The Richmond Virginian. (Richmond, Va.) 1910-1920, 1917-09-02

In the field of investment as well.
this, in turn, reacts against the exten-
sions Of existing industries or the de-
velopment of new lines of enterprise.
Adding 10 this undesirable trend is
the eff eet of tire lei Observation-Disclosures
In congress. The increases in super
ia xes over snd above normal taxation,
which are growing in fayor among
congressman, is now serving as an ef-
fectual deterrent to investments In
business enterprises OF any sort. More
over, business that was formerly active
is holding back. The penalty on ex-
pansion is too great 10 be risked. Price
fixing. present or prospective. renders
the outlook uncertain. and the incen-
tive to risk the chanc of proht is
checked by the knowledge that success
will Immediately bring the business
man within the clutch Of c~onAscatory
legislation.
h situation lie akin to those op-
e~rative in China or Turkey. wTIere sue
cess marks the venturer as the legttt-
mate prey of those governments Not
to succeed in business In either OF the
governments mentioned is the only sure
| road TO safety. While the American
business man is loath to admit the
presence Of the same principles in force
in America. he scents the trend.
BY a strange phase Of the situation,
the government Ia also placed in the
attitude Of aiding to bring these con
dEtions about to a still further degree
With business initiative. called upon
TO meet The increasingly growing de-
mands Of the great war" and at the
same time threatened with being PEN
alfred If IL shows evidence OF expansion
or prosperity. there ts the alternative
OF investing IN government bonds, the
same to he xemp from taxation.
A the Arst cell capital from all
sourees-and fl Is capital. whether pos
sessed by the rich or the poor-has-
tened 10 invest from patriotic motives
/ Thus the So. o. G.n6o.o 600 Liberty Loan"
was not only raised in record time, but
was vastly oversubscribed.
Shortly there will be a call for q
inilar loan. probably amounting to
I 81. o0o. ooo, 900. There Is no doubt that
it will be promptly met. Under exist
ing conditions the motives may be
somewhat mixed this time. With In
vestmsnts in business enterprises made
unpopular BY the threat against war
+ prcfts' and the expectation Of small
/ profits, or no profits at all. as a resalt
Of arbitrary p~rice-hxirg. why should
not the war bonds be over-suoscrihed
AGAIN. The question OF where the
government will come cut in the pro.
cess ts not settled as Il should be
however.
In the or}nion Of the best bushes.
judgment Of ire land. there wilt have
- he a chance, AS til regards the cit
@uation. a little Of the aitruism viii
have 10 he manifested at home. a
striking instance Of doing things bet
ter has been presented by Great Bri-
tain 1t liz admitted that the ocear
freight rates charged hv British ship,
ping have been ~exorbftsnt. But Great
Britain has stepped tn and taken Sc
percent or more of the s@calted "tx.
cess profits Of that trade as mads
possible by the war. The allies have
uttered little or no complaint The
main cry OF anguish has come from
Germany which notes that despite ths
submarine warfare British shipplng
is still strong and prosperous. and
that the nation that protects Il con.
tsHUes stT1rx also,
The sar7e methods might we'll es
adopted here. by permitting large
profits the government would not only
stimulate production. keep labor &C.
tive and contented az 8 good WAC
and strengthen the nation. but woult
also establish "a basis from
which ~ draw its war revenues fol
an Indefinite Length Of time, In nj
respect does the present method OF
procedure promise 10 accomplish these
results.
II CoAL-FTxING SCHEME