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diff --git a/.gitattributes b/.gitattributes new file mode 100644 index 0000000..d7b82bc --- /dev/null +++ b/.gitattributes @@ -0,0 +1,4 @@ +*.txt text eol=lf +*.htm text eol=lf +*.html text eol=lf +*.md text eol=lf diff --git a/LICENSE.txt b/LICENSE.txt new file mode 100644 index 0000000..6312041 --- /dev/null +++ b/LICENSE.txt @@ -0,0 +1,11 @@ +This eBook, including all associated images, markup, improvements, +metadata, and any other content or labor, has been confirmed to be +in the PUBLIC DOMAIN IN THE UNITED STATES. + +Procedures for determining public domain status are described in +the "Copyright How-To" at https://www.gutenberg.org. + +No investigation has been made concerning possible copyrights in +jurisdictions other than the United States. Anyone seeking to utilize +this eBook outside of the United States should confirm copyright +status under the laws that apply to them. diff --git a/README.md b/README.md new file mode 100644 index 0000000..5851f5c --- /dev/null +++ b/README.md @@ -0,0 +1,2 @@ +Project Gutenberg (https://www.gutenberg.org) public repository for +eBook #51055 (https://www.gutenberg.org/ebooks/51055) diff --git a/old/51055-0.txt b/old/51055-0.txt deleted file mode 100644 index 13a3e1b..0000000 --- a/old/51055-0.txt +++ /dev/null @@ -1,1209 +0,0 @@ -The Project Gutenberg eBook, Frenzied Liberty and The Myth of "A Rich -Man's War", by Otto Hermann Kahn - - -This eBook is for the use of anyone anywhere in the United States and most -other parts of the world at no cost and with almost no restrictions -whatsoever. You may copy it, give it away or re-use it under the terms of -the Project Gutenberg License included with this eBook or online at -www.gutenberg.org. If you are not located in the United States, you'll have -to check the laws of the country where you are located before using this ebook. - - - - -Title: Frenzied Liberty and The Myth of "A Rich Man's War" - - -Author: Otto Hermann Kahn - - - -Release Date: January 27, 2016 [eBook #51055] - -Language: English - -Character set encoding: UTF-8 - - -***START OF THE PROJECT GUTENBERG EBOOK FRENZIED LIBERTY AND THE MYTH OF -"A RICH MAN'S WAR"*** - - -E-text prepared by ellinora and the Online Distributed Proofreading Team -(http://www.pgdp.net) from page images generously made available by -Internet Archive (https://archive.org) - - - -Note: Images of the original pages are available through - Internet Archive. See - https://archive.org/details/frenziedlibertyt00kahn - - -Transcriber’s note: - - Text enclosed by underscores is in italics (_italics_). - - - - - -FRENZIED LIBERTY - -The Myth of “A Rich Man’S War” - -by - -OTTO H. KAHN - - - - - - - -Extracts from Address Given at the University of Wisconsin, -Jan. 14, 1918 - ------------------------------------------------------------------------- - - - - - Part One - Frenzied Liberty - ------------------------------------------------------------------------- - - - - - FRENZIED LIBERTY - - -We are engaged in a war, an “irrepressible conflict,” a most just and -righteous war for a cause as high and noble as ever inspired a people to -put forth its utmost of sacrifice and valor. To attain the end for which -this peace-loving nation unsheathed its sword, to lay low and make -powerless the accursed spirit which brought all this unspeakable misery, -sorrow and ruin upon the world, is our one and supreme and unshakeable -purpose. - -That is the purpose of the people of Wisconsin as it is the purpose of -the people of New York and of every other State in the Union. I give no -credence to and have no patience with those who would measure as with a -thermometer the loyalty temperature of our communities. Some dreamers -there may be, here as everywhere, so immersed in their dreams that the -trumpet call of the day has not yet awakened them. - -Some politicians there may be, here and elsewhere, so obsessed by the -issues which heretofore were good election assets and so unable to shake -off the inveterate habits and the formulas and calculations of a -lifetime, that they are unable to recognize and to share in the sudden -flaming manifestations springing from the deep of the people’s soul—and -after a while, looking around for their usual followers, find themselves -in chilly loneliness. - -Some there are, a small minority always and getting smaller every day, -among Americans of German birth or descent who lack the vision to see -their duty or the strength to follow it, and who stand irresolute, -hesitant and dazed. - -The vast and overwhelming majority have acted like true men and loyal -Americans. They are entitled to claim your sympathetic understanding for -the heartache which is theirs and they are entitled to claim your trust. -It will not be misplaced. I am taking very little account of that -insignificant number of men of German origin who, misguided or corrupt, -dare by insidious and underground processes to attempt to weaken or -oppose the resolute will of the Nation. There are too few of them to -count and their manoeuvres are too clumsy to be effective. But let them -be warned. There is sweeping through the country a mighty wave of stern -and grim determination, which bodes ill for anyone standing in its way. - - - II - -One element only there is in our population which does deliberately -challenge our national unity. I mean the militant Bolsheviki in our -midst, the preachers and devotees of liberty run amuck, who would place -a visionary class interest above patriotism and who in ignorant -fanaticism would substitute for the tyranny of autocracy the still more -intolerable tyranny of mob-rule, as for the time being they have done in -Russia. - -If it were not for the disablement of Russia, the battle against -autocracy would have been won by now. As so often before, liberty has -been wounded in the house of its friends. Liberty in the wild and -freakish hands of fanatics has once more, as frequently in the past, -proved the effective helpmate of autocracy and the twin brother of -tyranny. - -Out-czaring the czar, its votaries are filling the prisons with their -political opponents, are practising ruthless spoliation and savage -oppression, and are maintaining their self-constituted rule by the force -of bayonets. Riot, robbery, famine, fratricidal strife are stalking -through the land. - -The deadliest foe of democracy is not autocracy but liberty frenzied. - -Liberty is not fool-proof. For its beneficent working it demands -self-restraint, a sane and clear recognition of the practical and -attainable and of the fact that there are laws of nature which are -beyond our power to change. - -Liberty can, does and must limit the rights of the strong, it must -increasingly guard and promote the well-being of those endowed with -lesser gifts for the struggle for existence and success, it must strive -in every way consistent with sane recognition of the realities to make -life more worth living to those whose existence is cast in the mould of -the vast average of mankind; it must give political equality, equality -before the law; it must throw wide open to talent and worth the door of -opportunity. - -But it must not attempt in fatuous recklessness to make over humanity on -the pattern of absolute equality. If and when it does so attempt, it -will fail as that attempt has always failed throughout history. For an -inscrutable Providence has made inequality of endowment a fundamental -law of nature, animate as well as inanimate, and from inequality of -physical strength, of brain power and of character, springs inevitably -the fact of inequality of results. - -Envy, demagogism, utopianism, well-meaning uplift agitation may throw -themselves against that basic law of all being, but the clash will -create merely temporary confusion, destruction and anarchy, as in -Russia; and after a little while and much suffering, the supremacy of -sanely restrained individualism over frenzied collectivism will reassert -itself. - - - III - -Under the system of wisely ordered liberty, combined with incentive to -individual effort whereof the foundation was laid by the far-sighted and -enlightened men who created this nation and endowed it with the most -sagacious instrument of government that the wit of man has devised, -America has grown and prospered beyond all other nations. - -It has stood as a republic for nearly a century and a half, which is far -longer than any other genuine republic has endured amongst the great -nations of the world since the beginning of the Christian era. Its past -has been glorious, the vista of its future is one of boundless -opportunity, of splendid fruitfulness for its own people and the world, -if it remains but true to its principles and traditions, adjusting their -expression and application to the changing needs of the times in a -spirit of progress, sympathetic understanding and enlightened justice, -but rejecting the teachings and temptations of false, though plausible -prophets. - -More and more, of late, do we see the very foundations of that majestic -and beneficent structure clamorously assailed by some of those to whom -the great republic generously gave asylum and to whom she opened wide -the portals of her freedom and her opportunities. - -These people with many hundreds of thousands of their countrymen came to -our free shores after centuries of oppression and persecution. America -gave them everything she had to give—the great gift of the rights and -liberties of citizenship, free education in our schools and -universities, free treatment in our clinics and hospitals, our boundless -opportunities for social and material advancement. - -Most of them have proved themselves useful and valuable elements in our -many-rooted