-V *
LATEST ON LIBERTY LOAN.
Reports Indicate Estimate of $2,800,000,-1
000 is Correct.
Washington, June 18:?The full
extent of the nation's response to j
the liberty loan was still in the realm
of conjecture tonight,although indications
were that the estimate of
$2,800,000,000 would besubstantial
ly correct.
Only four districts?Philadelphia.
Cleveland,Chicago and St Louis?had
reported official tabulations to the
treasury and these were not disclosed.
Atlanta's final compilation.completed
Saturday, had not been officially reported.
From other districts reports w^re
received stating that the work of
making tabulations was still in pro-!
gress. A force of clerks at the treasury
was engaged also in tabulating
the subscriptions sent direct to Washington.
These subscriptions will be
distributed among the respective reserve
banks raising the totals in each
ease.
- * ? 1
No word was forthcoming toaay
as to the approximate time of com
pletion of the werk ET
HE'LL REGISTER NOW.
Negro Preacher Before U S Commissioner
in Spartanburg.
Spartanburg:, June 18:?Fletcher
Griffith, a negro preacher, was the
first man arrested for violation of
the law requiring men between the
ages of twenty-one and thirty to register
for military purposes in this
eountry. He lives near Woodruff,
and for some time.it is said,had been
preaching to the negroes not to register,
as the white people wanted to
send the negroes to France while
they stayed at home. He was arrested
by Special United States deputies, j
and given a hearing by United States j
Commissioner R J Gantt. He stated J
before Commissioner Gantt that he J
was twenty-eight years old and "had
not registered and wasn't going to."
After serving twelve months in the
federal penitentiary this negro
preacher will, no doubt, register.
KILLED IN GAMBLING ROW.
_ R T Pegues the Dead Ma., and Three
Companions Accused.
Bennettsville.June 18?Last night
nine negro men engaged in a gambling
card game and carousal four
miles north of the city, which ended
in a general row. Two breech-loading
shotguns were used. R T Pegues was
instantly killed. Coroner T F McRae
held the inquest and the jury charged
Jim Davis, Eli Green and Morris
Long with the killing. All three are
in jail awaiting court.
Magistrate Gibson issued warrants
for five of the negroes charged with
gambling. All pleaded guilty today
and each paid a fine of $'25. Since the
inquest, it is stated that Eli Green
has admitted that he did the shooting.
^ Big Money in Potatoes.
L is hard to realize the importance
to this section of the Irish potato
crop of this spring. The railroad
men say that it has exceeded in volAo^aswell
as in price any extrava/
Ht expiations that might have
^ indulged Th^vlt is said by those
Ik a position to kno\v~that a reasonestimate
for the tr\l<k farm at
Beach will be a quaver of a
Ml million dollars revenue from that
^ ^^*orop. In the irrigated land the-, re^XiC
Ve a hundred barrels to the
t)ne farmer in the Waccamaw
H Neck section is said by the same au-1
tborities to have make at least $50.^
000 on his potato crop. Potatoes
^ * have been raised everywhere in this
W / lection this year and the yield has
WL/ been immense. At one time it looked
^ as if the farmers here as well as elsewhere
were going to lose a great deal
by reason of their inability to get
barrels, but the Florence Chamber
W ifcf Commerce got active and the supI
pty was secured.?Florence 'limes.
I Yes, Suh!
I "It's this way in the black-land
[ belt now," said the New York EvenI
ing Post's friend from Texas: CotI
ton's so high that a farmer comes
into Dallas, eats a square meal at
one of the best hotels, puts down a
I cotton seed, and gets fifteen cents
change. Yes, suh!"
I Now ?s the time to Advertise.
The War No Passing Effort.
Apparently few people in this country
have begun to estimate the war
at anything like its full significance.
When the war opened it was generally
believed, even in parts of England,
that six months would see its
end. The late Lord Kichener was
roundly criticised when his first public
comment was uttered that the
war would last fully three years.
Were he alive today he would doubtless
feel justified in extending his
prediction two or three years longer.
