Mansfield mirror. (Mansfield, Wright County, Mo.) 1908-1957, 1918-03-28
war PROF|TEER
PUBLIC NUISANCE
No Extortion to Be Tolerated, but
Liberal Disposition Toward
Business Needed.
Shrinkage Of Values Would Cur.
tail Capacity to Provide
Sinews Of War.
Transcription Of Men, CONSUMPTION Of
Money" Analysed.
BY OTTO II. KAHN.

"uSh ID Ociu6 cdiu dDOuC Lne plaC
sible sounding contention that b.
cause q certain portion of the younJ
manhood Of the nation has been con
scripted, therefore money must also b,
conscripted. Why, that Is the yer,
thing the government has been doing
1t has conscripted a portion-a rela
lively small %pOrtion-of the men Of tn,
nation. 1t has conscrlpted a portion
a large portion of the incomes of tn,
nation. Capital and business pay NOR
than four.fifths Of our total war taxa
ton directly and a large share of tn.
remaining fifth indirectly.
If the government went too far IL
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 CONSUMPTION Of Capital.
"ouiu uSh tuoSe WHO WOulO &c
further and conscript not only incomes,
but capital, to answe the riddle, not
only in what equitable and practicable
manner they would do it, but what the
nation would gain by it?
1t 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
Mt a time when the regular income tax
IN Germany vas very moderate as
measured by the present standards of
inccme taxation.
Only u trlfling fraction of a mans
property is held in cash. II they con-
script a certain percentage of his pos
sessions in stocks and bonds, what
would the government do with them7
Keep them? That would not answer
Its purpose, because the government
wants cash, not securities.
Sell them? Who is to buy them when
every ones funds would be depleted?
If 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
n 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 repudlate n percentage
of the national debit Reputation Is
no less d%ishonorable in a people than
in an individual, and the penalty for
failure to respect the sanctity Of obi
cations is no different.
The Thrifty Would 30 PenaIIzed.
The fact is that the government
would gain nothing In the process of
CONSUMPTION and the country
would be thrown into chaos for the
time being. The a who has saved
would be penalized, he who has wasted
would be favored. Thrift and construc-
tive effort, resulting in the needful and
accumulation Of capital,
would be arrested and lastlngly dis.
outraged.
can understand the crude notion Of
he man who would divide all possess
sions equally. There would be mighty
title coming to any n by such distri-
,ution, and 1t is, Of course, an utterly
impossible thing to do, but It is an I'M {
notion. But by the con. I
lscation of capital for government use 6
the government nor any indi- I
'iduaJ would be benefited. t
A vigorously progressive income tax g
. both economically and socially
ound. A capital tax Is wholly I'M t
uund and economically destructive. y
It may nevertheless become neces- v
airy In the case of some Of the belliger. b
nj countries to resort to this expedi- v
Mt. but I can conceive Of no situation
kelly to arise which would make It r.
ecessary or advisable in this country. I,
More than ever would such a tax be t,
In times Of war and post-bel. 7
m reconstruction, when beyond almost ir
other things It is essential to stimu. n
te production and promote thrift, and Il
hen everything which tends to have ir
.e opposite effect should be vigorously Al
rs detrimental to the nations ii
and well.being. b,
There is an astonishing lot of hazy et
linking on the subject Of the uses OF ca
Ipital In the hands Of Its owners. OF