population. Some of them have accomplished eminent -achievements in science, industry and the arts. Certain of the qualities -and talents which they contribute to the common stock are of great worth -and promise. - -But some of them there are who have shown themselves unworthy of the -trust of their fellow-citizens; ingrates, disturbers, ignorant of or -disloyal to the spirit of America, abusers of her hospitality. - -_Some there are who have been blinded by the glare of liberty as a man -is blinded who after long confinement in darkness, comes suddenly into -the strong sunlight. Blinded, they dare to aspire to force their -guidance upon Americans who for generations have walked in the light of -liberty._ - -_They have become drunk with the strong wine of freedom, these men who -until they landed on America’s coasts had tasted nothing but the bitter -water of tyranny. Drunk, they presume to impose their reeling gait upon -Americans to whom freedom has been a pure and refreshing fountain for a -century and a half._ - -_Brooding in the gloom of age-long oppression, they have evolved a -fantastic and distorted image of free government. In fatuous effrontery -they seek to graft the growth of their stunted vision upon the splendid -and ancient tree of American institutions._ - - - IV - -We will not have it so, we who are Americans by birth or adoption. We -reject these impudent pretensions. Changes the American people will make -as their need becomes apparent, improvements they welcome, the greatest -attainable well-being for all those under our national roof-tree is -their aim; but they will do all that in the American way of sane and -orderly progress—and in none other. - -Against foes within no less than against enemies without they will know -how to preserve and protect the splendid structure of light and order -which is the great and treasured inheritance of all those who rightly -bear the name Americans, of which the stewardship is entrusted to them -and which, God willing, they will hand on to their children sound and -wholesome, unshaken and undefiled. - -The time is ripe and over-ripe to call a halt upon these spreaders of -outlandish and pernicious doctrines. The American is indulgent to a -fault and slow to wrath. But he is now passing through a time of tension -and strain. His teeth are set and his nerves on edge. He sees more -closely approaching every day the dark valley through which his sons and -brothers must pass and from which too many, alas, will not return. It is -an evil time to cross him. He is not in the temper to be trifled with. -He is apt very suddenly to bring down the indignant fist of his might -upon those who would presume on his habitual mood of easy-going good -nature. - -When I speak of the militant Bolsheviki in our midst as foes of national -unity I mean to include those of American stock who are their allies, -comrades or followers—those who put a narrow class interest and a sloppy -internationalism above patriotism, with whom class hatred and envy have -become a consuming passion, whom visionary obsessions and a false -conception of equality have inflamed to the point of irresponsibility. -But I am far from meaning to reflect upon those who, while determined -Socialists, are patriotic Americans. - -I believe the Socialistic state to be an impracticable conception, a -utopian dream, human nature being what it is, and the immutable laws of -nature being what they are. But there is not a little in Socialistic -doctrine and aspirations that is high and noble; there are things, too, -that are achievable and desirable. - -And to the extent that Socialism is an antidote to and a check upon -excessive individualism and holds up to a busy and self-centered and far -from perfect world, grievances to be remedied, wrongs to be righted, -ideals to be striven for, it is a force distinctly for good. - -Still less do I mean to reflect upon the labor union movement, which I -regard as an absolutely necessary element in the scheme of our economic -life. Its leaders have acted with admirable patriotism in this crisis of -the Nation, and on the whole have been a factor against extreme -tendencies and irrational aspirations. - -Trades unions have not only come to stay, but they are bound, I think, -to become an increasingly potent factor in our industrial life. I -believe that the most effective preventive against extreme State -Socialism is frank, free and far-reaching co-operation between business -and trades unions sobered and broadened increasingly by enhanced -opportunities, rights and responsibilities. - - - V - -Business must not deal grudgingly with labor. We business men must not -look upon labor unrest and aspirations as temporary “troubles,” as a -passing phase, but we must give to labor willing and liberal recognition -as partner with capital. We must under all circumstances pay as a -minimum a decent living wage to everyone who works for a living. We must -devise means to cope with the problem of unemployment and to meet the -dread advent of sickness, incapacity and old age in the case of those -whose means do not permit them to provide for a rainy day. - -We must bridge the gulf which now separates the employer and the -employee, the business man and the farmer, if the existing order of -civilization is to persist. We must welcome progress and seek to further -social justice. We must translate into effective action our sympathy for -and our recognition of the rights of those whose life, in too many -cases, is now a hard and weary struggle to make both ends meet, and who -too often are oppressed by the gnawing care of how to find the -wherewithal to provide for themselves and their families. We must, by -deeds, demonstrate convincingly the genuineness of our desire to see -their burden lightened. - -We must all join in a sincere and sustained effort towards procuring for -the masses of the people more of ease and comfort, more of the rewards -and joys of life than they now possess. I believe this is not only our -duty but our interest, because if we wish to preserve the fundamental -lines of our present social system we must leave nothing practicable -undone to make it more satisfactory and more inviting than it is now to -the vast majority of those who toil. And I do not mean those only who -toil with their hands, but also the professional men, the men and women -in modest salaried positions, in short, the workers in every occupation. - -Even before the war, a great stirring and ferment was going on in the -land. The people were groping, seeking for a new and better condition of -things. The war has intensified that movement. It has torn great -fissures in the ancient structure of our civilization. To restore it -will require the co-operation of all patriotic men of sane and temperate -views, whatever may be their occupation or calling or political -affiliations. It cannot be restored just as it was before. - -The building must be rendered more habitable and attractive to those -whose claim for adequate houseroom cannot be left unheeded, either -justly or safely. Some changes, essential changes, must be made. - -I have no fear of the outcome and of the readjustment which must come. I -have no fear of the forces of freedom unless they be ignored, repressed -or falsely and selfishly led. - -But this is not the time for settling complex social questions. When -your house is being invaded by burglars you do not discuss family -questions. Let us win the war first. Nothing else must now be permitted -to occupy our thoughts and divert our aims. - -When we shall have attained victory and peace, then will be the time for -us to sit down and reason together and make such changes in political -and social conditions as, after full and fair discussion, free from heat -and passion, the enlightened public opinion of the country deems -requisite. - ------------------------------------------------------------------------- - - - - - Part Two - - The Myth of - “A Rich Man’s War” - ------------------------------------------------------------------------- - - - - - THE MYTH OF - “A RICH MAN’S WAR” - - -Since Pacifism and semi-seditious agitation have become both unpopular -and risky, the propagandists of disunion have been at pains in -endeavoring to insidiously affect public sentiment by spreading the -fiction that America’s entrance into the war was fomented by “big -business” from selfish reasons and for the purpose of gain. In the same -line of thought and purpose they proclaim that this is “a rich man’s war -and a poor man’s fight” and that wealth is being taxed here with undue -leniency as compared to the burden laid upon it in other countries. - -These assertions are in flat contradiction to the facts: - -Nothing is plainer than that business and business men had everything to -gain by preserving the conditions which existed during the two and a -half years prior to April, 1917, under which many of them made very -large profits by furnishing supplies, provisions and financial aid to -the Allied nations, taxes were light and this country was rapidly -becoming the great economic reservoir of the world. - -Nothing is plainer than that any sane business man in this country must -have foreseen that if America entered the war these profits would be -immensely reduced, and some of them cut off entirely, because our -Government would step in and take charge; that it would cut prices right -and left, as in fact it has done; that enormous burdens of taxation -would have to be imposed, the bulk of which would naturally be borne by -the well-to-do; in short, that the unprecedented golden flow into the -coffers of business was bound to stop with our joining the war; or, at -any rate, to be much diminished. - -The best indication