Evening journal., 1918-09-28
KAHN Warns
OF PATERNALISM
Necessary at Present, He
Tells Bankers, but Must
Not Take Root
SAYS FARMERS ARE
FAVORED AS CLASS


New York declared that the picture
" a bueaucratlc paternalism fastening
Is shackles upon a nation which went
20 war TO preserve liberty Is not a
'9nciful one" in speech before the
convention OF the American Bankers
Association yesterday.
Through the accident OF war pater-
1atism at present rules supreme" he
said. sThat Is inevitable In war time.
The one and supreme task before the
nation Is 10 win the war. No personal
Or business consideration must be per-
mitied 10 stand in the way OF the
necessities OF that task.
"OfllcialdOm Is entrcnched in power
beyond what IL dared TO hope for in its
londcst dreams. And power is sweet.
Ofiicialdom and those who feed at its
table will not easily give II up.
1t would be a grievOus afflictiOn II
under the emotional stress and turmoil
produced by war our people were to
tolerate doctrines TO take a footing on
our soil whlcn their sober wisdom here
tofOre has scOrnfully rejected as will-O'-
the wisps and and un-American.
"The government, in the emergency
)f the war, has assumed the operation
Of the railroads, as II has assumed,
probably unwisely and unnecessarily,
the operation OF the telephone and tel
sgraph lines. The system OF pooling
for which many Of the railroads had in
vain endeayored for years to obtain
legal sanction was promptly adopted
with the natural result OF greater sim
plicity and directness OF service and
Of considerable savings. The whole
theory under which intelligent, effect
I've and systematic cooperation be-
tween the different railways had been
made impossible formerly was thrown
into the scrap heap" Mr. Kahn praised
McAdOO's handling OF the situation.
"Of our total national income, esti-
mated at, say, siOOOO,OOO,OOO annually"
Mr.. Kahn continued, mot more than
S2.OOOOOO.OOO goes TO those with in
comes OF, say, $4,000 and more. Yet
not only is our taxation Of those with
low and moderate incomes at a far
smaller rate than II is in England, but
we decline to employ one Of the most
effective means to compel savings, con-
sumption and similar taxes such as
every other belligerent nation without
exception has imposed.
ners' cOntentment and well being is TO /
be cordially welcomed. Yet, we cannot |
help wondering whether it has occurred |
to those who are so rigorous that no /
business profit shall escape the tax /
gatherer TO ponder the fact that. accord /
ing TO the latest detailed income tax /
returns, the farmer is but small con- i
tribulor OF twenty-five selected occu- /
pations he pays the least
Having in past loans given the lie
TO the sners and taunts OF our adver-
sarles that we are a mere nation OF |
money makers interested only in prof
its" belief was expressed by Secretary |
Daniels in an address before the con- /
vent,on that the American people in /
the fourth Liberty Loan will demon
strate again that Americans have left
the valley Of money getting and have
reached the heights OF money Siving"
In the light Of the three previous
loans. Mr.. Daniels told the bankers. the
nation knows the financial Interests
need no arOnsing.
Even when the making OF money
seemed our cosuming passion we mis-
Judged ourselves" said Secretary Dan
iels. "Our possl0n was not money even
when we gave most OF our time 10 gel
ting il and hoardins it, Our real pas
sion was achievement and accomplish
ment. Dollars represented success and
aud national development. And
underneath this ambition for power
there was something deeper and strong
er in our national character. Sometimes
il was so submerged that we even our
selves did not appreciate the truth That
as a people It IS not dollars but senti-
ment that is king and ruler in Amer
ica.
zone day there came the possible
vision OF American ideals unGer the
heel Of German materlallsm. 1t came
like a flash and just as suddenly there
came a revelation alike TO the bankers ;
and money kings as it came to thellan
on farm and in factory"
The convention adjourned after elee.-
ing these officers: President Robert +.
Maddox. Atlanta. Ca; flrse vice-presi-
dent. Richard :. Halves, st. Louis
second vice-president. John 5. Drum
san Francisco; treasurer, James d. !
IIoge. Seattle; general secretary, T. E. I
Farnsworth. New York; assistant gen
sral secretary; W. G. Fitzwllson, New I
York; general counsel, Thomas b. ,
Patton, New York.