Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1920-03-12
BoNDs OR <

BONDS OR TAXES.
Financiers are trying to determine
whether it is better to provide ior
the expenditures OF the government
nv issuing bonds or. by paying taxes.
The problem confronted the country
at the outset of the war, as II CON
frontcd every other nation, n II
was pressing and acute because OF the
unusually large expenditures WhlcA
were inevitable. Our expenditures
are still more than normal, because
new demands arising cut OF the Wal
present themselves from time to'tlne'
and they must be met.
About the beginning of the war
period there was a lot OF loose Talk
about the CONSUMPTION OF weaun.
The term was a round, mouth-filling
one which might mean much or little.
The fact is that all taxation is con-
scription of wealth. The nation de-
cides on how much money it needs
and lakes it. The volunteer element
does not enter into the payment OIL
taxes. Neither the rich man nor the
moor man is asked how much. he is
willing to pay. He is ordered to pay
and if he fails to produce his properly
is taken from him.
But ahose who prated most loudly
about the CONSUMPTION of wealth.
wished it to be understood that they
advocated the collection OF val rev.
nue. solely from the wealthy, and
Mr.. Townley, among others. went
about the country telling his audi
ences that because this was a rich
mans war, and the poor mans son
was conscripted to fight in it, the
i rich mans wealth should also be con-
%scripted. Townley lied about the
whole subject, because he sough. de-
liberately to create an impression
which HI knew to be false. He
knew that the same regulations which
Frequire the service of the poor mans
son in the war applied equally to the
,,rich mans son. There was no diff
ference.
There was a difference, in the mat
lter Of taxation. Very properly the
hea3mr burden was placed on the
frich man because Of his superior
Labf6ty to pay. The greater the indi-
tvidnaI's possessions the more he was
required to pay, not merely in the
gross amount, but proporfaon1teiy
THE demxgogue. declared that the en-
tire cost OF the war should be exact
ed from those who quite arbitrarily
she classified as rich. Some OF these
aKitaturs Unlisted that such confisca'
fstiorr shou1d be used instead of th<
tissue Of any bonds whatever, the en-
ttire cost Of the war being collected
lin immediate taxation Of this char
nacher.
IT was obvioussto all reasoning be
ines that such a policy would hay'
tbeen fatal to the entire country. Th'
welfare of al our people, no matte
what their station, is dependent OF
the orderly progress of industry. In
dustry requires the effective use o
ts1abor and the intelligent utilization
OF accumulated wealth If the pro
posed method lac been employed
Z GtcIS LII OItdAAl A1luuSllS "OaAu hoS
become bankrupt, and h entire &C
~tivities of the country would hav
ONE to a standstill.
It was generally accepted
sound principle that as much revenu
should be collected through cu-rer
taxation as could be collected with
out imposing prohibitive burdens o
industry and hat the rest should b
borrowed by means Of the sale {
bonds.
Tha. principle applies today. Thel
is no question that both bonds ar
taxation are necessary. The questio
is in what proportions these NEAR
nay most usefully be employed. 4
an indication of the difference {
opinion on this subject we have IL
late secretary Of the treasury u-gir
the sale Of more bonds as a e
caring for a larger share Of our OBJ
cations, and the present secretal
advising strongly against this cours
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