The Breckenridge news. (Cloverport, Ky.) 1876-1955, 1918-05-01
Extortion to Be Tolerated, but
, Liberal Disposition Toward
N Business Needed.
Shrinkage Of Values Would Cur
1 tail Capacity to Provide
4 SineWs of War.
Transcription Of Men, conscriptIon Of
Money" Analysed.
BY OTTO n. KAHN.

Much Is being said about the plau-
sible sounding contention that be-
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.
1t has conscripted a portions rela-
lively small portion--of the men Of the
nation II has conscripted a portion
ID large portion of the incomes of the
nation. Capital and business pay more
than four-fifths of our total war taxa
|t'on directly and large share Of the
remaining fifth indirectly.
II the government went too far in
eonscripting men the country would be
crippled. II It went too far in con-
)cripting incomes and earnings the
kountry would likewise be crippled.
Results Of ConseriptIon Of Capital.
would ask those who would go
urther and conscript not only incomes,
but capital, to answer the riddle, not
tnly In what equitable and practicable
banner they would do 1t. but what the
|pation would gain by lit
4 It is true that few years ago a
capital levy was made in Germany, but
~ percentage of that levy was so
All as to actually amount to no more
man 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 trifling fraction of a mans
property Is held In cash. If they con-
script a certain percentage Of his pos
sessions in stocks and bonds, what
would the government do with them?
Keep them? That would not snswer
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
aga of mans real estate or mine or
Ia sor factory, how is that to be ex-
Dressed 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 receptions.
Would they repudiate a percentage
Of the national debt? Reputation Is
no less dishonorable In a people than
In an individual, and the penalty for
failure to respect the sanctity Of obli-
cations is no different.
The Thrifty Would Be PenaIlzed.
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 un.
|derstandable notion. But by the con-
llscation Of capital for government use
neither the government nor any indi.
vidual would be benefited.
A vigorously progressive income tax
Il both economically and socially
sound. A capital tax is wholly unsound
and economically destructive.
II may nevertheless become neces
|sary in the case of some Of the belliger
lent countries to resort to this expedi
lent, but ! can conceive of no situation
likely to arise which would make II
necessary or advisable in this country.
4 More than ever would such tax be
harmful in times Of war and post-bel
hum reconstruction. when beyond al
|most all other things II is essential ia
kGtimulate production and promote
thrift, and when everything which tend
ol>ave the opposite effect should be
|rigpfously rejected as detrimental ID
ne nations strength and well-being.
There u an astonishing lot Of hazy
thinkins on the subject Of the uses Of
|onpital IN the hands Of its owners.