The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1919-08-31

! pciatu WAS 3,uUV,UVV,UVV, Dul Il
considerable part OF that was mere
llai--a book credit Obtained by IN
fltion OF bank credit& A. c. Mil
| Ter. OF the Federal Reserve board.
has said that the AMOUNT OF gov
eminent paper carried by the
bnnksNin one way or another and
representing initiation OF credit
might be AS much as $1,000, ,O0O,-
600
A It happens. 1900, 900. 900 is
about the amount OF war taxes
paid in the period reviewed by
Secretary Glass-or "A sum about
equal to the probable imitation OF
credit. This Initiation undoubtedly
imposed "A tax on consumption by
raising the prices OF comm ODDITIES.
The nation needed more credit
than its savings amounted to and
resorted to an oyerdraft that
reacted adversely on cost OF living
imposed heavy tax on con-
sumcrs. In short II may plausibly
be held that the amount OF the
orerdrnf, or OF the Initiation. IN
more important for the mas OF
the people than the proportion be-
tween the sums raised by taxation
''''N 'f W. "" '''k III oNIlti Wbiu uNs
the lower taxes and no initiation
would. in the long run. have made
the war actually less costly to the
mass OF the people. And It Is most
likely that decidedly higher taxes
would, by the burden imposed on
production. have made the war
actually more costly TO the mass
OF the people.
Unless you are quite sure you got
the full Significance OF that stale
ment you should read It again. II
Is vital, and II goes directly TO the
heart OF the whole matter infln.
uon OF credit and unwise taxation
together. constitute another great
cause for the high cost
OF living
A Theory Exploded.
1t has been intimated In various
quarters recently that an inflated
currency caused by the utterance of
a vast volume OF federal reserve
notes, contributed greatly to exist
ing conditions. Investigation dis
closes there In little ground for this
belief II In true that there has been
an increase In the per capita circu-
.aton, but no, sufficient TO account
Tor the Increase in values. The fol.
lowing figures are official:
Per capita circulation
July 1914 ........ S5453
Pe capita circulation
August. 1919 ..... 45.l6
Federal reserve notes
outstanding August
J. 1919 .......,.S2,504.753
There In evidence here OF very 1T
la lnflatiAn Ia, 4
dollars OF fiat value represented in
government paper uttered and
forced onto the banks Is to be dis
covered the ny In the ointment.
The Part Taxation Plays.
As to taxation. At the time we
were setting about financing the war
here were two vigorous frames OF
mind The one urged a ConsCriptlon
II wealth, Just as We were con
'cripting men The argument was
based on the modern spirit. II men
'ould be forced to sacrifice their
Ives for their countrys protection,
hen surely men II vast property In
erests could be forced to contribute
cOnsiderabl share of their posses-
lions for the protection OF the coun-
ry.
The other-nnd older school OF
economists urged the creation OF a
ong time debt. to be represented by
ow w-inlerest paper
The result was somewhat OF
The proponents OF
OF wealth were led
way from that tenable position and
ncouraged TO embrace policy that
contemplated raising by Immediate
aNatlon a very considerable portion
4 the financial burden OF the war.
he remainder was to be raised by
northern bonds at high rate Of |
interest.
Economists Take Warming.
Practically every economist OF |
.billty and experience warned |
.gainst this system. II meant. as
vas Instantly pointed out, imposing 1
burden on commerce and industry /
hat was bound TO result In an ar
lficial condition OF great inequality |
here Is a vast d iL6ereHce between |
OF wealth and the tm-
position OF excessive taxes. In the
irst case II 10 possible to take A
ertain per cert OF existing property |
"A per cent OF the principle. This |
annot be passed on 10 an ultimate
onsumer. In the second case IL II
merely laying an excise against the
1come OF invested funds. the pro-
ceds ~ business And this cost is
lways passed aon and on until It
inally rests on the consumer. The
onscriptIoK of wealth, or property.
I proportion TO It's interests In gov
rnment, was not and Is not an alb
lrd proposition, measured by po-
teal economy and the enlightened
piuion Of the twentieth century.
the government had said TO the
IAN OF great wealth: You must
ay towards the conduct OF the war
nd the preservation OF tho govern
ient twenty-five per cent OF your
no violence would have
cen done to either economies or
'gics. The man would have been
,rced TO pay and stand the assess
.ent
Passing the Buck.
But when government said you
ust pay a certain per cent OF the
come from your investments. the
lsincss conducted by those invest
ents was Immediately saddled with
n increased overhead. prices went
p, and the assessment passed on
the ultimate consumer.
This Is the scientific fact concern
z excessive tax liens. II Is peculiar,
.at against an ordinary and ree