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HOW SHALL WE nau ran tup tivann rAT 1-URintVfAitr A Constructive Criticism on the n n*ii House HeviHiue but. LOANS BETTER THAN TAXES ' / Five Reasons Why Excessive Taxes ?( the Outset of War Are Disadvantage* ous?Great Britain Example Worthf of Emulation?How the Taxeo Should Be Apportioned* By EDWIN R. A. SEL.GMAN, McVickar Professor of Political Econ omy, Columbia University. On Mpy 23, 1917, the House of Representative^ passed an act "to provide revenue to defray war expenses and for other purposes." In the original bill as^presented by the Committee of Ways and Means, the additional revenue to be derived was estimated at $1,810,420,000. The amendment to the income tax, which was tacked on to the bill during the discussion in the House, was expecfed to yield another $40,000,/VTkTk fWV* UW UX" ^OU,VW,UW. In discussing the House bill, two problems arise: I. How much should be raised by taxation? II. In what manner should this sum be raised? I. How Much Should Bo Raised by Taxation? How was the figure of $1,800,000,000 arrived at? The answer Is simple. When the Secretary of the Treasury came to estimate the Ldditional war expenses for the year 1917-18, he calculated that u-icv wuuiu aiuuuut tw bwuic ^u,uwr 000,000, of which $3,000,000,000 was to be allotted to the allies, and $3.6^0,000,000 was to be utilized for th^ aomestic purposes. Thinking* thai It would be a fair proposition to divide this latter sum between loans and taxes, he concluded that the amount to be raised bj taxes was $1,800,000,000. There are two extreme theories, each , of which may be dismissed with scant courtesy. The one is that all war expenditures should be defrayed by loans, and the other is that ail war expenditures should be defrayed by* taxes. Each theory is untenable. It is indeed true that the burdens of the war should be borne by the present rather than the future generation; but this does not mean that they should be borne by this year's taxation. Meeting all war expenses by taxation makes the ^xpaj^rs in one or two years bem^tbe bnsien of benefits that ought to jfe distributed at least ov^r a : decade within the same generation. In the second place, when expendi-; tures approach the gigantic sums of iniiAOAnf /I a tt tro?fonn flia fot_anltt HaI. ! I'1uocul"uaj nanaiu? iuv ta^-vuij pvi- i icy would require more than the total .surplus of social income. Were this .-absolutely necessary, the ensuing havoc in the economic life of the communi>ty would have to be endured. But ?where the disasters are so great and at the same time so unnecessary, tht tax-only policy may be declared Im ! practicable. ^Secretary McAdoo had the right instinct and highly commendable courage in deciding that a substantial portion, at least, of the revenues should , be derived from taxation. But when lie hi* upon the plan of 50-50 per cent., +hnt i?s of paisinsr one-half of all do mestic war expenditures by taxes, the question arises whether he did not go j too far. / j The relative proportion of loans to taxes is after all a purely business proposition. Not to rely to a large ex- j tent on loans at the outset of a war is : a mistake. Disadvantages of Excessive Taxes. The disadvantages of excessive taxes at the outset of the war are as followst 1. Excessive taxes on consumption will cause popular resentment. 2. Excessive taxes on industry will disarrange business, damp enthusiasm and restrict ine spirit of enterprise at the very time when the opposite is needed. 3. Excessive taxes on incomes will deplete the surplus available for investments and interfere with the placing of the enormous loans which will be necessary in any event. 4. Excessive taxes on wealth will cause a serious diminution of the incomes which are at present largely drawn upon for the support of educational and philanthropic enterprises. 1 Moreover, these sources of support would be dried up precisely at the time when the need would be greatest 5. Excessive taxation at the outset of the waf* will reduce the elasticity available for the increasing demands that are soon to come. Great Britain's Policy. Take Great Britain as an example During the first year of the war she increased taxes only slightly, in order to keep industries going at top notch. During the second year she raised by new taxes only 9 per cent, of her war expenditures. During the third year she levied by additional taxes (over and above the pre-war level) only slightly more than 17 per cent, of her war expenses. If we should attempt to do as much in the first year of the war as Great Britain did in the third j'ear it would suffice to raise by taxation $1,250,000,. 