New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1918-05-26

AHo SoVSrIuHeIIt mas enLlrely under
estimated the patriotism of the coun-
try and the willingness of the more
prosperous members Of the commu-
nifty to stand for abrupt and almost
revolutionary increases in their in
come tax. 1t is, of course, univer-
sally accepted that the aristocracy
of England and France, and the
most intelligent and prosperous fam
lilies OF America, have been most con-
spicuous in sending their sons into
this battle for world freedom. It is
net, however, fully realized that the
families which are prepared to offer
up their manhood are ready cheer
fully to suffer radical advances of
income tax in order properly to sup
port them in the field. The increase
In income tax should, however, apply
TO individuals and not to the normal
earnings of corporations, as the pur-
pose of the increase is to reduce con-
sumption as we'll as to provide rev.
enue, and corporations generally are
not wasteful consumers of commodi-
ties, and the earnings, when distrib-
uted as dividends, will be taxable
against the recipient. Our present
income taxes in America are trihing
IN comparison with the British
standards. Andrew Bonar Law.
Chancellor of the Exchequer, an
ncunces an increase in the basic in
come tax from rs per cent to 80 per
cent and says significantly that "the
real test of the nations financial
condition would come when the ma
ton ceased to rely upon borrowing"
A clear thinking old farmer-black-
smith, in discussing the financing of
the war, said:
UNLESS we who stay at home pay
to the utmost by increased taxes the
soldier boys will have to pay for this
.world-war twice They are paying
now with their whole future. If we
load down the nation with a stagger-
ing debt, the boys who come back
from the war will have to join with
US in digging the nation out from
under its burden of bonds"
From the standpoint of the man
OF moderate means, who expects to
retire on his savings, the situation
that arises from the present policy
Of ever-increasing bonded indebted
ness, is alarming. His income is
relatively fixed, but with the inf1a-
ton that is forging steadily ahead
ne finds the purchasing power of
that income dwindling away until
investments that formerly supported
him in moderate comfort bring him
down almost to the line of destitu-
ton. From the viewpoint of the
average wage Garner or salaried
man the situation is no less serious,
for the history Ct all mutations shows
that wages advance much more
slowly than commodities which the
wage Garner must consume.
There is grave reason to believe
that the government is not giving
the attention that it should to the in
evitable situation that confronts the
nation as a result of it's policy. Un-
der the circumstances it is up to
the bankers Of America to minimize
the peril, first, by refusing every
credit that it does not contribute
directly to the war; second, by urg-
irg the Federal Reserve Board to
raise its rediscount rates so as to
check the initiation Of currency that
is now surging over the country, and
third, to use every influence in pro-
curing the utmost advance in in
come taxes that Congress and the
people can be persuaded to adopt.
If these remedies are not applied,
and applied vigorously, the socialis-
tic movement that has already de-
veloped to an unprecedented degree
throughout the world will prove al
most irresistible in overthrowing our
present system of government and
economics in the readjustment that
will take place at the conclusion of
the war.