French Broad hustler. [volume] (Hendersonville, N.C.) 1916-1919, 1918-07-25
mo Extortion to Be Tolerated, but
Liberal Disposition Toward
Business Needed.
iShrinkage of Values Would Cur
tail Capacity to Provide
SineWS of War.
Reconstruction Of Men, con0criPtion ct
Money" Analysed.
BY OTTO a. KAHN.

cause a certain portion Of the young
manhood Of the nation has been con-
,Ocripted, therefore money must also be
ieonscripted. Why, that Is the very
thing the government has been doing.
Il has conscripted a portions rela-
lively small portion-of the men Of the
nation. It has conscripted q portion
large portion Of the incomes Of the
nation. Capital and business pay more
than four-ffths Of our total war taxa
tion directly and a large share Of the
remaining fifth indirectly.
II the government went too far In
ieo~nscripting men the country would be
crippled. II 1t went too far in con-
Wcripting incomes and earnings the
country would likewise be crippled
Results Of conserIption Of Capital
I would ask those who would go
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 1t?
It is true that a few years ago q
capital levy was made in Germany, but
the percentage of that levy was so
small as to actually amount to no more
than an additional income tax and that
at a time when the regular income tax
in Germany vas very moderate as
measured by the present standards of
income taxation.
Only a trifing fraction Of a mans
property is held in cash. If they con-
script a certain percentage of his pos
sessions in stocks and bonds, what
would the government do with them?
Keep them2 That would not answer
its purpose, because the government
wants cash, not securities.
Sell them? Who is to buy them when
e one's funds would be depleted?
II they conscript a certain percent
age Of a mans real estate or mine or
farm or factory, how is that to be ex.
pressed and converted into cash?
Are conscripted assets to be used as
q basis for the issue Of Federal Re-
serve bank notes? That would mean
gross imitation, with all its attendant
evils, dangers and receptions.
Would they repudiate a percentage
Of the national debt? Reputation is
no less dishonorable in a people than
I'm an individual, and the penalty for
failure to respect the sanctity Of obli-
cations is no different
%&--S - 49,
The Thrifty Would Be PenaIized.
The fact is that the government
would gain nothing in the process OF
capital CONSUMPTION and the country
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 'construc
tive effort, resulting in the needful and
fructifytng accumulation Of capital
would be arrested and lastingly dis
cOuraged:
can understand the Grade notion Of
the man who would divide all posses
sions equally. There would be mighty
little coming to any III by such distri
button, and it is, of course, an utterly
impossible thing to do, but 1t is an I'm
.derstandable notion. But. by the con
Ascation OF capital for government us
neither the government nor any indi
vidual would be benefited.
A vigorously progressive income tai
Is both economically and social.
sound. A capital tax is wholly I'm
g. sound and economically destructive.
It may nevertheless become neces
sary in the case Of some Of the bellfgeF
ent countries to resort to this expedi
ent, but I can conceive Of no situation
likely tt arise which would make /
necessary or advisable in this country
More thar ever would such a tax b
harmful in times of wal and post-bel
lum reconstruction, when beyond almos
all other things it is essential to stint
late production and promote thrift, an
when everything which tends to hav
the opposite effect should be. rlgorousl
! rejected as detrimental to the nation
strength and Well-being.
There f. an astonishing lot OF hax
thinking on the subject Of the uses q
capital in the hands of its owners