Great Britain and France. The people
If England subscribed to the Victory Loan
last January about 40 per cent OF their
combined annual income.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-24
SOME MUST FIGHT; SHALL NOT ALL THE OTHERS PAY?
What the Slackers' Method Means

THE of all this Shall who
home for this possible along, shall we ask the
borrow much disturbed dnaranged
that they who the and do the fighting help after they
home-f d. retunho T "
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-24

0UGHT war to be financed by loans
or by taxes? Which system is
right? Is either one all right or
all wrong? These are important ques-
tons, and in Golfers" they are answered
in this manner:
While the chief portion of expenditure
must at the outset be betrayed from loans,
a far greater proportion than has been GUS
tomary in the past ought to be raised by
taxes. In order to prevent the creation OF
n perpetual debt. the loans of the govern
ment ought to be thrown into the form Of
comparatively short-time bonds, or, better
still. Of serial bonds, TO be paid off annually
within a period of ten or, at the outside,
twenty years. This means that the taxes
must be high enough TO provide not only for
the interest on all the new loans, but also
for the so-called amortization quota-that is,
a sum in addition which will provide for the
retirement of a part Of the debt every year
or which will be paid into sinking fund, so
that at the expiration OF the loan the entire
amount can be paid of taxation pro-
rrarnmo far higher than has hitherto been
thought necessary.
Killing the Golden Goose
The danger of overtaxation, Professor
Edwin r. A. Seligman further maintains,
is a very acute one.
1t is Of the utmost possible importance TO
keep the social production during the war at
The top notch Heavy taxes on income and
var profts are indeed legitimate, but II the
taxes imposed on industry are so high as TO
weaken the spirit Of enterprise or to cur
tail production. the country will be killing
the Goose that lays the golden eggs OF COM
,,crce and credit. And, since large share,
O., all events. Of the war expenditure must
come from loans. we must not sap the power
Of the community to invest IN these loans
II taxes are so high as virtually 70 conh'-
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-24

NUGHT war to be financed by loans
or by taxes? Which system is
right? Is either one all right or
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-24
Killing the Golden Goose

The danger of overtaxation, Professor
Edwin r. A. Seligman further maintains
is a very acute one.
New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-06-24

-HE winning of the war depends. to
al extraordinary degree, upon