The silver state. [volume] (Winnemucca, Nev.) 1909-1925, 1918-03-16
No Extortion to Be Tolerated, but
Liberal Disposition Toward
Business Needed.


hAuCb 10 DeiuG Sdlu dDOut the pau
slble sounding contention that be
cause a certain portion of the young
manhood of the nation has been con-
scripted, therefore money must also be
conscripted. Why, that Is the very
thing the government has been doing.
1t has conscripted a portion-a rela-
lively small portion-of the men of the
nation. 1t a conscripted a portion
a large portion of the incomes of the
nation. Capital and business pay mor'
than four-6fths Of our total var taxa
ton directly and a large share of the
remaining fifth indirectly.
If the government went too far in
conscripting men the country would be
crippled. If II went too far in con-
scripting incomes and earnings the
country would likewise be crippled.
Results of CONSUMPTION Of Capital.
| would ask those who would go
further and conscript not only incomes,
but capital, to answer the riddle, not
only in what equitable and practicable
manner they would do it, but what the
nation would gain by it7
Ii is true that a few years ago a
capital levy was made In Germany. but
the percentage of that levy was so
small as to actually amount to no more
than an additional income tax and that
at a time when the regular income tax
In Germany was very moderate as
measured by the present standards of
income taxation.
Only a trifing fraction of a mans
property is held In cash. If they con-
script a certain percentage of his pos
sessions in stocks and bonds, what
would the government do with themf
Keep themf That would o answer
its purpose, because the government
wants cash, not securities.
Sell them? Who is to buy them when
every ones funds would be depleted7
II they conscript a certain percent.
age of a mans real estate or mine or
farm or factory, how Is that to be ex
pressed and converted into cashf
Are conscripted assets to be used az
q basis for the issue of Federal Re
serve bank notes7 That would mean
gross imitation, with all its attendant
evils, dangers and receptions.
Would they repudiate a percentage
of the national debtf Reputation Ia
no less dishonorable In a people than
in an individual, and the penalty for
failure to respect the sanctity of obli'
cations is no different.
The Thrifty Would Be Penallxed.
The fact Is 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 lastingly dis
couraged.
can understand the crude notion OF
the man who would divide all posses
sions equally. There would be mighty
little coming to any one by such distri
button, and 1t is, Of course, an utterly
impossible thing to do, but it is an IN
derstandable notion. But by the con
fiscation Of capital for government use
neither the government nor any indi
vidual would be benefited.
A vigorously progressive income tai
Is both economically and socially
sound. A capital tax Is wholly un
sound and economically destructive.
1t may nevertheless become neces
sary In the case 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 a tax be
harmful in times OF war and post-bel
lum reconstruction, when beyond almost
ali other things 1t is essential to stimu
late production and promote thrift. and
when everything which tends to have
the opposite effect should be vigorously
rejected as detrimental to the nations
: rength and well-being.
: There is an astonishing lot Of ham
tIiI King on the subject of the uses o.
canifs in the hands of It's owners.