, 1921-12-29

ment you must encourage men to en-
ploy thair wealth In industry.
The eIeess-nroffts tax and the
surtax were taken from England At
. time when tia results could not be
ascertained. But after trial OF
more than four years in this country
and = lonEer period in England they
have proved absolutely inefficient
and q great deterrent. A continue
ton means = oonfiscstion of all
wealth and . condition in industry
closely akin to that of Russia.
"A remedy for this situation has
been urged frequently. but It has al
ways been opposed by the demago8ue
and certain 6tocs. 80 called, who will
appeal to prejudice Of the people
through the cry Of Soak the rich
This II particularly true Of the
'farmar' bloc INT the labor bloc
who seem to be absolutely Indifferent
to Soak the rich.' ignoring the fact
that It has Withdrawn from industry
and agriculture the necessary capi-
tai. and in Consequence everyone has
suffered. The remedy they suggest
Is 4 constitutional amendment al
lowing the Federal Government to
tax all ta1-exempt securities Of the
states. counties. and municipalities,
something impossible Of accomplish
,ment because the States will not
a8fee to having an additional bur
den placed upon them through the
increased rate Of interest at which
these bonds will have to be market
ed. and in addition. State rights
would absolutely 30 into the discard;
. very dangerous and impossible
situation.
Investigation will show, however.
that money is not being invested in
tAx-exempt securities for the purpose
Of escaping taxation so much as it
is to secure q perfectly sound and
safe investment. and that a man to-
day. although he may see possibilities
OF = much larger return in industry
or public service activities. realizes
the risk and prefers to take the
smaller return rather than lose his
principal.
How many have invested in stocks
and bonds supposed to be perfectly
safe and sound. and have during the
past Two or three years had their
dividends cut materially or discon-
tinued entirely! How many. in view
Of experiences, are willing to take
q chance OF losing the accumulation
Of thrift and industry over a long
period Of years and invest those saw
in9s, due In many instances to sacri-
! fices OF all lu1uries, and in many in
stances reconsideration many are
willing to put those savings into
such an uncertainty as business.
which. under the present Law. Is sub
ject to a tax for beyond anything
that you or experts employed for that
purpose can read into the law. and
far beyond the safety Of the bust
ness?
Here Is q warning: Ten years
ago the Legislative branch OF the ma
ton, undertook. and successfully. to
bankrupt the railroads, and they did
some Job. They would not allow
them to make enough money to pay
back the money they borrowed. or to
keep up the railroads and the result
Is that today 80 per cent OF the rail-
roads are in q bankrupt condition.
Today the average business con-
Germ Is in this position. OF all they
make this year practically one-half
OF 1t will have to be paid to the Gov
eminent in taxes: OF all the income
they make this year one-half Of it is
owed to the Government o taxes. so
that the average business man in the
country when he settles up his BUSH
ness at the end Of the year will have
nothing out of the years business.
To-day not the executive but the
legislative branch Of the Government
is doing to business and to the people
who employ labor, and to the bust
ness men throughout the country,