The Devils Lake world and inter-ocean. (Devils Lake, N.D.) 1915-1920, 1918-03-20

lstfinkaossof Values Would Cur.
tell Capacity To- Provide
Sinews Of War.
ae.snseriptlon of Men, consorlption q
aonsxss Analyzsd.
. oTTo i. KAHN

IS.N#Is ~. $685. i
y oTTo Il. KAHN.
Much = being said about the plan
sfble sounding contention that 10
eauSs I certain portion Of tho young
nanhood Of the nation has been con-
scripted. hersfoFe money must also -
'eonscriptsd Why, that b the very
thing tho government has bsen doing.
Il has eonscripted aportion-a rsla.
lively arnallsportion-of the men Of the
natto1. Il has conscriptsd q portion
aFlarsesportion- q the incomes Of the
nation. Capital ana business pay mors
thans1our-nfths Of our total val taxa
tion directly and & large share Of the
remaining nth Indirectly.
II the government went too far IN
eonscriptins men the country would b
crippled. II Il went too far 10 con.
ecsipting incomes and earnings the
eountrry would. likewise be crippled.
.aa%H"Ef.sa SSSIr ~ Ea.E.6I tFtH E3S%SS&E2T #attzf.
Results Of conserlptlon q Capital
J. would ask those who would 50
further and eonscript not only incomes
but capital. @ answer the riddle. not
only b what equitable and practicable
manner they would do It. but what the
nation would gain BY 1T
Il = strus that Z few years ago Z
capital levy var made IN Germany. but
the percentage Of that levy was %
ma1lsasst to actually amount to no more
than N additional income tax and that
Ct time when the regular income tax
d Gsrmany was very moderate a.
measured BY the present standards Of
income taxation. s
Only . tr1hing fraction Of q mans;
property 10 held In cash. II they con.
script ! certain percentage Of his pos
sessions In stocks and bonds, what.
would the governmentsdo With themi
Keep them1 That would not answer
IT. purpose. because tho government
wants cash, not securitiesI
Sell them1 Who is to buy them whom
svery ones funds would be depleted7
e they conscript a certain percent.
age Of Z mans real estate or mine Of
farm-or factory, how Is that to be ex
pressed and converted into cash7
Are conscripted assets to be used a.
. basis for the issue Of Federal Re.
serve bank notes1 That would mean
grosss imitation, with all It's attendant
evils, dangers and receptions.
Would they repudiate q percentage
Of the national debit Reputation IL
nolless dishonorable In q people than
in IN individual, and the penalty for
failure to respect the sanctity Of obi.
cations 70 no different.
The Thrifty Would Be Penailxed.
The fact Il that the government
would gain nothing In the process Of
capital conscription 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 construlc-
tive effort, resulting In the needful and
huctifying accumulation Of capital.
would be arrested and lastingly dis
eouraged.
can understand the crude notion Of
the man who would divide al posses
sions equally. There would be mighty
little coming to any n BY such distri.
button, and it Is, Of course, a utterly
impossible thing to do, but It Is an I'M
derstandable notion. But BY the con.
1scation Of capital for government use
neither the government nor any indi1
yidual would be benefited.
A vigorously progressive income tax
b both economically and socially
sound. a capital tax IL wholly un-
sound and economically destructive.
It may nevertheless become neces-
sary "a the case Of some Of the belliger-
ent countries to resort to this expedi1
snt, but I can conceive Of no situation
likely to arise which would make It
necessary or advisable In this country.
More than ever would such a tax be
harmful In times Of war and post-bel-
INN reconstruction, when beyond almost
al other things It 10 essential to stimu.
late production and promote thrift, and
when everything which tends to have
the opposite effect should be vigorously
rejected % detrimental to the nations
strength and well-being.
Thsre u an astonishing lot Of hasy
AhlnkinR on the subject Of the uses 81