The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1918-03-18
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, consoriptlon Of
Money" Analysed,
BY OTTO II. KAHN.

Much is being said about the plan
slble sounding contention that be.
cause a certain portion Of the young
manhood of the nation has been con
scripted, therefore money must also be
cmscriptcd Why, that is the very
thing the government hns been doing
II has conscriptod o pordon--a rcIa-
lively small portion--of the men OF tho
nation. 1t has conscripted a portion
o large portion Of the incomes of the
nation. Capital aud business pay mon
than fopr1cths Of our total war taNa.
tion directly and n large share of tho
remaining fifth indirectly.
II the government went too far in
couscrlplng men the country would Re
crippled. If it went too far 10 con-
scrptlng Incomes and earnings the
country would likewise be crippled.
Results Of Conscription Of Capital
would ask those who would go
further ana conscript not only Incomes
but capital, 20 answer the riddle. mol
only in what equitable aud practicable
manner they would do it. but what The
nation would gain by il?
1t is true that a 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 triaing fraction OF mans
proI Ierty Is held in cash they con
script a certain percentage Of his pos
sessions in stocks and bonds, what
won d the government do with them?
Keep them? That would not answer
its purpose, because the governments
wan cash, not securities.
Sell them? Who is TO buy them when
every ones funds would be depleted?
If they conscrpt a certain percent
age Of 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 Initiation, with all its attendant
evils, dangers and deeeptIons.
Would they rcpudiate a percentage
OF the national debt2 Reputation is
no less dishonorabe in a people than
iu an individual, and the penalty for
failure to respect the sanctity of obi.
cations Is no different
The Thrifty Would 30 Penalzed.
The fact Is TINT the government
would gain nothing In the process Of
capital conscriptlon and the country
would be thrown into chaos for the
time being. The man who has saved
would be penslized he who has wasted
would be favored. Thrift and construe.
tive effort, resulting in the needful asl
fructifylng accumulation Of capital
would be arrested and lastiugly 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 10 do, but it is an uu.
ders,andable notion. But by tho CON
nscatlon 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.
It may nevertheless become neces.
sary in the case of some of the bcliger.
ent countries to resort to this expedl.
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 a tax be
harmful in times of war and post.bel.
lum reconstruction, when beyond al
most all other things 1t Is essential to
stlm 1late 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-belng.
There is an astonishing lot Of hazy
thinking on the subject OF the uses of
caujtol in the hands of jts owners