The Big Sandy news. [volume] (Louisa, Ky.) 1885-1929, 1918-09-13
No Extortion to Be Tolerated, but
Liberal Disposition Toward
Business Needed.
Shrinkage Of Values Would Cur
tail Capacity to Provide
SineWS OF War.
transcription Of Men. CONSUMPTION Of
Money" Analysed.
BY OTTO 4. KAHN.

cause a certain ;Iortia:: - .he Sc.ng
manhood OF the nntion has been con.
scripted. therefore money must also be
conscripted Why, that Is the very
thing the government has been doing,
II has conscripted portion--a reia-
lively small portion OF the men OF the
nation. II has conscripted n portion
a large portion Of the incomes OF the
nation. Capital and business pay more
than four-Gfths OF our total war taxa.
ton directly and large share OF the
remaining fifth indirectly.
II the government went too far in
conscripting men the country would De
crippled. II II went too far In con-
scriptlng incomes and earnings the
country would likewise BIO crippled,
Results Of conseriptiOn Of Capital
would ask those who would 20
further and conscript not only incomes,
but capital. TO answer the riddle. not
only In what equitable aud practicable
manner they would do II, but what the
nation would gain by III
I II IL true that few years ago Q
capital levy was made In Germany, but
the percentage of that levy was %
small as to actually amount TO no more
than an additional Income tar and that
at time when the regular income tax
In Germany was very moderate an
measured by the present standards of
Heome taxation.
Only trialng fraction Of mans
property is held In cash II they con.
script certain percentage Of his pos
sessions In stocks and bonds, what
would the government do with themf
Keep themf That would not answer
its purpose, because the government
wants cash. not securities
Sell themi Who is to buy them when
every ones funds would be depletcd7
II they conscript a certain percent.
age Of mans real estate or mine or
farm or factory. how is that to be eI.
pressed and converted into cashl
Are conscripted assets to be used as
basis for the Issue Of Federal Re
serve bank notes7 That would mean
gross Initiation. with all its attendant
evils. dangers and deceptions
Would they repudiate percentage
Of the national debit Reputation is
no less dishonorable In a people than
in an individual, and the penalty for
failure to respect the sanctity of obi
gntions il no different
The Thrifty Would Be Penallxed.
The fact In that the government
would gain nothing in the process Of
capital CONSUMPTION and the country
would be thrown into chaos for the
time being. The man who has saved
would be penalized, he who has wasted
would be favored. Thrift and construc-
tive effort. resulting in the needful and
fructifying accumulation Of capital
would be arrested and lastinaly dis
couraged
can understand the crude notion OF
the man who would divide all posses
sions equally. There would be mighty
little coming 10 any one by such distri.
button. and II is, Of course. an utterly
impossible thing to DO. but 1; il an un
derstandable notion. But by the con
nscation Of capital for government use
neither the government nor any indi.
vidual would be benefited.
A vigorously progressive income tax
u both economically and socially
sound. A capital tax is wholly unsound
and economically destructive.
It may nevertheless become mecca
sary in the cnse Of some of the belliger.
ent countries to resort to this expedi-
ent, but can conceive of no situation
likely to arise which would make II
necessary or advisable In this country.
More than ever would such tax be
harmful In times of war and post-bel.
lum reconstruction, when beyond al
most all other things 1t ia essential to
stimulate production and promote
thrift, and when everything which tends
to have the opposite effect should be
vigorously rejected as detrimental "a
the nations strength and well-being.
There is an astonishing lot OF haxy
thinking on the subject of the uses Of
capital In the hands of its ownera