of the state of feeling of the financial community -is usually the New York Stock Exchange. Well, every time a ship with -Americans on board was sunk by a German submarine in the period -preceding our entrance into the war, the stock market shivered and -prices declined. - -When, a little over a year ago, Secretary Lansing declared that we were -“on the verge of war,” a tremendous smash in prices took place on the -Stock Exchange. That does not look, does it, as if rich men were -particularly eager to bring on war or cheered by the prospect of having -war? - -But, it is said, the big financiers of New York were afraid that the -money loaned by them to the Allied nations might be lost if these -nations were defeated, and therefore they manoeuvred to get America into -the war in order to save their investments. A moment’s reflection will -show the utter absurdity of that charge. - -American bankers have loaned to the Allied nations—almost entirely to -the two strongest and wealthiest among them, France and England—about -two billions of dollars since the war started in 1914. - -These two billions of dollars of Allied bonds are not held, however, in -the coffers of Eastern bankers, but have been distributed throughout the -country and are being owned by thousands of banks and other corporations -and individuals. - -Moreover, they form an insignificant portion of the total debts of the -Allied nations; they are offset a hundredfold by their total assets. -Even if those nations were to have lost the war it is utterly -inconceivable that they would ever have defaulted upon that particular -portion of their debt, because, being their _foreign_ debt, it has a -special standing and intrinsic security. - -It is upon the punctual payment of its foreign obligations that a -nation’s credit in the markets of the world largely depends, and the -maintenance of their world credit was and is absolutely vital to England -and France. Furthermore, the greater portion of these obligations was -secured by the deposit of collateral in the shape of American railroad -and other bonds, etc., which were more than sufficient in value to cover -the debt. - -But let us assume for argument’s sake that the Allies had been defeated -and had defaulted, for the time being, upon these foreign debts; let us -assume that the entire amount of Allied bonds placed in America had been -held by rich men in New York and the East instead of being distributed, -as it is, throughout the country. Why, is it not perfectly manifest that -a single year’s American war taxation and reduction of profits would -take out of the pockets of such assumed holders a vastly greater sum -than any possible loss they could have suffered by a default on their -Allied bonds, not to mention the heavy taxation which is bound to follow -the war for years to come and the shrinkage of fortunes through the -decline of all American securities in consequence of our entrance into -the war? - -Is it not perfectly manifest to the meanest understanding that any -business man fomenting our entrance into the war for the purpose of gain -must have been entirely bereft of his senses and would have been a fit -subject for the appointment of a guardian to take care of himself and -his affairs? - - - II - -Now as to the allegations concerning taxation: 1. The largest incomes -are taxed far more heavily here than anywhere else in the world. - -The maximum rate of income taxation here is 67%. In England it is 42½%. -Ours is therefore 50% higher than England’s and the rate in England is -the highest prevailing anywhere in Europe. Neither republican France nor -democratic England—containing in their cabinets Socialists and -representatives of labor—nor autocratic Germany have an income tax rate -anywhere near as high as our maximum rate. And in addition to the -federal tax we must bear in mind our state and municipal taxes. - -2. Moderate and small incomes, on the other hand, are subject to a far -smaller rate of taxation here than in England. - -In America, incomes of married men up to $2,000 are not subject to any -federal income tax at all. - - In England the tax on incomes of $1,000 is 4½% - In England the tax on incomes of 1,500 is 6¾% - In England the tax on incomes of 2,000 is 7⅞% - -(These are the rates if the income is derived from salaries or wages; -they are still higher if the income is derived from rents or -investments.) - -The English scale of taxation on incomes of, say, $3,000, $5,000, -$10,000 and $15,000, respectively averages as follows, as compared to -the American rates for married men: - - In England In America - Income tax rate on $3,000 14% ⅔ of 1% - Income tax rate on 5,000 16% 1½% - Income tax rate on 10,000 20% 3½% - Income tax rate on 15,000 25% 5% - -(If we add the so-called “occupational” tax, our total taxation on -incomes of $10,000 is 6¾%, and on incomes of $15,000, 9¾%.) - -In other words, our income taxation is more democratic than that of any -other country, in that the largest incomes are taxed much more heavily, -and the small and moderate incomes much more lightly than anywhere else, -and incomes up to $2,000 for married men not taxed at all. - -3. It is true, on the other hand, that on very large incomes as -distinguished from the largest incomes, our income tax is somewhat lower -than the English tax, but the difference by which our tax is lower than -the English tax is incomparably more pronounced in the case of small and -moderate incomes than of large incomes. Moreover, if we add to our -income tax our so-called excess profit tax, which is merely an -additional income tax on earnings derived from business, we shall find -that the total tax to which rich men are subject is in the great -majority of cases heavier here than in England or anywhere else. - -4. It is likewise true that the English war excess profit tax is 80% -(less various offsets and allowances) whilst our so-called excess profit -tax ranges from 20% to 60%. - -But it is entirely misleading to base a conclusion as to the relative -heaviness of the American and British tax merely on a comparison of the -rates, because the English tax is assessed on a wholly different basis -from the American tax. As a matter of fact, Congress has estimated that -the 20% to 60% tax on the American basis will produce approximately the -same amount in dollars and cents as the 80% tax is calculated to produce -in England. (I know I shall be answered that we have twice the -population of England and twice the wealth. But it must be borne in mind -that a far larger proportion of our wealth is represented by farms and -other non-industrial property and that a far larger proportion of our -people than of the British people are engaged in agricultural pursuits -which are not affected by the excess profit tax. I believe it will be -found that the total wealth employed in business in America is not so -greatly superior to the total wealth similarly employed by Great -Britain.) - -_The American excess profit law so-called taxes all profits derived from -business_ over and above a certain moderate percentage, regardless of -whether or not such profits are the result of war conditions. The -American tax is a general tax on income derived from business, in -addition to the regular income tax. _The English tax applies only to -excess war profits_; that is, only to the sum by which profits in the -war years exceed the profits on the three years preceding the war, which -in England were years of great prosperity. - -In other words, the English tax is nominally higher than ours, but it -applies only to war profits. The normal profits of business, i. e., the -profits which business used to make in peace time, are exempted in -England. _There, only the excess over peace profits is taxed. Our tax, -on the contrary, applies to all profits_ over and above a very moderate -rate on the money invested in business. - -In short, our law-makers have decreed that normal business profits are -taxed here much more heavily than in England, while direct war profits -are taxed less heavily. You will agree with me in questioning both the -logic and the justice of that method. It would seem that it would be -both fairer and wiser and more in accord with public sentiment if the -tax on business in general were decreased and, on the other hand, an -increased tax were imposed on specific war profits. - -5. Our federal inheritance tax is far higher than it is in England or -anywhere else. The maximum rate here on direct descendants is 27½% as -against 20% in England. In addition to that we have State inheritance -taxes which do not exist in England. - -6. Of her total actual war expenditures (exclusive of loans to her -Allies and interest on war loans), England has raised less than 15% by -taxation (France and Germany far less), while America is about to raise -by taxation approximately 28% of her total war requirements (exclusive -of loans to the Allied nations and of the amount to be invested in -mercantile ships, which, being a productive investment, cannot properly -be classed among war expenditures.) - - - III - -Much is being said about the plausible sounding contention that because -a portion of the young manhood of the Nation has been conscripted, -therefore money also must be conscripted. Why, that is the very thing -the Government has been doing. It has conscripted a portion, a -relatively small portion, of the men of the Nation. It has conscripted a -portion, a large portion, of the incomes of the Nation. If it went too -far in conscripting men, the country would be crippled. If it went too -far in conscripting incomes and earnings, the country would likewise be -crippled. - -Those who would go further and conscript not only incomes but capital, I -would ask to answer the riddle not only in what equitable and -practicable manner they would do it,[1] but what the Nation would gain -by it? - -Footnote 1: - - It is true that a few years ago a capital levy was made in Germany, - but the percentage of that levy was so small as to actually amount to - no more than an additional income tax, and that at a time when the - regular income tax in Germany was very moderate as measured by the - present standards of income taxation. - -Only a trifling fraction of a man’s property is held in cash. If they -conscript a certain percentage of his possessions in stocks and bonds, -what would the Government do with them? - -Keep them? That would not answer its purpose, because the Government -wants cash, not securities. - -Sell them? Who is to buy them when everyone’s funds would be depleted? - -If they conscript a certain percentage of a man’s real estate or mine or -farm or factory, how is that to be expressed and converted into cash? - -Are conscripted assets to be used as a basis for the issue of Federal -Reserve Bank Notes? That would mean gross inflation with all its -attendant evils, dangers and deceptions. - -Would they repudiate a percentage of the National debt? Repudiation is -no less dishonorable in a people than in an individual, and the penalty -for failure to respect the sanctity of obligations is no different for a -nation than for an individual. - -The fact is that the Government would gain nothing in the process of -capital conscription and the country would be thrown into chaos for the -time being. The man who has saved would be penalized, he who has wasted -would be favored. Thrift and constructive effort, resulting in the -needful and fructifying accumulation of capital would be arrested and -lastingly discouraged. - -I can understand the crude notion of the man who would divide all -possessions equally. There would be mighty little coming to anyone by -such distribution and it is, of course, an utterly impossible thing to -do, but it is an understandable notion. But by the confiscation of -capital for Government use neither the Government nor any individual -would be benefited. - -A vigorously progressive income tax is both economically and socially -sound. A capital tax is wholly unsound and economically destructive. It -may nevertheless become necessary in the case of some of the belligerent -countries to resort to this expedient, but I can conceive of no -situation likely to arise which would make it necessary or advisable in -this country. More than ever would such a tax be harmful in times of war -and post-bellum reconstruction, when beyond almost all other things it -is essential to stimulate production and promote thrift, and when -everything which tends to have the opposite effect should be rigorously -rejected as detrimental to the Nation’s strength and well-being. - -There is an astonishing lot of hazy thinking on the subject of the uses -of capital in the hands of its owners. The rich man can only spend a -relatively small sum of money unproductively or selfishly. The money -that it is in his power to actually waste is exceedingly limited. The -bulk of what he has must be spent and used for productive purposes, just -as would be the case if it were spent by the Government, with this -difference, however, that, generally speaking, the individual is more -painstaking and discriminating in the use of his funds and at the same -time bolder, more imaginative, enterprising and constructive than the -Government with its necessarily bureaucratic and routine regime possibly -could be. Money in the hands of the individual is continuously and -feverishly on the search for opportunities, i. e., for creative and -productive use. In the hands of the Government it is apt to lose a good -deal of its fructifying energy and ceaseless striving and to sink -instead into placid and somnolent repose. - -Taxation presupposes earnings. Our credit structure is based upon -values, and values are largely determined by earnings. Shrinkage of -values necessarily affects our capacity to provide the Government with -the sinews of war. - -There need not be and there should not be any conflict between profits -and patriotism. I am utterly opposed to those who would utilize their -country’s war as a means to enrich themselves. Extortionate profits must -not be tolerated, but, on the other hand, there should be a reasonably -liberal disposition toward business and a willingness to see it make -substantial earnings. To deny this is to deny human nature. - -Men will give their lives to their country as a matter of plain and -natural duty; men, without a moment’s hesitation, will quit their -business and devote their entire time and energy and effort to the -affairs of the Nation, as a great many have done and every one of us -stands ready to do, without any thought of compensation. But, generally -speaking, men will not take business risks, will not venture, will not -be enterprising and constructive, will not take upon themselves the -responsibilities, the chance of loss, the strain, the wear and tear and -worry and care of intense business activity if they do not have the -prospect of adequate monetary reward, even though a large part of that -reward is taken away again in the shape of taxation. - - - IV - -Reverting now to the subject of the conscription of men, I know I speak -the sentiment of all those beyond the years of young manhood when I say -that there is not one of us worthy of the name of a man who would not -willingly go to fight if the country needed or wanted us to fight. But -the country does not want or call its entire manhood to fight. It does -not even call anywhere near its entire young manhood. It has called, or -intends to call in the immediate future, perhaps 25% of its men between -20 and 30 years of age, which means probably about 4% of its total male -population of all ages. In other words, it calls only for such number of -men as appears indicated by the needs of the country, and as corresponds -to a prudent estimate of the task before it. - -I am far from meaning to compare the loss of income or profits with the -risk of life or health to which men on the firing line are exposed, or -to compare financial sacrifices to those willingly and proudly borne by -the youth of our land and shared by those near and dear to them. But I -do believe it to be a just contention—not in the interest of the -individual, but of the welfare of the community—that the same principle -which is applied in the case of the conscription of men should hold good -for the conscription of income or profits; i. e., so much thereof should -be taken by the State as is required by a prudent estimate of the task -before it and as best promotes the accomplishment of that task, bearing -in mind that the preservation of the country’s economic power is next in -importance for winning the war to its military power. Vindictiveness, -extremist theories and demagogism ought to have no place in arriving at -that estimate. - -I have no patience with or tolerance for the “war profiteer,” as the -term is understood. The “war hog” is a nuisance and an ignominy. He -should be dealt with just as drastically as is possible without doing -damage to national interests in the process. But neither have I patience -with nor tolerance for the man who would use his country’s war as a -means to promote his pet theories or his political fortunes at the -expense of national unity at a time when we should all be united in -mutual good will and co-operative effort. - -And if we do talk about the formula, “conscription of men—conscription -of wealth,” let it be understood that we have called less than 5% of the -Nation’s entire male population, but have called from incomes, business -profits and other imposts falling principally on the well-to-do, -approximately 90% of our war taxation, not to mention the contribution -to the Red Cross, the Y. M. C. A. and other war relief activities. - -Let me add in passing that _the children of the well-to-do have been -taken for the war in proportionately greater numbers than the children -of the poor_, because those young men who are needed at home to support -dependents or to maintain essential war industries are exempted from the -draft. - -Moreover, to an overwhelming degree the sons of the well-to-do have not -waited to be conscripted. They have volunteered in masses—a far greater -percentage of them than those in less advantageous circumstances. That -is merely as it should be. Having greater advantages, they have -corresponding duties. Not having dependents to take care of, they can -better afford to volunteer than those less fortunately situated. - -But the patriotic zeal of the sons of the well-to-do in coming forward -to offer their lives to the country does give a doubly false and -sickening sound to the ranting of the agitator who would arouse class -hatred—who calls this “a rich man’s war and a poor man’s fight” when an -overwhelming percentage of the sons of the men of means have eagerly and -freely offered themselves for military service, when _the draft -exemption regulations discriminate not, as in former wars, in favor of -the rich man’s son but in favor of the poor woman’s son_, and when -capital and business pay more than four-fifths of our war taxation -directly and a large share of the remaining one-fifth indirectly. - -I do not say all this to plead for a reduction of the taxation on -wealth, or in order to urge that no additional taxes be imposed on -wealth if need be. There is no limit to the burden which, in time of -stress and strain, those must be willing to bear who can afford it, -except only that limit which is imposed by the consideration that -taxation must