New-York tribune., 1918-05-06
The Wealth Fallacy
Mr.. Record Still Thinks Great
Fortunes Can Be Con-
scripted
O the Editor of The Tribune.


Sir: You seem to defend the existing
order whereby enormous wealth accumu-
lates in the hands of few upon the ground
that this is the only method by which
capital fund can be accumulated for estab-
hshlng new enterprises and extending old
ones and to afford subscriptions to govern
ment loans. This is only another way of
claiming that privilege is an aid to society.
This is the attitude which the privileged al
ways take in every age when their prvi-
leges are assailed. A moments thought
will show that this position is unsound
with reference to the bond question we
are discussing. If this wealth must be ac-
cumulatcd in the hands of few in order
that there may be money with which to sub
scribe to bonds, the money so subscribed
is of course withdrawn from all possibility
OF financing new enterprises or charging
old Ones. Therefore, the government might
Just as we'll take the money by taxation as
to issue bonds for it.
Your final argument, that a tax upon
great wealth could not be levied without the
government taking over and operating the
properties represented by the securities
owned by the very rich, proceeds upon the
idea that ! propose that the government
should "seizc overnight" as The Tribune
phrases it, all of the property of the rich
have made no such proposition | assume
that If the government determined to tax
The wealth OF the very rich it would pro-
cced in accordance with recognized financial
principles.
The government would not seize factories
or securities at all. The government would
levy upon Mr.. Rockefeller tax of say. s1O,-
oOo0o0 upon his income, and tax of, say.
III per cent on his fortune which, we will
say, would be another $4,000 900. Mr.
would hon
S6000O,O00 just exactly as he now proceeds
to raise any sum of money when he goes
into an enterprise, to wit by selling his
securities in the market, if the market will
take them without depreciating the price
and II not by putting up securities in the
bank as collateral for loan. discharpinp
this loan out of subsequent income or sales
OF his collateral or other securities made at
a time when the market will absorb the
same.
This process would be repeated from time
10 tinc as good judgment would dictate In
other words, the machinery of COLLECTING q
capital tax is exactly the same as the ma-
chinery of collecting an income or war
profits tax or the ordinary municipal nron.
erty tax. p
ne tribune adroitly lodges my question
as TO why the government should give a
per cent bond to Mr. Rockefeller in return
for S20000,000 subscription to the war
and make the soldiers who return from
rlsklng their lives in battle toll for thirty
years to pay back this S20,OOO00O and in
terest to Rockefeller and his heirs. | should
ike very much to have that question
directly answered.
hold that no man has ever earned s1OO.-
100000, or anything like it, Every great
fortune is due in part to the man who maos
IL and IN part to the institutions of gov
erhmeht by which alone the making of the
fortune is made possible.
nold that no man ought to be allowed
IN republic to possess the nower ronro
sented by S10O,000.O0O, to saw nothino of +ho
huhdreds OF millions which Mr.. Rockefel1er
is SAID to possess. Mr.. Ford is a remarlab1o
hsh' ana no one begrudges him anv reason
aole reward Tor his great service. But Mr.
oIu never dreamed when he was perfect
'''s ms automobile of getting together a
hundred millions of dollars 1t reouired ,n
such reward to stimulate his oor;rs = nv ~
an hne spirited men, Mr. Ford labors for
'he reward OF great service rather than Tho
reward of great riches. vic
nave not attacked either Mr. Ford or
MY. hocketellcr personally. am att.oI;,o.
inc soc'ai and industrial system which al,
iown any man to accumulate one hundred
f"'Illons OF dollars and possess it himself
ana "hich dooms to hopeless and monoton
Gus toll for scanty wages hundreds of tho,,
SANDS OF men who produce wealth bv labor
ana condemns to under-nourishment .nd
stunted development hundreds of thn'' "'au
SANDS OF little children IN cur great c;tjes
and IN the slums that surround our rrast
staple industries. " siea'
:; - ! ms IS. in nay judgment, the great cues.
LION "hlch this generation must face,
"oulo nave the Republican nartv a.+on,ut
W soiVe IT, as 1t solved the question If
slavery | should much like 70 ss''" VI
great newspaper take the side of tho ~
plotted workers IN this great contest 90 !,
so giorlousy espoused the cause Of tbe
save under Horace Greeley's direction
,, GEORGE L. RECORD.
Jersey City, N. j., May 4, 1918.
R,,r,;u- TT