The Washburn leader. [volume] (Washburn, McLean County, N.D.) 1890-1986, 1918-01-11

scription" of capial, and it is we'll to
have a clear Idea of what is meant,
and of Just what it is practicable for
the government to do in this respect.
The phrase is often used as though
the authority of the government to
take property as it takes men was
disputed, and with the implication that
capital is spared through influence
or favoritism.
This idea Is due largely to mista-
ken conception of capital, and of the
service which capital renders wheth-
er in public or private hands. The
capital of the country does not exist
in forms that permits of its being
seized and turned into the treasury.
Capital exists for the most part in
productive property, /. e., In farms,
mills, railways, machinery, and all
: the equipment for carrying on indus
try. The greatest service to the
country from these properties Is OBJ
tanned by having them operated with
the highest possible efficiency. The
government doesn't want property in
- these forms, but the products that
come from them. It would be great
boon to have production increased
and disaster to have it generally de-
creased.
The seizure, or CONSUMPTION, of
these properties in the sense of TAX
ing them out of the hands of the pre-.
sent owners is utterly impracticable.
The government could not assume
their management. 1t has no staff
competent to operate them. If it
took them over it could do no better
than arrange with the present owners
to go Or operating them. 1t would
have to make terms which would On
able the management to satisfy wage
earners, provide working capital to
buy materials and supplies, and make
repairs. requirements, improvements
and 1nlargements, as these were nee
essary to keep the industries up TO
the highest efficiency
In short the "conscription Of cap
ital," when reduced to practical terms
means the fixing by governmental
authority of the terms under which
private property and private manag-
erial ability will be devoted to pub.
lie work. This is being generally
done. In some cases fixed prices are
agreed upon, in others the govern.
ment pays cost, plus a percentage
for the services of plant and organi-
zation. In some instances the latter
is the only practicable plan, but its
weaknesses are we'll known. Ex-
perience has always shown that as
a general rule the best results arc
obtained under the private manage
mentspf industry. 1t gives an incen-
tive 10 individual effort, stimulates
efficiency and promotes progress.
The seizure of properties by the
government would not put money in
the Treasury, or increase the supply
of what the government wants. A levy
Of taxes 80 heavy that it could not be
! paid out Of current earnings would
reduce the working capital Of indus
tries at time when they need it all,
compel them to borrow while impair
ing their credit, and in many instances
force the sale Of properties on a mar
ket without buyers. In short, it would
bring ruin and panic upon the country.
demoralize industry when the country's
salvation depends upon the industrial
output, and destroy values at q time
sustain confidence. 1t would be liter
ally killing the goose that lays golden
eggs. Nothing can take the place of
men In the armies, and rich and poor
alike are conscripted for that service.
2 but capital in the form of productive
property must be used as it exists
andsmuBt be handled by people who
! know how to produce results from it.
''ConEcription" cannot be applied to it
i in any other sense than as applied tc
current earnings, and enough Of cur
rent earnings must be left to finance
# the business adequately; otherwise
efficiency will decline, production will
. fall on. the ability to pay taxes will
diminish. and the war power Of the
1 country will be lowered. :. i =.
Private Capital Does Public; Service
&. The fundamental. error Of those who,
can for the "conscription of capitaP
is III not. comprehending that private:
capital engaged in production for the.
& government on for. the public market:
e is rendering the same service as.
Il though 1t was publicly owned. and
probably rendering It more econom.
!. 1caliy.. The assumption that the gov