not reach a point where the business activity of the -country becomes crippled, and its economic equilibrium is thrown out of -gear, because that would harm every element of the commonwealth and -diminish the war-making capacity of the Nation. - - - V - -The question of the individual is not the one that counts. The question -is not what sacrifices capital should and would be willing to bear if -called upon, but what taxes it is _to the public advantage_ to impose. - -Taxation must be sound and wise and scientific, and cannot be laid in a -haphazard way or on impulse or according to considerations of politics. -Otherwise, the whole country will suffer. History has shown over and -over again that the laws of economics cannot be defied with impunity and -that the resulting penalty falls upon all sections and classes. - -I realize but too well that the burden of the abnormally high cost of -living, caused largely by the war, weighs heavily indeed upon wage -earners and still more upon men and women with moderate salaries. I -yield to no one in my desire to see everything done that is practicable -to have that burden lightened. But excessive taxation on capital will -not accomplish that; on the contrary, it will rather tend to intensify -the trouble. - -We men of business are ready and willing to be taxed in this emergency -to the very limit of our ability, and to make contributions to war -relief work and other good causes, without stint. The fact is that, -generally speaking, capital engaged in business is now being taxed in -America more heavily than anywhere else in the world. We are not -complaining about this; we do not say that it may not become necessary -to impose still further taxes; we are not whimpering and squealing and -agitating, but—we do want the people to know what are the present facts, -and we ask them not to give heed to the demagogue who would make them -believe that we are escaping our share of the common burden. - -May I hope that I have measurably succeeded in demonstrating that the -allegations with which the propagandists of disunion have been assailing -the public mind are without foundation in fact. And may I add, in -conclusion, that the charge of “big business” having fomented our -entrance into the war is one which, apart from its intrinsic absurdity, -is a hateful calumny. Business men, great or small, are no different -from other Americans, and we reject the thought that any American, rich -or poor, would be capable of the hideous and dastardly plot to bring -upon his country the sorrows and sufferings of war in order to enrich -himself. - -Business men are bound to be exceedingly heavy financial losers through -America’s entrance into the war. Every element of self-interest should -have caused them to use their utmost efforts to preserve America’s -neutrality from which they drew so much profit during the two and a half -years before April, 1917. Every consideration of personal advantage -commanded men of affairs to stand with and support the agitation of the -“peace-at-any-price” party. They spurned such ignoble reasoning; they -rejected that affiliation; they stood for war when it was no longer -possible, with safety and honor, to maintain peace, because they are -patriotic citizens first and business men afterward. - -The insinuation that “big business” had any share in influencing our -Government’s decision to enter the war is an insult to the President and -Congress, a libel on American citizenship, and a malicious perversion or -ignorant misconception of the facts. Those who continue to circulate -that insinuation lay themselves open to just suspicion of their motives -and should receive neither credence nor tolerance. - - - - - * * * * * * - - - - -Transcriber’s note: - -Obvious errors in spelling or punctuation have been corrected. - - - -***END OF THE PROJECT GUTENBERG EBOOK FRENZIED LIBERTY AND THE MYTH OF "A -RICH MAN'S WAR"*** - - -******* This file should be named 51055-0.txt or 51055-0.zip ******* - - -This and all associated files of various formats will be found in: -http://www.gutenberg.org/dirs/5/1/0/5/51055 - - -Updated editions will replace the previous one--the old editions will -be renamed. - -Creating the works from print editions not protected by U.S. copyright -law means that no one owns a United States copyright in these works, -so the Foundation (and you!) can copy and distribute it in the United -States without permission and without paying copyright -royalties. 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margin-bottom: 0.0em; } - .c010 { page-break-before: auto; margin-top: 2em; } - .c011 { vertical-align: top; text-align: left; padding-right: 1em; } - .c012 { vertical-align: top; text-align: center; padding-right: 1em; } - .c013 { vertical-align: top; text-align: center; } - .c014 { text-decoration: none; } - .c015 { border: none; border-bottom: 1px solid; width: 10%; margin-left: 0; - margin-top: 1em; text-align: left; } - .c016 { margin-top: 2em; text-indent: 1em; margin-bottom: 0.0em; } - .pageno {border-style: none} - .dblspace { word-spacing: .5em; } - - h1.pg { font-weight: bold; - font-size: 190%; } - h2.pg { font-weight: bold; - font-size: 135%; } - h3.pg { font-weight: bold; - font-size: 110%; } - hr.full { width: 100%; - margin-top: 3em; - margin-bottom: 0em; - margin-left: auto; - margin-right: auto; - height: 4px; - border-width: 4px 0 0 0; /* remove all borders except the top one */ - border-style: solid; - border-color: #000000; - clear: both; } - </style> -</head> -<body> -<h1 class="pg">The Project Gutenberg eBook, Frenzied Liberty and The Myth of "A Rich -Man's War", by Otto Hermann Kahn</h1> -<p>This eBook is for the use of anyone anywhere in the United States -and most other parts of the world at no cost and with almost no -restrictions whatsoever. You may copy it, give it away or re-use it -under the terms of the Project Gutenberg License included with this -eBook or online at <a -href="http://www.gutenberg.org">www.gutenberg.org</a>. If you are not -located in the United States, you'll have to check the laws of the -country where you are located before using this ebook.</p> -<p>Title: Frenzied Liberty and The Myth of "A Rich Man's War"</p> -<p>Author: Otto Hermann Kahn</p> -<p>Release Date: January 27, 2016 [eBook #51055]</p> -<p>Language: English</p> -<p>Character set encoding: UTF-8</p> -<p>***START OF THE PROJECT GUTENBERG EBOOK FRENZIED LIBERTY AND THE MYTH OF "A RICH MAN'S WAR"***</p> -<p> </p> -<h4 class="nf-center">E-text prepared by ellinora<br /> - and the Online Distributed Proofreading Team<br /> - (<a href="http://www.pgdp.net">http://www.pgdp.net</a>)<br /> - from page images generously made available by<br /> - Internet Archive<br /> - (<a href="https://archive.org">https://archive.org</a>)</h4> -<p> </p> -<table border="0" style="background-color: #ccccff;margin: 0 auto;" cellpadding="10"> - <tr> - <td valign="top"> - Note: - </td> - <td> - Images of the original pages are available through - Internet Archive. See - <a href="https://archive.org/details/frenziedlibertyt00kahn"> - https://archive.org/details/frenziedlibertyt00kahn</a> - </td> - </tr> -</table> -<p> </p> -<hr class="full" /> -<p> </p> -<p> </p> -<p> </p> - - -<div class='figcenter id001'> -<img src='images/cover.jpg' alt='' class='ig001' /> -</div> -<div class='pbb'> - <hr class='pb c002' /> -</div> - -<div> - <h1 class='c003'><span class='xlarge'>FRENZIED</span><br /><span class='xlarge'>LIBERTY</span></h1> -</div> - -<div class='nf-center-c1'> -<div class='nf-center c004'> - <div><span class='large'>THE MYTH OF</span></div> - <div><span class='large'>“A RICH MAN’S WAR”</span></div> - <div class='c004'><span class='small'>BY</span></div> - <div><span class='large'><span class='sc'>Otto H. Kahn</span></span></div> - </div> -</div> - -<div class='nf-center-c1'> -<div class='nf-center c004'> - <div><span class='small'>EXTRACTS FROM ADDRESS</span></div> - <div><span class='small'>GIVEN AT THE UNIVERSITY</span></div> - <div><span class='small'>OF WISCONSIN, JAN. 14, 1918</span></div> - </div> -</div> - -<div class='pbb'> - <hr class='pb c002' /> -</div> - -<div class='nf-center-c0'> -<div class='nf-center c000'> - <div><span class='xlarge'>Part One</span></div> - <div><span class='large'>Frenzied Liberty</span></div> - </div> -</div> - -<div class='pbb'> - <hr class='pb c002' /> -</div> - -<div class='chapter'> - <span class='pageno' title='5' id='Page_5'>[5]</span> - <h2 class='c005'><span class='sc'>Frenzied Liberty</span></h2> -</div> - -<p class='drop-capa0_2_0_6 c006'>We are engaged in a war, an “irrepressible -conflict,” a most just and -righteous war for a cause as high -and noble as ever inspired a people to put -forth its utmost of sacrifice and valor. To -attain the end for which this peace-loving -nation unsheathed its sword, to lay low -and make powerless the accursed spirit -which brought all this unspeakable misery, -sorrow and ruin upon the world, is our -one and supreme and unshakeable purpose.</p> - -<p class='c007'>That is the purpose of the people of -Wisconsin as it is the purpose of the -people of New York and of every other -State in the Union. I give no credence to -and have no patience with those who -would measure as with a thermometer -the loyalty temperature of our communities. -<span class='pageno' title='6' id='Page_6'>[6]</span>Some dreamers there may be, here as -everywhere, so immersed in their dreams -that the trumpet call of the day has not -yet awakened them.</p> - -<p class='c007'>Some politicians there may be, here and -elsewhere, so obsessed by the issues which -heretofore were good election assets and -so unable to shake off the inveterate -habits and the formulas and calculations -of a lifetime, that they are unable to -recognize and to share in the sudden -flaming manifestations springing from -the deep of the people’s soul—and after a -while, looking around for their usual -followers, find themselves in chilly loneliness.