000. If, in order to be absolutely on the safe side, it seemed advisable to increase the sum to $1,500,000,000, this should, in our opinion, be the maximum. WHY INDIVIDI - ? By George W. Perkins. i i "Individualism" is as dead as a smelt. j rhat is my contention. In this country we hare been living ! in an age of the utmost freedom to the individual. It has been the individualistic period. In the early days, when instantaneous intercommunication did not exist, when I education was meagre and science unI developed, what the individual did wa? af comparatively small consequence, for his deeds did not reach very far and did | aot affect many people. i With intercommunication drawing the world together in one centralized i community, the act of the Individual can affect a large number of persons; therefore, that form of freedom which la simply another expression for license to do aa one pleasea can no longer exist. Society is finding it necessary to take away much of what has hitherto been called "freedom of the individual." In Lii) IUJ? J/iVV-tOO iO vuy AAA 4iC infancy. Until recent years little broad thinking was given to this problem and differences were settled on the basis of "might makes right" All this is rapidly changing and we are entering a period of new industrial relationships. In volt judgment we are just now entering a period of copartnership, where the tool user will be part tool owner and where capital and labor will share more equitably In the profits of the business in which they are Jointly engaged. This advance is inevitable because of our educational system, which teaches the workingman to think for himself. It is Inevitable because strikes and lockouts can never be settled satisfactorily or permanently by merely raising a man's wages. No mere increase in wages can ever satisfactorily solve this problem. It can be solved only on the basis of profit sharing. By profit sharing I do not mean bonus giving. Profit sharing can be done satisfacto rily only when the business concern makes public its transactions, so that the laborer and the stockholder can know as much about the business as does the manager himself. In the adjustment of difficulties between capital and labor I am confl' i-at that open book* will accomplish much more than open shops. About the only goal we have had has been the almightv dollar. The first question asked when a man dies is, l "How m;;cb was he worth?" with I MRS. SUE HENRYDeath Claims one of Lexington's No blest Women. Miss Sue Henry of the Countsvilk section of this county, died at he] home on last Sunday morning, aftei several weeks of lingering illness, ir the 77th year of age. We seldorr m^ct a nobler christian woman anywhere than was M.ss Henry, whicl was attested l;y h t number of sorrowing relatives and friends from distanj parts cf the county at her lunerai ai her late home on Monday morning, in | % ^-' " *: jj, wmWm ^91 P | WAL HER GLASSES EM People who cannot see clearly at glasses, are at a disadvantage. Frequently hey are embarrassed acquaintances. And constantly tb< removing their glasses?or fussing KRYPTOK Glcsset, KRYPTOKS (pronounced. Cripto the crystal-clear lens. You can ms or far. KRYPTOK Glasses give you the* of the seam or hump of old-style hi TOKS are double-vi>ion glasses be I smooth. O. L. WALTEF 1221 Main Street JALISM IS AS Dt ' ':^ ^ '''' f scarct?i.v .4 tu f?" much lie did for his community or hjfountry. But what has it all a moid to? On the whole, the iiidi van 11st lc a?e has not been a aucceas. j^er for the individual or the eommnjty In which he has lived, or the nata We are, beyond quenti^ientering on a period where the wclf^of the community takes precedence lr the interests of the individual amfbere the liberty of the individual wile more and more circumscribed" for th pnefit of the - community* as a whole. Our only decoration almighty dollar?is receding into ^background. The man of except! ability, of more than ordinary tA' will here? * ?-i- ie~_ v:._ i after k>ok ror nis rewarwwf uis uauors, not in one directiomt in two:? First?and foremost?i?>mc publicwork accomplished and.*5oudarily, in wealth ac?] 11 ired. 1 One reason why I aptrongly for < universal military trairf is that it develops in the youth Sense of all 1 around responsibility to frountry. not only in time of war bin time of peace. 1 1 In re-?nt years vre hnw>en hearing ' I a great deal at.out govern owner- ] ' shio of oT:r "V 1 . * V terment being in the old ^ard fam | ily burying ground near Mome, be- j . side her husband, Gilbertlurv. who i preceded her to the gravdr$iy years! ? ago. Mrs. Henry belong i one of r th most honored and ref td fami-! p lies of this county aid he?f left no!' i scial, religious or h?me cbis unper-j ( i formed even to th< uttel si She i [ . early in life becam< a {r of the'' j T/jtheran church aid so|jd a con-j . sistent member to ier d&j t She leaves one ster, ?'