Palisadian. [volume] (Cliffside Park, N.J.) 1906-current, 1918-09-07
No Extortion to Be Tolerated, but
Liberal Disposition Toward
Business Needed.
Shrinkage of Values Would Cur.
tail Capacity to Provide
SineWS of War.
"censcriptlon Of Men, conscrlptien n
Money" Analysed.
Dy OTTO n. KAHN.


cause 4 certain portion of the young
manhood Of the nation has been con-
scripted, therefore money must also be
conscripted. Why, that Is the very
thing the government has been doing.
1t has conscripted, porti0n--a rela-
lively small portion-of the men of the
nation. 1t has conscripted q portion
. large portion of the incomes OF the
nation. 9 Capital and business pay more
than four.ifths Of our total war taxa
ton directly and large share Of the
remaining fifth indirectly.
II the government went too far in
conscripting men the country would be
crippled. If 1t went too far in con-
scripting incomes and earnings the
country would likewise be crippled.
Results Of conseription Of Capital.
I would ask those who would %
further and conscript not only incomes.
but capital, to answer the riddle, not
only in what equitable and practicable
manner they would do it. but what the
nation would gain by it2
1t il true, that, q few years ago Q
capital levy was made In Germany, but
the percentage Of that levy was "a
small as to actually amount to NO more
than an additional income tax and that
at time when the regular income tai
in Germany was very moderate a.
measured by the present standards sf
income taxation.
Only trifling fraction Of mans
property il held In cash. II they con.
script certain percentage of his pos
sessions in. stocks and bonds, what
would the government do with them2
Keep them1 That would not snswer
Its purpose, because the goVSrnHent
wants cash, not securities.
Sell themf Who is to buy them whsa
every ones funds would be depletedt
If they conscript certain pereent-
age of mans real estate or mine or
farm or factory, how Is that to be ex'
pressed and converted into cashf
Are conscripted assets to be used -
basis for the issue Of Federal Re-
serve bank notes? That would mean
gross imitation, with all its attendant
evils, dangers and deceptions.
Would they repudiate q percentage
of the national debit Reputation IL
no less dishonorabie in a people than
in an individual, and the penalty tor
failure to respect the sanctity of obli-
cations IL no different.
The Thrifty Would Be. Renallzed.
The fact is that the government
would gain nothing In the process OF
capital consumption and the sDuntry
would be thrown into chaos for the
time being. The man who has saved
would be penalized, he who has wasted
would be favored. Thrift and construe-
tive effort, resulting in the needful and
fructifying accumulation Of capital,
would be arrested and lastingly dis
couraged. a.
can understand the crude notion Of
the man who would divide all posseS-
sions equally. There would be mighty
little coming to any one by such distri-
button, and it is, Of course, an utterly
impossible thing to do, but It IL an IN
derstandable notion. But by the con-
fiscation. Of capital for government pse
neither the government nor any indi-
vidual would be benefited.
Avigorously progressive income tax
Is both economically and socially
sound. A capital tax IL wholly unsound
and economically destructive.
1t may nevertheless become neces-
sary in the case Of some of the belliser-
ent countries to resort to this expedi-
ent, but 1 can conceive Of no situation
likely to arise which would make II
necessary or advisable In this country.
More than ever would such a tax be
harmful In times Of war and postbel'
lum reconstruction, when beyond a.
most all other things 1t Ia essential u
stimulate production and promots
thrift, and when everything which tsndi
to have the opposite effect should b
vigorously rejected as detrimental to
the nations strength and wel1-beinE.
There is an astonishing lot Of haxy
thinking on the subject Of the usea q
sapital In the hands q "a Qwners !"