</p> - -<p class='c007'>Some there are, a small minority always -and getting smaller every day, -among Americans of German birth or -descent who lack the vision to see their -duty or the strength to follow it, and who -stand irresolute, hesitant and dazed.</p> - -<p class='c007'>The vast and overwhelming majority -have acted like true men and loyal Americans. -They are entitled to claim your -sympathetic understanding for the heartache -which is theirs and they are entitled -to claim your trust. It will not be misplaced. -<span class='pageno' title='7' id='Page_7'>[7]</span>I am taking very little account of that -insignificant number of men of German -origin who, misguided or corrupt, dare by -insidious and underground processes to -attempt to weaken or oppose the resolute -will of the Nation. There are too few of -them to count and their manoeuvres are -too clumsy to be effective. But let them -be warned. There is sweeping through -the country a mighty wave of stern and -grim determination, which bodes ill for -anyone standing in its way.</p> - -<h3 class='c008'>II</h3> - -<p class='c009'>One element only there is in our -population which does deliberately -challenge our national unity. I -mean the militant Bolsheviki in our midst, -the preachers and devotees of liberty run -amuck, who would place a visionary class -interest above patriotism and who in -ignorant fanaticism would substitute for -the tyranny of autocracy the still more -intolerable tyranny of mob-rule, as for -the time being they have done in Russia.</p> - -<p class='c007'>If it were not for the disablement of -Russia, the battle against autocracy -<span class='pageno' title='8' id='Page_8'>[8]</span>would have been won by now. As so -often before, liberty has been wounded -in the house of its friends. Liberty in -the wild and freakish hands of fanatics -has once more, as frequently in the past, -proved the effective helpmate of autocracy -and the twin brother of tyranny.</p> - -<p class='c007'>Out-czaring the czar, its votaries are -filling the prisons with their political opponents, -are practising ruthless spoliation -and savage oppression, and are maintaining -their self-constituted rule by the -force of bayonets. Riot, robbery, famine, -fratricidal strife are stalking through the -land.</p> - -<p class='c007'>The deadliest foe of democracy is not -autocracy but liberty frenzied.</p> - -<p class='c007'>Liberty is not fool-proof. For its beneficent -working it demands self-restraint, -a sane and clear recognition of the practical -and attainable and of the fact that -there are laws of nature which are -beyond our power to change.</p> - -<p class='c007'>Liberty can, does and must limit the -rights of the strong, it must increasingly -guard and promote the well-being of -those endowed with lesser gifts for the -<span class='pageno' title='9' id='Page_9'>[9]</span>struggle for existence and success, it -must strive in every way consistent with -sane recognition of the realities to make -life more worth living to those whose -existence is cast in the mould of the vast -average of mankind; it must give political -equality, equality before the law; it must -throw wide open to talent and worth the -door of opportunity.</p> - -<p class='c007'>But it must not attempt in fatuous -recklessness to make over humanity on -the pattern of absolute equality. If and -when it does so attempt, it will fail as -that attempt has always failed throughout -history. For an inscrutable Providence -has made inequality of endowment -a fundamental law of nature, animate as -well as inanimate, and from inequality of -physical strength, of brain power and of -character, springs inevitably the fact of -inequality of results.</p> - -<p class='c007'>Envy, demagogism, utopianism, well-meaning -uplift agitation may throw -themselves against that basic law of -all being, but the clash will create -merely temporary confusion, destruction -and anarchy, as in Russia; and after -a little while and much suffering, -<span class='pageno' title='10' id='Page_10'>[10]</span>the supremacy of sanely restrained individualism -over frenzied collectivism -will reassert itself.</p> - -<h3 class='c008'>III</h3> - -<p class='c009'>Under the system of wisely ordered -liberty, combined with incentive -to individual effort whereof the -foundation was laid by the far-sighted and -enlightened men who created this nation -and endowed it with the most sagacious -instrument of government that the wit of -man has devised, America has grown and -prospered beyond all other nations.</p> - -<p class='c007'>It has stood as a republic for nearly a -century and a half, which is far longer -than any other genuine republic has endured -amongst the great nations of the -world since the beginning of the Christian -era. Its past has been glorious, the vista -of its future is one of boundless opportunity, -of splendid fruitfulness for its own -people and the world, if it remains but -true to its principles and traditions, adjusting -their expression and application to -the changing needs of the times in a spirit -of progress, sympathetic understanding -<span class='pageno' title='11' id='Page_11'>[11]</span>and enlightened justice, but rejecting the -teachings and temptations of false, -though plausible prophets.</p> - -<p class='c007'>More and more, of late, do we see the -very foundations of that majestic and -beneficent structure clamorously assailed -by some of those to whom the great republic -generously gave asylum and to -whom she opened wide the portals of her -freedom and her opportunities.</p> - -<p class='c007'>These people with many hundreds of -thousands of their countrymen came to -our free shores after centuries of oppression -and persecution. America gave -them everything she had to give—the -great gift of the rights and liberties of -citizenship, free education in our schools -and universities, free treatment in our -clinics and hospitals, our boundless opportunities -for social and material advancement.</p> - -<p class='c007'>Most of them have proved themselves -useful and valuable elements in our many-rooted -population. Some of them have -accomplished eminent achievements in -science, industry and the arts. Certain -of the qualities and talents which they -contribute to the common stock are of -great worth and promise.</p> - -<p class='c007'><span class='pageno' title='12' id='Page_12'>[12]</span>But some of them there are who have -shown themselves unworthy of the trust -of their fellow-citizens; ingrates, disturbers, -ignorant of or disloyal to the spirit of -America, abusers of her hospitality.</p> - -<p class='c007'><i>Some there are who have been blinded by -the glare of liberty as a man is blinded who -after long confinement in darkness, comes -suddenly into the strong sunlight. Blinded, -they dare to aspire to force their guidance -upon Americans who for generations have -walked in the light of liberty.</i></p> - -<p class='c007'><i>They have become drunk with the strong -wine of freedom, these men who until they -landed on America’s coasts had tasted nothing -but the bitter water of tyranny. Drunk, -they presume to impose their reeling gait -upon Americans to whom freedom has been -a pure and refreshing fountain for a century -and a half.</i></p> - -<p class='c007'><i>Brooding in the gloom of age-long oppression, -they have evolved a fantastic and -distorted image of free government. In -fatuous effrontery they seek to graft the -growth of their stunted vision upon the -splendid and ancient tree of American -institutions.</i></p> - -<div> - <span class='pageno' title='13' id='Page_13'>[13]</span> -<h3 class='c008'>IV</h3> -</div> - -<p class='c009'>We will not have it so, we who are -Americans by birth or adoption. -We reject these impudent pretensions. -Changes the American people will -make as their need becomes apparent, improvements -they welcome, the greatest -attainable well-being for all those under -our national roof-tree is their aim; but -they will do all that in the American way -of sane and orderly progress—and in none -other.</p> - -<p class='c007'>Against foes within no less than against -enemies without they will know how to -preserve and protect the splendid structure -of light and order which is the great and -treasured inheritance of all those who -rightly bear the name Americans, of -which the stewardship is entrusted to -them and which, God willing, they will -hand on to their children sound and -wholesome, unshaken and undefiled.</p> - -<p class='c007'>The time is ripe and over-ripe to call a -halt upon these spreaders of outlandish -and pernicious doctrines. The American -is indulgent to a fault and slow to wrath. -But he is now passing through a time of -<span class='pageno' title='14' id='Page_14'>[14]</span>tension and strain. His teeth are set and -his nerves on edge. He sees more closely -approaching every day the dark valley -through which his sons and brothers must -pass and from which too many, alas, will -not return. It is an evil time to cross -him. He is not in the temper to be -trifled with. He is apt very suddenly to -bring down the indignant fist of his might -upon those who would presume on his -habitual mood of easy-going good nature.</p> - -<p class='c007'>When I speak of the militant Bolsheviki -in our midst as foes of national -unity I mean to include those of American -stock who are their allies, comrades or -followers—those who put a narrow class -interest and a sloppy internationalism -above patriotism, with whom class hatred -and envy have become a consuming passion, -whom visionary obsessions and a -false conception of equality have inflamed -to the point of irresponsibility. But I am -far from meaning to reflect upon those -who, while determined Socialists, are -patriotic Americans.