Charlevoix county herald. (East Jordan, Mich.) 189?-1953, 1918-03-29
WAR PR0F|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. conserIptIor Of
Money" Analysed.
ey OTTO n. KAHN.

Much Ii being said about the plau-
sible sounding contention that be-
cause q certain portion of the young
manhood of the nation has been con-
scripted. therefore money must also be
conscripted. Why, that Ii the very
thing the government has been doing
II has conscripted @ portion-a rela-
lively small portion-of the men Of the
nation. II has conscripted a portion
q large portion Of the incomes of the
nation. Capital and business pay more
than four-nfths of our total war taxa
ton directly and a large share of the
remaining 6fth indirectly.
II the government went too far In
conscripting men the country would be
crippled. II II went tor far ir con-
scripting incomes and earnings the
country would likewise BE- crippled
Results Of conserlptIon Of Capital
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 II, but what the
nation would gain by III
II II true that q few years ago
capital levy was made In Germany. but
the percentage Of that levy war 80
small az 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 az
measured by the present standards Of
income taxation.
Only q trifiing fraction Of q mans
property II 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 themf That would not answer
its purpose, because the government
| wants cdSn, not SECURITIES
Sell them7 Who Is to buy them when
every ones funds would be depleted7
II they conscript q certain percent
age Of q mans real estate or mine or
farm or factory, how Is that to be ex-
pressed and converted into cash7
Are conscripted assets to be used as
O basis for the issue of Federal Re-
serve bank hottest That would mea
gross imitation, with all Its attendant
evils, dangers and receptions
Would they repudiate percentage
of the national debt1 Reputation Is
no less dishonorable In o people than
In an Individual, and the penalty for
failure to respect the sanctity of obi
cations II no different
The Thrifty Would Be PsnaIIzed.
The fact IL 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-
tive effort. resulting In the needful and
fructifying accumulation Of capital.
would be arrested and lastingly dis
couraged
can understand the crude notion Of
the man who would divide all posses
sions equally. There would be mighty
little coming to any one by such distrl-
button. and II Is, Of course. an utterly
impossible thing to do. but II II an un-
derstandable notion. But BY the con-
nscstion of capital for government, use
neither the government nor any indi-
vidual would be benefited
A vigorously progressive income tar
10 both economically and socially
sound. capital tai II wholly IN
sound and economically destructive.
II may nevertheless become neces-
sary In the case of some Of the belliger-
ent countries to resort to this expedi-
ent. but can conceive of no situation
likely to arise which would make IT
necessary or advisable In this country.
More than ever would such tai be
harmful In times of war and post-bel-
um reconstruction, when beyond almost
all other things II IL essential to stlmu-
late production and promote thrift. and
when everything which tends to have
the opposite effect should be vigorously
rejected az detrimental to the nations
strength and well-being.
There 10 an astonishing LOT of hasy
thinking on the subject of the uses Of
capital In the hands Of its ownera