On this side the public, with only
their hopes as a basis of judgment,
declared it would not only soon be
over.but could never involve the United
States. Time has now prolonged
the struggle into nearly tltree years,
and the United States is itself in the
war. We must not aiiow our own
sanguine hopes, which are steadily
fed with suitable propaganda from
Germany,to longer deceive ourselves.
Germany has today 9,000,000 soldiers.
Our own Ambassador Gerard
tells us that while Germans do not
have as many foods as in peace times,
nor as much,a condition of starvation
there is a very remote possibility.
And he declares the world will look I
in vain for a revolution similar to
that in Russia,at least duringthe period
of the war.
On the other hand, German intriguers
in every country, large and
small, are working at supreme effort
in sowing seeds of discord. Those
who know the South are well aware
of the effort put forth the past few
months in all the Southern States to
incite the colored people to an upris?
- ? ? # iL .
ing against tne wnites, one or ine
many rewards offered being that
laws would be passed authorizing
marriage between black and white,
in that near future when Germany
shall be in control here. That the
colored people of the South refused |
to be disloyal to their country is creditable
to their good sense and patriotism,
but the attempt did not fail
for want of earnest efforts on the
part of our enemies.
While the clash of arms is yet beyond
a wide ocean, the sun does not
set on an idle enemy, whose longcherished
plans of two generations
for world domination aredaily being
unfolded.
A large number of our easy going.
?1- ? ?> 'X 4a VVA Vv l>f O OA I
wfiu assume iu uc uuuiuica uut me
far from it, still refuse to consider
these pians seriously. They are the
same careless thinkers who in August,
1914, confidently declared the
war would not last six months. ? //
II Windsor in the J nit/ Popular Me.
thanics Magazine.
* * ?
The Evils of Constipation.
Constipation is one of the main !
reasons why the average human life J
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material in the liody poisons the i
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nervousness and muddy skin. When j
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King's New Life Pills. They give!
drompt relief, are mild, non-griping!
in action, add tone to your system j
and clear the complexion. At your !
druggist's, 2oc.
The Washington memorial arch at
Valley forge, fa. was dedicated
Tuesday. |
The Beauty Secret.
Ladies desire that irres^'hle
charm?a good
yF complexion. Of course
/ they do not wish others I
to know a beautifier
z^as heen used so they
f y buy a bottle of
Magnolia Balm
LIQUID FACE POWDER
and use according to simple directions. Improve- |
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refreshing. Heals Sunburn, stops Tan.
Pink, While. Roit-ReJ.
75c. ai Drtiggab or Ay mail direct
Sample (either color) for 2c. Stamp.
Lyon Mfg. Co., 40 South Fifih St., Brooklyn, N.Y.
PHTYSTC A L TRAINING
TEACHERS IN DEMAND
Young Men and Women about to be i
graduated from High School should ! [
consider this healthful, useful, dig- { \
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By recent legislation Phybical train- i |
lng Is made obligatory in every j
school In New York and New Jersey.
Penn . North and South Carolina
have bills pending.
Send for Catalog of the only school
of physical education chartered by
the University o.' the State of New
York. (Under ihe Regent*)
THE SAVAGE SCHOOL rOR <
PHYSICAL EDUCATION
310 Wetl t'w' Vriu York City
V
HOW SHALL WE
PAY FOR THE WAS?
A Constructive Criticism on (tie
House Revenue Bili.
LOANS BETTER THAN TAXES
Flvs Reasons Why Excessive Taxes at
the Outset o* War Are Disadvantageous?Great
Britain Example Worthy
. of Emulation?How the Taxes Should
Be Apportioned.
By EDWIN R. A. SELIGMAN,
McVickar Professor of Political Economy,
Columbia University.
I On May 23. 1017, the House of Hep
| resentatlves passed an act "to provide
revenue to defray war expenses and
I for other purposes." In the original
bill as preseuted by the Committee of
Ways and Means, the additional reve
nue 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 expected to yield another $40,000.
000 or $50,000,000.
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 8hould 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 additional war expenses
for the year 1917-18, he calculated that
they would amount to some $6,600,000,000,
of which $3,000,000,000 was to
be allotted to the allies, and $3,600,000,000
was to be utilized for the domestic
purposes. Thinking that it
would be a fair proposition to divide
this latter sum between loans and
taxes, be concluded that the amount
to be raised by 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 all 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 taxpayers in one or two
years bear the burden of benefits that
ought to be distributed nt least over a
decade within the same generation.