</p> - -<p class='c007'>I believe the Socialistic state to be an -impracticable conception, a utopian -dream, human nature being what it is, -<span class='pageno' title='15' id='Page_15'>[15]</span>and the immutable laws of nature being -what they are. But there is not a little in -Socialistic doctrine and aspirations that is -high and noble; there are things, too, that -are achievable and desirable.</p> - -<p class='c007'>And to the extent that Socialism is an -antidote to and a check upon excessive -individualism and holds up to a busy and -self-centered and far from perfect world, -grievances to be remedied, wrongs to be -righted, ideals to be striven for, it is a -force distinctly for good.</p> - -<p class='c007'>Still less do I mean to reflect upon the -labor union movement, which I regard as -an absolutely necessary element in the -scheme of our economic life. Its leaders -have acted with admirable patriotism in -this crisis of the Nation, and on the whole -have been a factor against extreme -tendencies and irrational aspirations.</p> - -<p class='c007'>Trades unions have not only come to -stay, but they are bound, I think, to become -an increasingly potent factor in our -industrial life. I believe that the most -effective preventive against extreme -State Socialism is frank, free and far-reaching -co-operation between business -and trades unions sobered and broadened -<span class='pageno' title='16' id='Page_16'>[16]</span>increasingly by enhanced opportunities, -rights and responsibilities.</p> - -<h3 class='c008'>V</h3> - -<p class='c009'>Business must not deal grudgingly -with labor. We business men must not -look upon labor unrest and aspirations as -temporary “troubles,” as a passing phase, -but we must give to labor willing and -liberal recognition as partner with capital. -We must under all circumstances -pay as a minimum a decent living wage to -everyone who works for a living. We -must devise means to cope with the problem -of unemployment and to meet the -dread advent of sickness, incapacity and -old age in the case of those whose means -do not permit them to provide for a rainy -day.</p> - -<p class='c007'>We must bridge the gulf which now -separates the employer and the employee, -the business man and the farmer, if the -existing order of civilization is to persist. -We must welcome progress and seek to -further social justice. We must translate -into effective action our sympathy for and -<span class='pageno' title='17' id='Page_17'>[17]</span>our recognition of the rights of those -whose life, in too many cases, is now a -hard and weary struggle to make both -ends meet, and who too often are oppressed -by the gnawing care of how to -find the wherewithal to provide for themselves -and their families. We must, by -deeds, demonstrate convincingly the genuineness -of our desire to see their burden -lightened.</p> - -<p class='c007'>We must all join in a sincere and sustained -effort towards procuring for the -masses of the people more of ease and -comfort, more of the rewards and joys of -life than they now possess. I believe -this is not only our duty but our interest, -because if we wish to preserve the -fundamental lines of our present social -system we must leave nothing practicable -undone to make it more satisfactory and -more inviting than it is now to the vast -majority of those who toil. And I do not -mean those only who toil with their hands, -but also the professional men, the men -and women in modest salaried positions, -in short, the workers in every occupation.</p> - -<p class='c007'>Even before the war, a great stirring -and ferment was going on in the land. -<span class='pageno' title='18' id='Page_18'>[18]</span>The people were groping, seeking for a -new and better condition of things. The -war has intensified that movement. It -has torn great fissures in the ancient -structure of our civilization. To restore -it will require the co-operation of all -patriotic men of sane and temperate -views, whatever may be their occupation -or calling or political affiliations. It cannot -be restored just as it was before.</p> - -<p class='c007'>The building must be rendered more -habitable and attractive to those whose -claim for adequate houseroom cannot -be left unheeded, either justly or safely. -Some changes, essential changes, must -be made.</p> - -<p class='c007'>I have no fear of the outcome and of the -readjustment which must come. I have -no fear of the forces of freedom unless -they be ignored, repressed or falsely and -selfishly led.</p> - -<p class='c007'>But this is not the time for settling -complex social questions. When your -house is being invaded by burglars you -do not discuss family questions. Let us -win the war first. Nothing else must now -be permitted to occupy our thoughts and -divert our aims.</p> - -<p class='c007'><span class='pageno' title='19' id='Page_19'>[19]</span>When we shall have attained victory -and peace, then will be the time for us to -sit down and reason together and make -such changes in political and social conditions -as, after full and fair discussion, -free from heat and passion, the enlightened -public opinion of the country deems -requisite.</p> -<div class='pbb'> - <hr class='pb c002' /> -</div> - -<div class='nf-center-c0'> -<div class='nf-center c000'> - <div><span class='xlarge'>Part Two</span></div> - <div class='c002'><span class='large'>The Myth of</span></div> - <div><span class='large'>“A Rich Man’s War”</span></div> - </div> -</div> - -<div class='pbb'> - <hr class='pb c002' /> -</div> - -<div class='chapter'> - <span class='pageno' title='23' id='Page_23'>[23]</span> - <h2 class='c005'><span class='sc'>The Myth of</span> <br /> <span class='sc'>“A Rich Man’s War”</span></h2> -</div> - -<p class='drop-capa0_2_0_6 c006'>Since Pacifism and semi-seditious -agitation have become both unpopular -and risky, the propagandists of -disunion have been at pains in endeavoring -to insidiously affect public sentiment by -spreading the fiction that America’s -entrance into the war was fomented by -“big business” from selfish reasons and for -the purpose of gain. In the same line of -thought and purpose they proclaim that -this is “a rich man’s war and a poor man’s -fight” and that wealth is being taxed here -with undue leniency as compared to the -burden laid upon it in other countries.</p> - -<p class='c007'>These assertions are in flat contradiction -to the facts:</p> - -<p class='c007'>Nothing is plainer than that business -and business men had everything to gain -by preserving the conditions which existed -during the two and a half years prior -to April, 1917, under which many of them -<span class='pageno' title='24' id='Page_24'>[24]</span>made very large profits by furnishing -supplies, provisions and financial aid to -the Allied nations, taxes were light and -this country was rapidly becoming the -great economic reservoir of the world.</p> - -<p class='c007'>Nothing is plainer than that any sane -business man in this country must have -foreseen that if America entered the war -these profits would be immensely reduced, -and some of them cut off entirely, because -our Government would step in and -take charge; that it would cut prices right -and left, as in fact it has done; that -enormous burdens of taxation would have -to be imposed, the bulk of which would -naturally be borne by the well-to-do; in -short, that the unprecedented golden -flow into the coffers of business was bound -to stop with our joining the war; or, at -any rate, to be much diminished.</p> - -<p class='c007'>The best indication of the state of -feeling of the financial community is -usually the New York Stock Exchange. -Well, every time a ship with Americans -on board was sunk by a German submarine -in the period preceding our entrance -into the war, the stock market -shivered and prices declined.</p> - -<p class='c007'><span class='pageno' title='25' id='Page_25'>[25]</span>When, a little over a year ago, Secretary -Lansing declared that we were “on -the verge of war,” a tremendous smash in -prices took place on the Stock Exchange. -That does not look, does it, as if rich men -were particularly eager to bring on war or -cheered by the prospect of having war?</p> - -<p class='c007'>But, it is said, the big financiers of New -York were afraid that the money loaned -by them to the Allied nations might be -lost if these nations were defeated, and -therefore they manoeuvred to get America -into the war in order to save their investments. -A moment’s reflection will -show the utter absurdity of that charge.</p> - -<p class='c007'>American bankers have loaned to the -Allied nations—almost entirely to the -two strongest and wealthiest among them, -France and England—about two billions -of dollars since the war started in 1914.</p> - -<p class='c007'>These two billions of dollars of Allied -bonds are not held, however, in the -coffers of Eastern bankers, but have been -distributed throughout the country and -are being owned by thousands of banks -and other corporations and individuals.</p> - -<p class='c007'>Moreover, they form an insignificant -portion of the total debts of the Allied -<span class='pageno' title='26' id='Page_26'>[26]</span>nations; they are offset a hundredfold by -their total assets. Even if those nations -were to have lost the war it is utterly inconceivable -that they would ever have -defaulted upon that particular portion of -their debt, because, being their <em>foreign</em> -debt, it has a special standing and intrinsic -security.