New Britain herald. [microfilm reel] (New Britain, Conn.) 1890-1976, 1922-12-14


| ter have gotten the capital ont Of
the industries, aed the 6overnment
could have gotten h In no better
way. fys
Down to this point. then, there
doesn't appear TO be any real
ground for complaint Of what
these private proprietofs have
done. They have been wideawaks
and enterprising in supplying cef-
tain public demands. II Il should
be said that they might have beea
satis6ed with smaller profits. ~
answer 10 that If profits had been
lower the expansion OF the indvs.
try would have been slower, tie
supply OF products would havs
been smaller, and prices would
have been higher instead Of lower.
Prices are not fixed arbitrarily, and
the best price for both producers
and consumers Is the price at
which demand and supply meet
the price that clears the market.
II the market is above that, . por-
ton Of the product is unsold, aud
II below, the wants of the public
cannot be fully met.
Il will be said, probably, that
this is all very well 90 far. but
that these great properties, thus
created. belong to the proprietor
and that whenever the latter
choose to change this policy a
devoting profits to production they
can do 80, and proceed to with.
draw, divide and consume the earn.
ings thereafter. That is true, and
Is the very point to which We are
directing attention. II 10 only
when private capital ceases to Be
capital. ceases to be used prodpc-
lively, and is converted into some
thing to be consumed by the own
ers, that its employment for publis
purposes ceases.
This being so, what logic Is there
IN disturbing 4 corporation sur.
plus which Is employed In = pro-
ductive industry, for the purpose
Of forcing it out Of that employ
ment into the hands of the in
dividual shareholders1 Thee pol
Icy would be disruptive Of the IN.
dustrial organization, and while h
would procure immediate fands for
the treasury It would BE taking
funds from . public use, rather
than, as fancied BY the advocates
Of the policy, from the service Of
the owners.
TAXATION 4 Necessary IVA
It goes without saying that taxes
must be high to provide the revs-
nues requires to meet the neces-
sary expenses of the government
and the earnings Of accumulated
wealth must contribute very large
". Nothing hesein said i In
tended to ccntrovert this. Il Il Of
great importance however. that h
shall be generally understood that
reductions Of the working capital
of the country make everybody Ia
the country poorer. The wealth
employed In industry i social
wealth, NO matter who owns Il
Not until Il 10 withdrawn for prl-
vate consumption does Il cease =
yield social benefits. The Soviet
reyolutionists of Russia had : the
ory that Leadership IN industry
counted for nothing, and that
wealth under private control wss
Of no value to anybody but the
owners. They were resolved b
bring everyone down - Z commca
level and had their minds 90 -
tentty fxed upon distribut3on tha1 (
they gave NO thought 10 produe-
ton. They proceeded 10 take ont !
Of the hands Of the leaders Of IN
dustry the very means b. which
they were doing their work, and
the result has been the mdAt ter
rible national tragedy OF III his-
tory. The Soviet leaders have
modified their policies wy matsxi-
ally h the past year q the rssuk
of practical experience. Tia sanne
old doctrine, however, u v3de.
spread in the United States, anleI
the clamor for increased taxat3ool
Of wealth is largely By people w.
favor il ~ means Of dlssipatiag
or distributing the accommodations
of wealth that exist. The couueFy
will not be safe from snch pro-
posals until the fundanaantal IA
lacy that runs through III OF tn