The citizen-Republican. (Scotland, Bon Homme County, S.D.) 1???-19??, 1918-04-11
ar PROFIT
UDLIC NUS J ! nee
ito Extortion to Be Tolerated, but
Liberal Disposition Toward
Business Needed.
Shrinkage Of Values Mould Cur
tail Capacity to Provide
Sinews Of War.
"conseription Of Men, conserIption q
Money" Analysed.
BY oTTo Il. KAHN.

-
BY oTTo II. KAHN.
Much is being said about the plau-
sible sounding contention that be-
cause certain portion Of the young
manhood of the nation has been con-
scripted, therefore money must also be
conscripted. Why, that ID the very
thing the government has been doing.
II has conscripted p,. .ion-a rela-,
lively small portion-of the men Of the
nation. II has conscrlpted portion
large portion of the incomes Of the
Snntiol. Capital and business pay more
than four-fifths of our total war taxa
ton directly and large share Of tile
relnain:iig fifth Indirectly.
Z II the government went too fur In.
conscripting men. the country would he
crippled. If 1t went too far In con-
scripting incomes and earnings the
country would likewise be crippled.
Results Of conscription Of Capital.
would ask those who would go
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 it?
1t is true that "a few years ago
capital levy was made In Germany, but
the percentage Of that levy was 80
small as to actually amount to no more
than an additional income tax and that
at a time when the regular income tax
in Germany was very moderate as
measured by the present standards OF
income taxation.
Only trifling fraction Of mans
property is held in cash. Il 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
its purpose, because the government
wants cash. not securities.
Sell them? Who Is to buy them when
every ones funds would be depleted?
II they conscript certain percent
age Of a mans real estate or mine or
farm or factory, how is that to be ex-
pressed and converted into cash?
= Are. conscripted assets to be used as
| basis for the issue Of Federal Re-
serve bank notes? That would mean
gross imitation. with all its attendant
evils, dangers and deceptions.
| Mould they repudiate a percentage
| Of the national debt? Reputation is
/ no LESS tfishonorable In people than
in an individual and the penalty for
1 failure to respect the sanctity of obli
cations is no different.
The Thrifty Would Be PenaIized.
The fact Is that the governmen,
would gain nothing In tie process oi
capital conscriptiOn and tie country
!! would be thrown into chaos for the
time being. The man who has saveG
A would be penalized, he who has wasted
would be favored. Thrift and construc
n tive effort, resulting in the needful ant
fructlfying accumulation Of capital
would be arrested and lastingly dis
couraged.
can understand the crude notion O
the man who would divide all posses
sions equally. There would be might.
little coming to any one by such distrl
button, and It is. Of course, an utterl.
impossible thing to do, but it is an un
derstandable notion. But by the con
fiscation of capital for government us
neither the government nor any ind
vidunl would be benefited.
II A vigorously progressive income tn
Is both economically and social
sound. A capital tax is wholly unsoun
and economically destructive.
81 It may nevertheless become neces
Isary IN the case Of some Of the belligel
ent countries to resort to this exped
ent- but can conreiye Of no sltuatio
likely to arise winch w0uid make
necessary Or xfvfgGble lin this r6untr.
1en0h snan 80 svnuIU ksnmf. SSr< Il