Newport daily independent., 1918-03-12
No Extortion to Be Tolerated, but Liberal Disposition Toward
 Business Needed.
Shrinkage of Values Would Cur tail Capacity to Provide
 SineWS of War.
.conscription of Men, conscrIptlon of
 Money" Analysed.
By OTTO A 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. It has conscripted a portion-a rela- lively small portion of the men of the nation. It has conscripted porti0n- large portion of the incomes of the nation. Capital and business pay more than foar-fifths of our total war taxa ton directly and large share of the remaining fifth indirectly.
 Ii the government went too far In cnscripting men the country would be crippled. If 1t went toc far in con- scripting incomes and earnings the country would likewise be crippled Results of conscrIption of Capital further and conscript not only incomes, but capital, ts answer the riddle not only in what equitable and practicable manner they would do 1t, but what the nation would gain by it7
 It is true that few years ago a 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 al time when the regular Income taa in Germany was very moderate as measured by the present standards of Income taxation.
 Only 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 them7
 Keep them7 That would not answer Is purpose, because the government wants cash, not securities
 
 every ones funds would he depleted2
 If 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 cash7
 Are eonscripted assets to he used as a basis for the issue ot Federal Re serve bank notes? That would mean gross imitation with all its attendant evils. dangers and deceptiona
 Would they repudiate percentage of the national debt7 Repudiatior is no less dishonorable in people than in an individual. and uhe penalty for failure to respect the sanctity of oAi- gations ia no different
 The Thrifty Would De Penaiixed
 The fact Is that the government would gain nothing In the process of capital conscription and the co~atry woud he thrown into chaOe for the time being The man who has saved wauid be penaized, he who has wHM ed would be favored Thrift and cOnsiruc- eye effort. resulting in the needful and fructifying accumulation of caxA al, wosid bs arrested and lastinNv dis .uumgpd
 ~nn understand the crude notion of the ri,sn who would divide all posses slnns equally There would be mighty I,tti~ coming tc Any one by such distri- i,lnun and II IS of course, an utterly impossible thirAx to do. but 1t k an un- ierslandable notion. But by the con, tis.atinn af capital for government uee n~ltbs the government nor any indi- vidusl would b~ benefited
 A vigorously progressive income tax l. both economically and socially sounA \ capital tax is wholly an sound and economically destructive. l. may nevertheless become neces- sary . the case of some 0f the belliger- ent countries te resort tc this expedi- enA but csa conceive of - situation likelY to arise which would make # necejsary or advisable ir this country.
 More than ever would such . tax be harntu in times of war and post-bel- lun reconstruction. when beyond almost ] all s6ips things It k essential to stimu- lAte production aad promote thrift. and wh~p everything which tends to have tAs opposite effect shsuld be rigorously rejected as detrimeDtai to the nations nrength and well-bsins-
 Thers Is a astonishins iot ef Aas5 shipkinG on the srb3ect of the ases q .ac,fal n tha ha0da Of itD oWnegn