In the second place, when expenditures
approach the gigantic sums of
present-day warfare, the tax-only policy
would require more than the total
surplus of social income. Were this
absolutely necessary, the ensuing havoc
in the economic life of the community
would have to be endured. But
where the disasters are so great and
at the same time so unnecessary, the
tax-only policy may be declared impracticable.
Secretary McAdoo had the right instinct
and highly commendable courof<i
in rioHflinc tlinfc n substantial nor
tlou, at. least, of the revenues should
be derived from taxation. But when
he hit upon the plan of 50-50 per cent.,
that is, of raising one-half of all domestic
war expenditures by taxes, the
question arises whether he did not go
too far.
The relative proportion of loans to
taxes is after all a purely business
proposition. Not to rely to a large extent
on looms 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 follows:
1. Excessive taxes on consumption
will cause popular resentment.
2. Excessive taxes on industry will
disarrange business, damp enthusiasm
and restrict the 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.
Moreover, these sources of support
would be dried up precisely at the time
when the need would be greatest
5. Excessiv* taxation at the outset af
the war will reduce the elasticity available
for the increasing demands that
are soon to come.
Great Britain's Policy.
Tuke Great Britain as an example.
During tho 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
dow taxes only 0 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 i?er 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 year It would
suffice to raise by taxation $1,250,000C00.
If, in order to be absolutely on
the safe side, it seemed advisable to
Increase the sum to $1,500,030,000, this
should. in our opinion, be the maximum
In considering the apportionment <sf ,
the extraordinary burden of taxes In
war times certain scientific principles
are definitely established:
How Taxes Should Be Apportioned.
(1) The burden of taxes must be
spread as far as possible over the
whole community so as to cause each
individual to share in the sacrifices according
to his ability to pay and according
to his share in the (ioverncient
(2) Taxes on consumjuiou. which are [
necessarily borne by the community at |
large, should Ik- imposed as far as possible
on articles of quasi-Iuxury rather
than on these of necessity.
(3) Excises should be imposed as far
is possible upon commodities in the
hnmlq nf tho final f-nnsiimor rather
than upon the articles which serve primarily
as raw material fur further
production.
(4) Taxes upon business should be
imposed as far hs possible upon net
earnings rather thaD upon gross receipts
or capita] Invested.
(?) Taxes upon Income which will
necessarily be severe should be both
differentiated and graduated. That is.
there should be a distinction between
earned and unearned incomes and there
should be a higher rate upon the larger
incomes. It is essential, however, not
to make the Income rate so excessive
as to lead to evasion, administrative
difficulties, or to the more fundamental
objections which have been urged
above.
(6) The excess profits which are due
to the war constitute the most obvious
and reasonable source of revenue dur- i
ing war times. But the principle upon ^
which these war-profit taxes are laid
must be equitable in theory and easily
calculable in practice.
The Proposed Income Tax.
The additional income tax as passed
by the House runs up to a rate of 00
per rent This la a sum unheard of la
the hlatory of civilized society. It must
be remembered that It was only after
the first year of the war that Great
Britain Increased ber income tax to the
maximum of 34 per cent., and that
even now In the fourth year of the war
the Income tax does not exceed 4%
per cent.
It could easily be shown that a tax
with rates on moderate incomes substantially
less than in Great Britain,
and on the larger income about as
high, would yield only slightly less than
the ?>32.000.000 originally estimated in
the House bill.
It is to be hoped that the Senate will
reduce the total rate on the highest incomes
to ? t per cent, or at most to 40
per cent, and that at the same time it
will reduce the rate on the smaller incomes
derived from personal or professional
earnings.
If the war continues we shall have to
depend more and more upon the income
tax. By imposing excessive rates
now we are not only endangering the
future, but are inviting all manner cf
difficulties which even Great Britain
has been able to escape.
Conclusion.
The House bill contains other fundamental
defects which may be summed
up as follows: 1
(1) It pursues an erroneous principle in
imposing retroactive taxes.
