Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1919-07-06
PROPOSE CAPITAL
LEVY TO PAY Debt
Many British Firanciers Believe
This the Remedy for Money
Troubles.
QUESTION OF BOOKKEEPING
War Obligation of Empire APP
pears to Be Primarily Cues
ton Of Distribution.
QUESTION OF BOOKKEEPING
ny =. W. rI:rIiIck LAWRENCE.

ny =. W. rETnICI< LAWRENCE.
LpNDo:. July 5.--Advocates OF a
for Commission OF Inquiry. for they
are confident that the more the sub
jet is examined the more convincing
Viii Become the need for this mar,
tlcuiar remedy, Opponents. on the
other hand. seem rather shy of hay-
ing IL discussed. Perhaps they hone
10 kiii !, by contempt. but IL so hey
are not likely TO succeed for the log ic
or the natural finances is forcing II
into consideration.
:, The dominan, factor in the problem
is the failure TO balance the accounts
IN any other way. Mr.. Chamberlain
processes To make ends meet IN lie
normal year. but even on his own show
ing ne does not do 50, for lie includes
among his revenue f50,o0oooo $3.50
O".Ooo) from tho excess profits dufv
which he admits must no, be regarded
as "A permanent form OF taxation
Further than this. he takes !: total
nEurc Tor army. navy. and air force far
beiow that which tho spending depart
mcnta are likely TO tolerate Lastly
he makes II" allowance for various
items Of social reform which viii Ger
tainly be insisted upon.
Gaping Deficit In Fund.-.
!, Taxing All these into account. there
- gaping deficit III che normal year.
the present basis Of taxation is
adhered 10. Of At lcas, Ei0G.ooo 900
ana perhaps nearly s2oo, 900 900.
10. ~ Is quite clear. therefore. that un-
ordinary iaaiion Will have TO be IN
I :, Ahd this Increase will have
attempting TO bridge al gun by fanSv
proposals. which. whether good or had
III lhSmsc!vcs, can only produce few
hurdrchs OF thousands OF revenue
me main source will have T., be ths
income tax Already the pr!ncipal r,,e
OF this tax stands at the terribly hi,sh
nsurc OF es 72 cents in the pound.
md the Chancellor is evidently ,snnrI
ms 10 have 70 increase the rae IN 80,
me reform likely TO be reconm.n,l.d
ny the Income Tax Commission There
10 - .he dehcit Is to be ;nndc good
ny ordinary taxation the Golatry silI
have 10 face an SIS or los inca,nn
,ah, WIN supertax in addition Those
NJ aejst. htro'c measures are asked
" tohhloer no" serious dcterrcn, m
,sertion this heavy incorn. tar - ~,
~ TO prove. .
MIKE balance Po,.ible.
10 M max o.'ee' or z levy on capital is
budSet by clearing out of the way Tho
charges on the national debt. When
.heE are thinking of national finance
,hey say that II represents the ,nnnsv
Iost In the war and IS a liabil,ty ~
which the country as a whole $ mora
, ,man !, was before. When hey are
assets. "'o"s '.elr
The truth Is thatjhe war debt ron.
resents in the main cbanra -, az,
tribution rather than in amoI,n, nr uts
total wealth OF the country asa W,t ne
Al that part OF IL which is held in.
sccnan, appears on both sides OF the
account only the part OF IL whi.b &c
held by foreigners mus, be rec;,an., 20
as dead loss TO the country as a
Problem OF Distribution.
While IL is true. thercfore ~, :. -.
.ssutt o. inc war has been 10 rcdura
me aggregate wealth Of the country
s 20 rs sna, natd work Will be required
ZEN OF meeting tho national debt is
ou ,S,,. hu, Of distribution.
IN. rer,.ari, are IN tanGie because
MAKES OF our own individual weal,b
! subject to the vast sum owed Nv
~ oFe n.ate. Tor which We. as citizens
,ohS as We go on meeting this labiljtv
ny paving interest on il ont o. in
come ne unreaiitv viii! remain: when
diF,dins up the joint liability several
~ between us We shall clear IL m
Must Face Facts
sne state were company which
ture which was not represented nv
material assets We should apply 10
me court for permission to write off
s sas part. OF It's capital 70 which no
farther and write down the nominal
value Of our shares For in business
We sec the advantage OF making the
representation Of the facts correspond
TO tho facts themselves In tho GOV.
rrnment of tho country. so far. we
rave preferred the ostrich-like policy
OF pretending that our wealth is very
different from what it is.
Viewed from this STANDPOINT. many
or the difficulties which minimizing
persons see IN capital levy disap
pear. The impossibility OF securing in
cash AT one time the whole sum of
5000 900. oon-s3o 900. 600 900. the fol.
10y OF reducing the material capital or
the country ut tho time capital is
most needed. simply do not arise on
!ne bookkeeping transaction. which
involves in the main merck the trans
ference Of the title deeds of wealth.
DsIhcult!eS. OF course. there are but
'heF hr" by no means insuperahIe
ana go "~ohably far less tban tI,o.c
Wh'ch have To be encountered in
.nv method of nnatint, 10 -
state