\S. P. | tlWingard, surviving tei'ars her - senior, and four cildreij iss Nina, ?. V }Li f pay I * I TER'S J 1BARRA5SED J ji. j a distance, through ' fladirg K; by failing to recogrbz ?*Vand fi y aie annoyed by th? :ss*y of ? wiih two pairs. J I the Invisible Bif< * ] I eks) combine near anjy:*si*fa in tantly adjust yi ur ViW^-jnear ? e advantages withouff rawback ? - -It KB VP. | Iochi>. :\o one can ? cause their sui faces j^ear and If i OPTICJCO. I coluks. c. 11 IAD AS A SMELT ,\U. r '' Government ownership of railroads may be as desirable in this country as it is in Germany, but we must first have public servants who will at least come somewhere near the standard of Germany's public servants in efficiency and honesty. Centralization is the order of the day. The telegraph, the telephone, the automobile and the airship are the causes. They have wiped out not only old precedents and customs, bnt State and national lines as well. A man living in Boston who wishes to talk to a man living in San Fran cweo simply rings a bell, puts a little instrument to his ear and proceeds to talk. There is hardly a miracle in the Bible more wonderful than this. The doctrine of "State rights" is being rapidly demolished. The State, viewed as an individual with the right to do as it pleases within itself, without regard for other States, can no longer be tolerated.. We must therefore take on a new nationalism. The mighty changes taking place in Fhirope tell us with unmistakable voice that the reconstruction period is at hand. Fhe man of the future must realize it He must not look hack to the setting but forward to the rising sun. TTi Ac T orirJ T M%.r. 7\ f ? xuvo* *j , anu */ viiai ico unu iUl d* aUcI" ry Fulmer of near Hilton. The three former still make home with her and are all among the most honored of the community. Miss Nina being one of teachers of the State and Mrs. Fulmer also is well known and honored among the best of teachers, while the two sons, Thomas and Charlie, are equally as successful at farming. 11 WEAVER I TTIillTiill U The Wi I a ' S *..* O f I *~ ' ----- "~_ pHKjj ?y? ?"T? 'tfM "The Weaver rr.eets every requ tive degree. It 1 orable sonority ar tion and the pe'T< an aristocrat amc You don't have to be ; <-> /-I ah win ? ?/> vy cavci aau ulxicjl fjxaxxu Weaver Piano, if yo is the choice of the musical CUT OUT AND MAIL Weaver Piano Co., York, Penna. Gentlem*>n:---Send me particulars Igarding your special Factory Propc An Piano Name v Address Rt _ _ Make X after one interested in. Piano PI. 8?at??CM??ML???a??tij? I i i WITH THE SICK IN THE TOWN AND COUNTRY, j i Mrs. Henry B. Oxiner, who was in-' ! disposed for several weeks at her jhome on the Cherokee Road, is now; | abl to be up and attend to her domes-1 {tic duties. i Subscribe to The Dispatch-News, j Wood's NEW < Ruta Baga am All Populai Purple Top Yellow Rut Ruta Baga, Sweet German, Globe, Early Red or Purp Tv._u. A1 -1 i^utcn, i enow ADeraeen Globe, Cow Horn, White Ej j Large White Norfolk, "H standard varieties of Turnij: Radish Seed for Fall ar Bean Seeds and Early C vegetables. Stock Beet, Dwarf Esse Seeds. True to Name and i i ! *f r Harmon i LEXINGTOl IPRIGHT GRAf Drill's Best Upright 1 Lambert Murphy is Amei and with the Metropolitan 0 has made a continual succes concerts given in addition t ments have endeared him to A * TT f il TTT America, ne savs 01 ine w < ?/ Piano with its distinguishable irement of the piano virtuoso tc las the poetic wealth of tone col id brilliant fulness of clear, acc ect balance of its registers, whi >ng the artistic pianos of the pr< an artist to appreciate the diff >s. Your favorite music will s< u will listen we will show vou %/ [ family as well as the Artist. \ ,, Weaver Pia sition Establishe r j i it * a ayer factory ana wain utiic 2BBBgBaa^iaaaBBBaBMa SEVEN TEACHERS ATTENDED The summer school for State high school teachers which was neia in Columbia, was attended by seven of the teachers of the Lexington High school ?W. E. Black, Misses Ellen Hendrix, Ethel Dreher,t Lula May Epting, Kate Shull, Mary C. Wingard, and Mrs. Bessie Black. Ferry's CROP 4 t i turnip oeeu r Varieties ;a Baga, White Russian Purple Top and White le Top and White Flat and Amber or Yellow yg, Extra Early Milam, ome Raised" and other ) Seeds. id Winter Planting. !orn for late crop table ;x Rape, Vetch, Clover Reliable Seeds )rug Co. % s. c. I n> piano] Piano ? rica's foremost tenor 1 peraCo., New York, 1 s. His recitals and I o his opera engagethe music lovers of 1 ( eaver Piano: | individuality ) a superla- : or, that honurate vibraich make it 1 ^sentday." I r\ ci cncc uct v\ ccn me ound better on the I | why the Weaver j I no Co. Inc. I I d 1870 I I TTAnrr tx < e YUKK, FA. | |