The midland journal. (Rising Sun, Md.) 1885-1947, 1918-04-12
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 oTro II. KAHN.


cause a certain portion Of the young
manhood Of the nation has been con-
scripted, therefore money must also be
conscripted. Why, that Is the very
thing the government has been doing.
1t has conscripted portion-a rela-
lively small portion-of the men of the
nation. It has conscripted portion
q large portion Of the incomes of the
nation. Capital and business pay more
than four-fifths Of our total war taxa
ton directly and large share of the
remaining fifth indirectly.
II the government went too far in
conscripting men the country would be
crippled. II 1t went too far in con-
scripting incomes and earnings the
country would likewise be crippled.
Results Of ConscrlptIon Of Capital.
I would ask those who would 60
further and conscript not only incomes,
but capital, to answer the riddle, not
only in what equitable and practicable
manner they would do 1t, but what the
nation would gain by 1t?
It Ia true that few years ago
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
at time when the regular income tax
In Germany was very moderate as
measured by the present standards Of
income taxation.
Only a trifling fraction of mans
property Is held in cash. If they con-
script certain percentage of his pos
sessions In stocks and bonds, what
would the government do with them?
Keep them? That would not answer
lis purpose. because the government
wants cash, not securities.
Sell them? Who is to buy them when
5evcry ones funds would be depleted?
< II they conscript a certain percent.
are Of a mans real estate or mine or
farm OF factory, how is that to be ex.
pressed and converted into cash?
Are conscripted assets to be used as
a basis for the issue Of Federal Re-
serve bank notes? That would mean
gross Initiation, with all its attendant
evils, dangers and receptions.
Would they repudiate a percentage
OF the national debt? Reputation Is
no less dishonorable In people than
In an Individual, and the penalty for
failure to respect the sanctity Of obli-
gatIons is no different.
The Thrifty Would BE Renaiized.
The fact is that the government
would gain nothing In the process Of
capital CONSUMPTION 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 construc-
tire effort, resulting in the needful and
afructifying accumulation of capital,
would be arrested and lastingly dis
Acouiaged.
4 can understand the crude notion of
the nan WHO would divide all posses
slQps equally. There would. be mighty
little coming to any one by such distri,
button, and 1t Is. of course, an utterly
!. impossible thing to do, but II is an un-
derstandable notion. But by the con-
iIscs.tion Of capital for government use
neither the government nor any indi-
vidual would be benefited.
A vigorously progressive income tax
is both economically and socially
: sound. A capital tax is wholly unsound
and economically destructive.
II may nevertheless become neces-
sary in the case of some of the beliger-
ent countries to resort to this expedi
ent, but ] can conceive Of no situation
likely to arise which would make IL
necessary or advisable in this country,
More than ever would such tax be
harmful In times of war and post-bel
lum reconstruction. when beyond al.
most all other things II is essential 10
stimulate production and promote
thrift. and when everything which tends
to have the opposite effect should be
vigorously rejected as detrimental to
the nations strength and well-being.
There Is an astonishing lot of hazy
thinking on the subject Of the uses Of
capital IN the hands Of its owners