New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-04-05
Surplus or Much :?
70 the Editor of The Tribune.

To the Editor of The Tribune.
Sir: In your issue CT March 20 you editori-
ally criticised statement in my recent public
announcement as candidate for the Re-
publican nomination for United States Sem
ator for New Jersey, to the effect that was
in favor of paying for the war by taxes
upon surplus wealth instead of by issuing
bonds The ground of your criticism is that
all wealth is actively employed in the pro-
duction Of other wealth, and that therefore
there is no surplus wealth to take by taxa
ton.
This is a complete msstatement of my
position. The context of my article shows
that by surplus wealth l meant not wealth
lying idle for which there was no use or
need, but wealth over and above a fair al
lowance for living expenses of the owner,
and over and above the fair amount which
any owner of a fortune ought to be in JUS
tce allowed to possess
This amount, of course differs according
to each individuals conception of what is
just under the circumstances
My own view is that no man. particularly
in these war times, should be allowed to ex-
pend more than $4,000 for the support of
himself and his family in any year, and that
the bulk OF all incomes above that amount
and the greater part of all fortunes over
95UG,O0O, and at least 80 per cent of excess
war profits trealized by business concerns
should be taken by income, inheritance and
excess war profits taxes, and that if this is
not sufficient to pay for the war direct ad-
ditional tax levy should be allowed upon all
fortunes IN excess of, say. 100000.
I think it is impossible to misunderstood
that statement 1t is true, as you say, that
nearly all wealth is devoted to some pur-
posc useful or otherwise, but that fact is
not an argument against raising money by
direct taxation, instead of by bonds. The
billions that we have raised by the sale of
bonds have been paid by money taken from
other employment or withheld from en-
ployment to which it would otherwise have
been devoted.
Take as an example one of the sub
scriptions of John d. Rockefeller to the
last Liberty Loan bond issue, which was
said to be $20,0O0,00O. Mr.. Rockefeller
either had this money in the bank, or he
sold securities to raise the money, or he
borrowed the money from the banks upon
collateral. In any event this money is
/ Withdrawn from active use by the bank
from which it is taken or from Mr. Rookie
1ellefs business. The government takes
Mr.. Rockefeller's S20000,000 and hands him
a bond bearing per cent interest The
money is at once expended by the govern
ment, not for any additional production of
permanent wealth which would serve ms an
asset against the bonds, but for things that
must inevitably in few months disappear.
leaving the government in debt to Mr.
Rockefeller to the extent Of $20,OOO,OOO. In
TO %1,o
THIS $2O,O0O,OOO the government must raise
this money by taxation extending over a
generation, and such taxes will be raised
by tariff taxes, which fall upon the people
IN proportion to their consumption of goods
and by income taxes, which fall dispropor-
tonally upon men of small incomes. and
/ therefore an unfair share Of this burden
devolves upon the poor and those of mod
crate means.
Under the bond plan, the soldiers who
survive the war will on their return be
compelled for generation to give up a
substantial part of their scanty earnings
to pay back to Mr.. Rockefeller the money
he has loaned the government out of his
enormous wealth.
My proposition is that, as we are con-
scrlptlng the young men from their bust
ncsseS ana sending them abroad at the risk
of their lives to defend the country, includ-
ing the very large part of the country
owned by Rockefeller, it is simple Justice
that we should conscript this $4,000, 900
from Mr.. Rockefeller in direct taxes and
give him no bonds in return. If this prin-
cipe was carried out, it is my contention
that it would inhct upon the rich no real
sacrifice, because it would still leave them
much more than they ought to have. and it
would by relieving us from the necessity
OF issuing bonds, save the imitation of orr
currency which is sure to follow these big
pond issues. This imitation, all experience
shows, causes rapid rise in the cost If
the necessaries of life, which bears heavily
upon those who work for wages and sala-
rles and retards all productive industry.
Your answer to this argument. "a TINS
stated, would, am sure, interest and in
struct your readers.
GEORGE L. RECORD.