New-York tribune., 1918-07-14

in mind the larger gains that
monopoly makes possible.
Perhaps, then, it is not worth while
just now to denounce the monopo-
lies for profiteering excepting so far
as they are using the war situation
as a special opportunity. Swollen
profits should therefore be discussed
not as question Of monopoly, but
Of business conditions at large.
Nothing, it is clear, can be more
regrettable or call more shrilly for
remedy than the current enormous
gains for private business out Of a
war imposing great and widespread
burden and loss-this burden still
the greater as the particular gains
are the more excessive. The thing
is wicked or stupid.
Perhaps it is both. But what can
be done, and who can do it? Our
fiscal policy pushes prices up. We
get our revenues-in some part we
get them-by processes that in
crease the volume of circulating
purchasing power. This means in
creasing money demands for goods.
Prices have to rise. We regret it.;
and part of the time we look about
for ways to stop it. Part Of the
time we recognize it, acquiesce in
it, and try to adjust ourselves to it.
We allot to the railroads+after we
have taken them over-a 25 per
cent increase in rates, and are ar
ranging to take over the telegraph
business, because it declines to ac-
cede to the union demand for higher
wages-introduce bills to increase
the pensions, for the readjustment
Of wages, approve of new gas, and
water and light, and tram rates,
and promise the farmers $2.2O for
their wheat. Things have to be re-
adjusted, as we arranged that they
must be, when we set about to bor-
row for our military necessities.
But what shall the manufacturers
In general do that are producing the
goods for sale? Are they wicked to
take the higher prices that offer, or
are we stupid to bring the higher
prices about.thinking either that
they will not come, or that coming
they will not be taken? We make
them easy to get, but urge stoutlv
that the business men shall refrain
from taking them. But still I shall
probably sell my potatoes at what
the market offers. This also is the
basis on which my neighbor con-
tinues to supply me with eggs. But,
obviously, his conscience is rudi-
mentary organ.
The fact is that a price imitation
is one form of taxation. The wages
and the salaries have to buy less if
the government is to absorb for the
war a third of our productive power.
The only difficulty with this form
of taxation is that the government
gets so little of the proceeds. 1t
takes the loan-derived new money.
and then buys with it at the rising
prices that are caused by it's way
OF getting it. A good share of what
1t borrows it loses to the benefit of
the people that sell to it at the
higher prices, but who buy labor
and raw materials at prices that do
not rase so fast Thus a large
share of the rising prices that bur
den the consuming public lodges in
the hands of the entrepreneur class
instead of getting through into the
public treasury. 1t is, in very truth
a taxation of the public, only that
IN considerable part, it is tax for
private receipts instead of for pub
lie revenues.
Yes, it is bad; but it is part of
the method--a method that still re-
mans notwithstanding supple
AS a tax-irrespective
of the incidence of it, or of the at
Oendant disturbances and injustices
1T would be all right if onlv tho