The gazette-times. [volume] (Heppner, Or.) 1912-1925, 1918-06-13
War PROFITEER
| PUBLIC NUISANCE
No Extortion to Be Tolerated, but
Liberal Disposition Toward
Business Needed.
Shrinkage Of Values Would Cur
tail Capacity to Provide
SineWs Of War.
"conseription Of Men, conscriptIon Of
Money" Analysed.
BY OTTO n. KAHN,

Much Is being said about the plau.
sihle sounding contention that be-
cause 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 portion-a rela.
lively small portion-of the men of the
nation. 1t has conscripted a portion
large portion of the incomes of the |
nation. Capital and business pay more
than four-fifths Of our total war taxa.
tfon directly and a large share Of the
remaining hfth indirectly.
II the government went too far in
conscripting men the country would he
crippled II 1t went too far in con.
scriptins incomes and earnings the
country would likewise be crippled
Results Of conscription Of Capital
l would ask those who would 20
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 it?
1t 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
at a time when the regular income tax
ID 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 a certain percentage of his nos.
sessions In stocks and bonds, what
would the government do with them2
Keep them? That would not answer a,
Its purpose, because the government b,
wants cash, not securities +,
Sell them? Who is to buy them when n,
every ones funds would be depleted? w
If they conscript a certain percent. tr
age OF mans real estate or mine or c.
farm or factory, how is that to be ex
pressed and converted into cash? ~
Are conscripted assets to be used as fo
a basis for the issue of Federal Re. ~,
serve bank notes? That would mean he
gross imitation, with all its attendant ed
evils, dangers and deceptions. m.
Would they repudiate a percentage ex
II the national debt? Reputation is
10 less dishonorable in a people than
n an individual, and the penalty for
allure to respect the sanctity of obli- or'
cations is no different 1a>
fay
The Thrifty Would Be PenaIized,
The fact is that the government Of
YOU'D gain nothing in the process of eau
apltal conscription and the country ilv
would be thrown into chaos for tbe mo
lme being. The man who has saved era
'0uld be penalized, he who has wasted dos
'ould be favored. Thrift and construc- nra
we effort, resulting in the needful and ono
ructifying accumulation of canital wi,,
'ould be arrested and lastingly dis. ira,
h,o
l can understand the crude notion Of r,
le man who would divide all posses. and
ons equally. There would be mighty ba n
tile coming to any one by such distri. core
ltion, and 1t is, Of course an utterly otbe
npossible thing to do, but 1t Is an I'M. uis,
'rstandable notion. But by the con- that
'cation Of capital for government use doe,
either the government nor any indl- su,t
dual would be benefited, o,a
vigorously progressive income fax m,
both economically and socially 49,
und. capital tax Is wholly unsound no+
ID economically destructive. ,o,,
1t may nevertheless become neces- hut
ry In the case of some of the belliger. want
countries to resort to this expedi- r,
I, but tan conceive of no situation 49,.
ely to arise which would make II :
''''N0 - In 0
cessary or advisable in this country, ...
More than ever would such a tax be M,
rmful In times Of war and post.bel. j. A..
n reconstruction, when beyond al. ~ =,
st all other things 1t Is essential to oon.
mulate production and promote ,n ~
lit. and when everything which tends ~. ,
have the opposite effect should b., oot,,,
orOusly rejected as detrimental to ,,od
nations strength and weI-belng. throw
here is an astonishing lot of hazy harm
,king on the subject Of the uses of wealt
ital In the hands Of Its owners. cansc