The Richmond Virginian. (Richmond, Va.) 1910-1920, 1918-11-27
new CONDITIONS
FORM BIG PROBLEM
70 Meet Conditions Samuel r. Morgan
Suggests II CONSUME
Crs' Tax.
-ExPENsIoN OF BUSINESS
Industry May Not he Able to Make
Progress Under Double Load OF
High Taxes and High Wages.

carolina Chemical company, passing
= through New york on his way home
IN Richmond, made the statement to-
uay that the complete change in m
duStrial conditions due To the aband-
onment of war work and the return
to peace operations will compell a
radical readius meut of the tax meas
uroS now before congress,
Entirely new conditions arc being
established very rapidly" said Mr..
Morgan, and these make il urgently
necessary that a new plan of taxation
be Immediately considered by con
gress. Under the program on which
congress had been working up to the
present time an excess tax on Capitd
and profits was divided. This pro-
gram will now have to be considera-
bly, modified and brought INTO line
with the ability of the nation to meet
such n tax.
1T is my fear. rs well as the fear
OF many manufacturers and bankers
with whom / have discussed the mat
ter, that any unduly large irnpost on
the profits of industry will contribute.
more than any other single factor TO
bring about severe depression III
American business Were the capital
; tax to reach the amount that was out
lined for it a short time ago, am
sure that manufacturers from one
end Of the country to the other would
be paralysed in the endeavors. They
could not successfully expand their
business. but would be forced 10 con-
nne their efforts To IA bare minimum
Expension of Business.
What we require more than any
thing else in the immediate future is
an expansion in the nations normal
business and speeding of the wheels
of peace time output to absorb into
normal employment the hundreds OF
thousands Of men who are released
from war work and from Gen, Per-
shngs army. Ne duty that contronts
us today liz greater Than la prepare to
reabsorb in peace-tlm" industry the
men who in coming months are re-
leased from wartime employment
We cannot let that duty unless indus
Try has removed from II every posi-
bic shack e that might hinder its pro
gress and prosperity,
In the period ahead of US industry
will NOT be able 10 progress under the
double load az high faxes and high
wages We cannot afford wholesale
unemployment, nor can We afford any
radical adjustments downward in
wage scales in the months To come,
But If congress were To proceed on
any program that compelled manu-
facturers everywhere 20 curfaii their
activity the labor situation might
quite concsiNahiy be made acute
What We need for the future Is a POI
ICY that viii not only maintain but in
crease our peace-time activity; that
il absolutely necessary II we are TO
~. &. al
war time industry.
Consumers Tax.
Therefore I want to suggest n
form of taxation not now In existence,
but which the needs of the goyern-
ment appear to me to necessitate--
simply and entirely as reconstruc-
ton measure. This method of taxa
ton is what would properly be called
n consumers purchase tax or course.
no unreasonable aount should be
raised hy n tax of this kind. but IL Is
the only. methed OF taxhtion that J.
j nsw Of 'izider~ sShi h every carstltfa eF1
would pay a portion and portion
based entirely on the amount con
sun1ed
"lnder this plan, If "a mans con
sumption Was small he would pay but
little. If his consumption was large, his
tax would he proportionately heavy.
No ono could easily evade II. Ii would
be paid day by day. rs purchases were
made. II would NOT be a particular
burden or hardship and would pro
duce large revenue. governed by
the amount OF percent taxed against
the purchase.
YIN no way could i, he made
debt producing obligation. Al the
time Of The purchase the consumer
would pay tho tax~~-he IL two cents or
Ave Thousand dollars There is no
man who is deserving Of eitize nshtp
who would not be willing In make the
necessary sacrifice---if sacrifice it can
be called. 10 help support his govern
mcnt under present conditions This
tax IL not giving until IL hurts" but
IL gives 10 the man who pays Il "A di-
rect interest in his government, and
makes him II more manly man, II
makes him feel that he is part and
parcel of the government and equally
deserves with all other citizens the
care and protection which the gov
or ment can and does give.
Levels An Rank.
The consumers purchase tax is in
no sense class legislation. but makes
oue class of all We neither want
nor need class legislation for the sup
mort of the government. The rich
and the poor alike have fought in the
trenches. side by side. each doing his
whole duty Then why not everybody.
by his purchase tax, pay portion OF
tho taxes necessary to support our
soldiers?
This tax would teach conservation
and economy. and to purchase only
sush things AS We're. SO to speak.
needed or necessary, Ii would dis
courage useless expenditures, At the
same time. it would produce a rev.
enue astonishingly large. Being paid
day by day ii would not disturb the
financial situation. as is now neces-
sarity done by the collection OF enor-
NOUS income and war prorit tax. | do
not mean by this that either OF these
taxes ought To or should be abolished.
They are absolutely necessary. and II
not unreasonabiy severe. no one
ought to complain of having Them to
ray This consumers purchase tax
would simply be an adjunct TO taxes
collected in other ways, and would
not be Intended in any way to be sub
s,ituted for them, though 1t might en-
.hle some reduction in these taxes
IL fouud they arc OnDrpSSiNc1y