Emmons County record. [volume] (Williamsport, D.T. [i.e. N.D.]) 1884-current, 1918-04-18
WAR PROF|1EER
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.
sconseriptIon Of Men. conserlptlen q
Money" Analysed.
BY OTTO n. KAHN.

0y OIJO ~. KAHN.
Much Is being aid about the plan
sihie sounding contention that De
cause a certain norton 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 rela.
lively small portiOn-of the men Of the
nation. 1t has conscripted portion
large portion of the incomes of the
nation. Capital and business pay more
than four-tfths of our total war taxa
ton directly and a large share Of the
remaining tifth indirectly.
II the government went too far tn
conscripting men the country would be
crippled. II It went too far IN con.
scripting incomes and earnings the
country would likewise be crippled.
Results Of CONSUMPTION Of Capital.
! would ask those who would 20
further and conscript not only incomes
but capital. to answer the riddle, not
only in what equitable and practicable
manner they would do It. but what the
nation would gain by III
1t 10 true that . few years ago q
capital levy was made In Germany. but
the percentage Of that levy was 90
small as to actually amount to no more
than an additional income tax and that
at time when the regular income tar
In Germany was very moderate az
measured by the present standards Of
income taxation.
Only trlfling fraction Of . mans
property 10 held In cash. II they con-
script certain percentage of bis pos
sessions in stocks and bonds. what
would the government do with them7
Keep them7 That would not answer
tts purpose, because the government
wants cash. not securities.
Sell them7 Who 10 to buy them when
svery ones funds would be depleted?
II they conscript a certain percent
age Of mans real estate or mine or
farm or factory. how 10 that to be ex
pressed and converted into cash7
Are conscripted assets to be used a
. basis for the issue of Federal Re-
serve bank notes? That would mean
gross intiesion. with all its attendant
evils. dangers and receptions.
Would they repudiate q percentage
Of the national debit Reputation 10
40 less dishonorable in q people than
In an individual, and the penalty for
failure to respect the sanctity of obi.
cations is no different
The Thrifty Would Be Penalixed.
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-
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 distri.
button. and 1t Is, of course, an utterly
impossible thing to do, but 1t Is an I'm.
derstandable notion. But by the con.
fscation of capital for government use
neither the government nor any indi.
vidual would be benefited.
A vigorously progressive income tar
IL both economically and socially
sound. A capital tax is wholly unsound
and economically destructive.
1t 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 1t
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 1t Is essential to
stimulate production and promote
thrift and when everything which tends
to have the opposite effect should be
vigorously rejected as detrimental tc
the nations strength and well-being.
There 10 an astonishing lot of hazy
thinking on the subject OF the usss el