The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-10-14
This Week the Bonds Must BE Sub
scribed, but Three Weeks From
Now kitchin Must Go.

ecriDed, but Three weeks from
Now Kitehin Must Go.
We shall get through with this
Fcurth Liberty Loan. The American
people at home will be like the Amer
lean soldiers abroad. As long as they
cnn keep on there Is no effort they
will not make; no sacrifice. The last
that Is in them they will do; and so
with this loan, they will go over the
bop. But If the malign influence of
KITcHIN of Scotland Neck, North
Carolina, is to envelop the United
States next year as 1t does this year
We are going to fail with later six
billion Liberty Loans; we are going
TO fail dismally.
II this man KITCHEN has his way
there must be paid right on the heels
Of this Fourth Liberty Loan eight
billions Of dollars Of sectional taxes.
KIrcHIN has taken care that the
great bulk Of these taxes shall come
from the national purse north of
Mason and Dixon's line. KITcHIN,
therefore, will paralyze the greatest
borrowing power in the world; for
borrowing power always depends
upon credit.
When KITCHIy hears Of incomes
whether Of corporations or Of indl-
viduals, running mp to tens Of thou
sands, to hundreds Of thousands of
dollars a year, he falls into a frenzy
of attacking them. Like the horse
that breaks into the oat bin, he sees
only the grain; he reckons nothing
at all of the bottom of the bin.
The rapacious gluttony of the horse
merely kills the horse. The sectional
tax ferocity Of KITcHIN pulverizes
credit, the foundation of the indus
try Of the nation.
The Treasury income tax records
VIII show KITCHEN that In the whole
State Of New York, with q population
probably not less than twelve mill
Ion souls to-day, there were In 1915
only some 5000 individuals having
incomes of $4,000 a year or more.
A sectionally impassioned tongue like
KIrCHIN's says, "Well, what of It?
n there are 10000 such incomes or
only 5000 such incomes, let us take
all of 1t that we can get"
That Is the vision, the thinking ca
pacity, of statesman from Scotland
Week, North Carolina, who Is cha ged
With the inexpressible responsibility
II financing our stupendous war
cut of the production and the re-
sources Of 100000 people.
"Well, what Of IT." Why, Just this:
II business has surplus earnings
above its fixed charges, say, Of $780,
600 a year KITcHIN can grab the
whole 100000. But unless he wants
20 scrap the business right then and
there he can't take any more. II
he grabs the whole 100000 he also
stops all that the business might do
to provide other funds for the Treas
ury; for business that can't show
anything above its fixed charges
can't have any credit. If there isn't
anything to pay back with a safe mar
gin the principal of borrowed money,
Il there isn't anything to pay even
interest, the business cannot borrow
money to put into Liberty bonds; 1t
cannot borrow money to put new
roof over Its own head.
If instead of being devised and
sfmed to strip few thousand cor
porations and few thousand indl-
uduals-there being no more to strip
KITCHENS taxes were devised and
aimed to raise revenue and yet not
10 cripple corporations and indiyid-
uals, they would leave such corpora
lions and individuals a great borrow
ing capacity for their own purposes
and for the purposes Of the United
States Treasury.
A business with surplus earnings Of
100000 has tax paying capacity
Of only $10o,000-all there is of it.
But a business with surplus earnings
Of 100000 has borrowing capacity
OF hundreds of thousands. The same
thing is true of individuals.
If instead Of threatening all surplus
earnings OF specially marked bust.
uesses KrTcHIN took a sane share
there would be available hundreds
or millions, billions, Of borrowing ca
pacity to go into Liberty bonds. II
instead OF taking or threatening the
whole 100000 of a business, for
example, KITCHIN took $4,000 for
taxes the remaining 100000, under
this war emergency pressure, could
nay Interest on 100000, even 81 900.
100, borrowed to put into Liberty
e V