(2) It selects an unjust and unworkable
criterion for the excess-profits tax.
(3) It proceeds to an unheard-of
height in the income tax.
(4) It imposes unwarranted burdens
upon the consumption of the community.
(5) It is calculated to throw business
into confusion by levying taxes on gross
receipts instead of uj>on commodities.
(6) It fails to make a proper use of
stamp taxes.
(7) It follows an unscientific system
in its flat rate on imports.
(S) It includes a multiplicity of petty
and unlucrative taxes, the vexatiousness
of which is out of all proportion to
the revenue they produce.
?
The fundamental lines on which the
House bill should be modified are summed
up herewith:
(1) The amount of new taxation
should be limited to $1,250,000,000?or
at the outset to $1,500,000,000. To do
more than this would be as unwise as
it is unnecessary. To do even this
n-roiM im m dn more than has ever
boon done by any civilized Government
in time of stress.
(2i Tlie excess-profits tax based upon
a sound system ought to yield about
$300,000,000.
(3) The income-tax schedule ought to
be revised with a lowering of the rates
on earned incomes below $10,000, and
with an analogous lowering of the
rates on the higher incomes, so as not
to exceed 34 per cent A careful cal- I
culatlou shows that an income tax of this
kind would yield some $450,000.OfXv
additional.
(4) The tax on whisky and tobacco
ought to remain approximately as it Is.
with a yield of about $230,000,000.
These three taxes, together with the
stamp tax at even the low rate of the
House hill, and with an improved automobile
tax, will yield over $1,250,000,000.
which is tho amount of money
thought desirable.
The above program would be in har.
mony with an approved scientific system.
It will do away with almost all
of the complaints that are being urged
against the present. It will refrain \
from taxing the consumption of the ?
poor. 1
It will throw a far heavier burden ?
upon the rich, but will not go to the *
extremes of confiscation. It will ob- I
viate interference with business and! *
will keep unimpaired the social pro- J J
ductivity of the community. ! \
It will establish a Just balance be-1 ?
tween loans and taxes and will not! I
succumb to the danger of approaching j J
either the tax-only policy or the loan-' *
only policy. Above all. It will keep an y
undisturbed elastic margin, which ?
must be more und more heavily drawn |
upon as the war proceeds. t
Scott Drug
The 5??X
9 Vnn
Ij"l ' " 1
KURTZMANN
Noted for Its SWEET TOI
Ask or write for prices
wonderful i
Siegling Mi
(Incorp
Charleston, S. C.
Establisl
LUCIEN P. KINDER,
*
Will You Walk I
Now, you thoug
ed to pull off that
the spider and the
the sort. Wemere
our big store to se<
large and varied li
nishings, which w
vkvnnAO Cifv?l/jflTT 1 Tl l/",
OUJL1V/WJ 111 IV
ity. Porch Chair
Rockers, Book Cj
tings, Art Square:
Kitchen Cutlery ai
naware, Lamps a
other articles that
comfort to your h
Steele Fun
! THE WA1
$
1
I J. L. ST
if HAS 1
| Horses ai
For Sale or
X*
I J. 1^. o 1
g Livery, Feed ai
I Lake City,
I 1
. 1
i
do^ Goody!![I f\
ij
Company j
aSJL Store 1
I Kurtzmann ,
II ?Piano? *
W A PIANO THAT IS
?E and BEAUTIFUL
<== 1
i and easy terms on this
nstrument.
usic House
orated)
Florence, S. C. x
led 181Q
JR., Representative.
????5
TTTTTTi
nto Myrariorr |
ht we had start,
old stuff about
fly. Nothing of
ly invite you into
3 for yourself the
ne of House Fure
are offering at
eeping with qual?
Dinino* Chairs.
? - O 7
ises, Rugs, Mat3,
Wall Pictures,,
id Utensils, Chind
hundreds of
will add joy and
ome.
niture Co.
US ON
UCKEYl
BOTH 1
id Mules |
amWa be: ^
UAC11CUL Jil
ucrey!
nd Sale Stable ,{? ;
South Carolina 1