Courier Democrat. (Langdon, N.D.) 1891-1920, 1918-05-30
WAR PR0F|TEER
PUBLIC NUISANCE
No Extortion to Be Tolerated, but
Liberal Disposition DWARF
Business Needed.
Shrinkage of Values Would Cur
tail Capacity to Provide
SineWs of War.
49, 49, ~----S-g>- -
transcription Of Men, Consumption Of
Money" Analysed.
BY OTTO II. KAHN.

sible sounding contention that be,
cause q 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, 1t has conscripted q portion
a large portion Of the incomes of the
nation. Capital and business pay NOR,
than four-ffths Of our total war taxa
ton directly and q large share of thu
remaining fifth indirectly.
If the government went toe far In
conscripting men the country would be
crippled. II 1t wen, too far in con.
scripting incomes and earnings the
country would likewise be crippled.
Results OF CONSUMPTION Of Capital.
l would ask those who would &C
further and conscript not only incomes
but capital, to answer the riddle, no;
only in what equitable and practicable
manner they would do 1t. but what the
nation would gain by 1t?
1t Is true that a 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 a time when the regular income tax
In Germany was very moderate as
measured by the present standards OF
income taxation.
Only a trihins fraction of a mans
property is held In cash. II they con,
script q certain percentage of his pos.
sessions in stocks and bonds. what
would the government do with them?
Keep them? That would not answer
its purpose. because the government
wants cash. not securities.
Sell them? Who is to buy them wher
every ones funds would be depleted?
If they conscript a certain percent
age of a mans real estate or mine Of
farm or factory, how is that to be ex
pressed and converted into cash?
Are conscripted assets to be used a,
q basis for the issue of Federal Re
serve bank notes? That would meal
gross imitation, with all Its %attendan
evils. dangers and receptions.
Would they repudiate a %percentag'
of the national debt? Reputation /
nc less dishonorable in q people thai
in an individual, and the penalty TO
failure to respect the sanctity of obi
cations is no different.
The Thrifty Would Be PenaIized.
The fact Is that the governmen
would gain nothing In the process Q
capital CONSUMPTION and the countr
would be thrown into chaos for tn
time being. The mar who has save
would be penalized. he who has waste
would be favored Thrift and cOnstru.
tive effort, resulting n The needful an
fructifying accumulation Of capita
would be arrested an;I lastinglv di
conraged.
can understand the crude notion
the man who would divide all posse
saons equally There would be nigh
little coming to mny n by such dist
button, and 1t Is, Of course, an utter
} impossible thing to do, but 1t is AZ u
: d%erstandable notion. But by the col
f~scation Of capital for government u
neither the government nor any inc
vidua] would be benefited.
A vigorously progressive income L
Z Is both economically and social
< sound. A capital tax IL wholly unsou'
g and economically destructive.
z It may nevertheless become nec'
: cary In the case of some Of the bellig'
' ent countries to resor. tc this expe
ent, but I can conceive of nc situati
a likely to arise which would make
IL necessary or advisable in this count
q More than ever would such a tax
u harmful In times of war and post-h
lum reconstruction. when beyond
most all other things 1t Ia essential
stimulate production and promo
q thrift. and when everything which ter
to have the opposite effect should
c. vigorously rejected as detrimental
at the natior's strength and %well-being
~ There is ar astonishing lot of b,
thinking on the subject of the uses
capital In the hands Of it's owners.