The Washington herald., 1917-06-04
Let Each Dollar IN Each Billion Do Its
Fun Work.

There are radical but honest differences
between the Senate Committee on Finance
and the House Of Representatives over
the revenue bin. AZ we are going into
the war to win. there should be no
divided counsels. cross-purposes or half
leavened financial methods. II we start
right we shall end right; because. as Mr..
Asquith said at the outbreak Of the war,
The side that has the last billion viii
win" II Is Just as essential to conserve
dollars as it Is to conserve food. Let US
reason together.
Don't overtdr industry.
In the first place. you cannot take all
the surplus money Of the people for taxes
and at the same time expect them to buy
government bonds ad lib. Money that
goes to make up the great incomes OF
this country In large measure goes back
into investment-into the plants that
produced the income, into development
Of new plants, into developing the coun-
try so that its maximum of productive
ness can be sustained for fighting the
war.
The retroactive idea has gone glimmer-
ing, and in its stead comes the excessive
tax Of about Is per cent on large incomes.
Well, let It be assumed that the large
income pays the Is per cent tax, which
Its owner is willing to pay, for wealthy
men are not disposed to be narrow in this
great war. There is left So per cent, and
what shall he done with that? The own
er wants to buy liberty bonds and doubt
less has done so. He must also look
after the development Of his business and
that takes a large sum. Shall he sell
other securities in order to get that
money to develop shipyards for Mr.. Den
mans commission and steel plants for
the railroads at home and abroad and
for ships, plants for munitions, plants for
clothing, plants for weaving, plants tor
motor trucks and plants for boots and
saddles?
II the tax is put on profits In manufac-
turing what results? The struggling con-
Germ that has yet attained no profits
becomes discouraged and goes out Of busi-
ness. The successful concern profits
through losing small competitors, but
the incentive to expand is not increased
by the imposition Of this tax upon en-
terprise. In each case the working power
Of the dollar has been curtailed.
Do tar lururies to the limit.
Tax incomes fairly but leave something
for the bond sellers to get. Tax luxuries
every cent they can bear, but do not
tax the luxury in the hands of the me-
chanic, while 1t is being produced. Tax
it in the hands of the owner. There is
no tax so easy OF collection, no tax so
worthy Tax the automobile in the hands
of the owner-that is a luxury. Do not
tax the motor truck, that is an agency
Of productiveness.
There was no internal taxation in the
early days of the civil war Up to the
close Of the fiscal year 1865, the total
amount collected from internal taxation
was but $3.50, ,0OOooo But by that time, un-
der a protective tariff something had been
built up in this country worth taxing.
The effect of this freedom from taxation
during the first part Of the war is thus
described by Prof. Albert s. Bolles. in
his Financial History Of the United
States:
The war proved a wonderful fer
tiliZer to American manufactures and
they spread like a banyan tree
The principal industries struck deeply
and securely into the soil.
The taxation in the civil war did not
begin until the country could stand II.
Luxuries bore the burden in paying off
the war debt. The heavy imports COL
lected under the tariff act of March 3,
1865. brought into the Treasury in three
years $SS3,0Oo.ooO. The internal taxes on
luxuries were equally high Industry
bore its share, but not until it was able
to do 50. II Secretary Chase and Con-
gress had tried to fight the war on
basis Of 50 per cent bonds and 50 per cent
taxes, both bond issues and taxation
would have failed and Lee would have
taken Washington.
Let US tax luxuries, stimulate industry,
encourage production and make each
dollar do a dollars work