Mountain Home Republican. [volume] (Mountain Home, Idaho) 1915-1946, 1918-03-23
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, conscriptIon Of
Money" Analysed.
by OTTO n. KAHN.

ny W " ~. N@ffrs
Much is being said about the plau-
sible sounding contention thai be-
cause a certain portion OF the young
manhood OF the nation has been con-
scripted, therefore money must also be
conscripted. Why, that La the very
thing the government has been doing.
II has conscripted portion--a rela-
lively small portion--of the men of the
nation. 1t has conscripted q portion
a large portion of the incomes of the
nation. Capital and business pay more
| than four-fifths of our total war taxa
ton directly and large share Of the
remaining fifth indirectly
II the government went too far In
conscripting men the country would be
crippled. II II 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 go
further and conscript not only incomes
but capital, to answer the riddle not
only In what equitable and practicable
manner they would do 1t, but what the
nation would gain by III
Ii is true that few years ago q
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 tritiing fraction of mans
property Is held In cash. Ii they con-
script certain percentage of his pos
sessions In stocks and bonds, what
would the government do with them7
Keep themf That would not answer
its purpose, because the government
wants cash, not securities.
Sell them1 Who Is to buy them when
every ones funds would be depleted?
II they conscript 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 al
a basis for the issue of Federal Re
serve bank notes7 That would mean
gross imitation, with all Its attendant
evils dangers and deceptions.
Would they repudlate percentage
of the national debtf Reputation Ia
no less dishonorable in people than
In an individual, and the penalty for
failure to respect the sanctity Of obli
cations In no different.
The Thrifty Would BE PenaiIxed.
The fact 10 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 penalixed, 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
slons equally. There would be mighty
little coming to any one by such distrt
button, and II In, of course, an utterly
impossible thing to do. but II Ia an un
derstandable notion. But by the con
fiscation of capital for government us'
neither the government nor any indi
vidual would be benefited.
A vigorously progressive income tar
In both economically and socially
sound. capital tax Ia wholly un
sound and economically destructive.
1t may nevertheless become nsces
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 II
necessary or advisable In this country
More than ever would such a tax b.
harmful In times Of war and post-bel
lum reconstruction, when beyond slmos
asl other things 1t 10 essential to stimu
late production and promote thrift, and
when everything which tends to havs
the opposite effect should be rigorousl,
rejected as detrimental to the nation'l
strength and well-being.
There is an astonishing lot of haa,
thinking on the subject OF the uses o.
capital In the hands Of its owners
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