</p> - -<p class='c007'>It is upon the punctual payment of its -foreign obligations that a nation’s credit -in the markets of the world largely -depends, and the maintenance of their -world credit was and is absolutely vital -to England and France. Furthermore, -the greater portion of these obligations -was secured by the deposit of collateral -in the shape of American railroad and -other bonds, etc., which were more than -sufficient in value to cover the debt.</p> - -<p class='c007'>But let us assume for argument’s sake -that the Allies had been defeated and had -defaulted, for the time being, upon these -foreign debts; let us assume that the entire -amount of Allied bonds placed in -America had been held by rich men in -New York and the East instead of being -distributed, as it is, throughout the -country. Why, is it not perfectly manifest -<span class='pageno' title='27' id='Page_27'>[27]</span>that a single year’s American war -taxation and reduction of profits would -take out of the pockets of such assumed -holders a vastly greater sum than any -possible loss they could have suffered by -a default on their Allied bonds, not to -mention the heavy taxation which is -bound to follow the war for years to -come and the shrinkage of fortunes -through the decline of all American -securities in consequence of our entrance -into the war?</p> - -<p class='c007'>Is it not perfectly manifest to the -meanest understanding that any business -man fomenting our entrance into the war -for the purpose of gain must have been -entirely bereft of his senses and would -have been a fit subject for the appointment -of a guardian to take care of -himself and his affairs?</p> - -<h3 class='c010'>II</h3> - -<p class='c009'>Now as to the allegations concerning -taxation: 1. The largest incomes -are taxed far more heavily here -than anywhere else in the world.</p> - -<p class='c007'><span class='pageno' title='28' id='Page_28'>[28]</span>The maximum rate of income taxation -here is 67%. In England it is 42½%. -Ours is therefore 50% higher than England’s -and the rate in England is the -highest prevailing anywhere in Europe. -Neither republican France nor democratic -England—containing in their cabinets -Socialists and representatives of -labor—nor autocratic Germany have an -income tax rate anywhere near as high as -our maximum rate. And in addition to -the federal tax we must bear in mind our -state and municipal taxes.</p> - -<p class='c007'>2. Moderate and small incomes, on the -other hand, are subject to a far smaller -rate of taxation here than in England.</p> - -<p class='c007'>In America, incomes of married men -up to $2,000 are not subject to any -federal income tax at all.</p> - -<div class='lg-container-b c002'> - <div class='linegroup'> - <div class='group'> - <div class='line'>In England the tax on incomes of $1,000 is 4½%</div> - <div class='line'>In England the tax on incomes <span class="dblspace">of 1,500</span> is 6¾%</div> - <div class='line'>In England the tax on incomes <span class="dblspace">of 2,000</span> is 7⅞%</div> - </div> - </div> -</div> - -<p class='c007'>(These are the rates if the income is -derived from salaries or wages; they are -still higher if the income is derived from -rents or investments.)</p> - -<p class='c007'>The English scale of taxation on incomes -of, say, $3,000, $5,000, $10,000 and -<span class='pageno' title='29' id='Page_29'>[29]</span>$15,000, respectively averages as follows, -as compared to the American rates for -married men:</p> - -<table class='table0' summary='Income tax rates in England and America'> - <tr> - <th class='c011'> </th> - <th class='c012'>In England</th> - <th class='c013'>In America</th> - </tr> - <tr> - <td class='c011'>Income tax rate on $3,000</td> - <td class='c012'>14%</td> - <td class='c013'>⅔ of 1%</td> - </tr> - <tr> - <td class='c011'>Income tax rate <span class="dblspace">on 5,000</span></td> - <td class='c012'>16%</td> - <td class='c013'>1½%</td> - </tr> - <tr> - <td class='c011'>Income tax rate on 10,000</td> - <td class='c012'>20%</td> - <td class='c013'>3½%</td> - </tr> - <tr> - <td class='c011'>Income tax rate on 15,000</td> - <td class='c012'>25%</td> - <td class='c013'>5%</td> - </tr> -</table> - -<p class='c009'>(If we add the so-called “occupational” -tax, our total taxation on incomes of -$10,000 is 6¾%, and on incomes of -$15,000, 9¾%.)</p> - -<p class='c007'>In other words, our income taxation is -more democratic than that of any other -country, in that the largest incomes are -taxed much more heavily, and the small -and moderate incomes much more lightly -than anywhere else, and incomes up to -$2,000 for married men not taxed at all.</p> - -<p class='c007'>3. It is true, on the other hand, that -on very large incomes as distinguished -from the largest incomes, our income tax -is somewhat lower than the English tax, -but the difference by which our tax is -lower than the English tax is incomparably -more pronounced in the case of -small and moderate incomes than of -large incomes. Moreover, if we add to -<span class='pageno' title='30' id='Page_30'>[30]</span>our income tax our so-called excess -profit tax, which is merely an additional -income tax on earnings derived from -business, we shall find that the total tax -to which rich men are subject is in the -great majority of cases heavier here than -in England or anywhere else.</p> - -<p class='c007'>4. It is likewise true that the English -war excess profit tax is 80% (less various -offsets and allowances) whilst our so-called -excess profit tax ranges from 20% -to 60%.</p> - -<p class='c007'>But it is entirely misleading to base a -conclusion as to the relative heaviness of -the American and British tax merely on -a comparison of the rates, because the -English tax is assessed on a wholly different -basis from the American tax. As -a matter of fact, Congress has estimated -that the 20% to 60% tax on the American -basis will produce approximately the -same amount in dollars and cents as the -80% tax is calculated to produce in -England. (I know I shall be answered -that we have twice the population of -England and twice the wealth. But it -must be borne in mind that a far larger -proportion of our wealth is represented -<span class='pageno' title='31' id='Page_31'>[31]</span>by farms and other non-industrial property -and that a far larger proportion of -our people than of the British people are -engaged in agricultural pursuits which -are not affected by the excess profit tax. -I believe it will be found that the total -wealth employed in business in America -is not so greatly superior to the total -wealth similarly employed by Great -Britain.)</p> - -<p class='c007'><em>The American excess profit law so-called -taxes all profits derived from business</em> over -and above a certain moderate percentage, -regardless of whether or not such profits -are the result of war conditions. The -American tax is a general tax on income -derived from business, in addition to the -regular income tax. <em>The English tax -applies only to excess war profits</em>; that is, -only to the sum by which profits in the -war years exceed the profits on the three -years preceding the war, which in England -were years of great prosperity.</p> - -<p class='c007'>In other words, the English tax is -nominally higher than ours, but it -applies only to war profits. The normal -profits of business, i. e., the profits which -business used to make in peace time, -<span class='pageno' title='32' id='Page_32'>[32]</span>are exempted in England. <em>There, only the -excess over peace profits is taxed. Our tax, -on the contrary, applies to all profits</em> over -and above a very moderate rate on the -money invested in business.</p> - -<p class='c007'>In short, our law-makers have decreed -that normal business profits are taxed -here much more heavily than in England, -while direct war profits are taxed less -heavily. You will agree with me in -questioning both the logic and the justice -of that method. It would seem that it -would be both fairer and wiser and more -in accord with public sentiment if the -tax on business in general were decreased -and, on the other hand, an increased tax -were imposed on specific war profits.</p> - -<p class='c007'>5. Our federal inheritance tax is far -higher than it is in England or anywhere -else. The maximum rate here on direct -descendants is 27½% as against 20% in -England. In addition to that we have -State inheritance taxes which do not -exist in England.</p> - -<p class='c007'>6. Of her total actual war expenditures -(exclusive of loans to her Allies and interest -on war loans), England has raised -less than 15% by taxation (France and -<span class='pageno' title='33' id='Page_33'>[33]</span>Germany far less), while America is -about to raise by taxation approximately -28% of her total war requirements (exclusive -of loans to the Allied nations and -of the amount to be invested in mercantile -ships, which, being a productive -investment, cannot properly be classed -among war expenditures.)</p> - -<h3 class='c008'>III</h3> - -<p class='c009'>Much is being said about the -plausible sounding contention that -because a portion of the young -manhood of the Nation has been conscripted, -therefore money also must be -conscripted. Why, that is the very -thing the Government has been -doing. It has conscripted a portion, a -relatively small portion, of the men of the -Nation. It has conscripted a portion, a -large portion, of the incomes of the Nation. -If it went too far in conscripting men, the -country would be crippled. If it went -too far in conscripting incomes and earnings, -the country would likewise be -crippled.</p> - -<p class='c007'><span class='pageno' title='34' id='Page_34'>[34]</span>Those who would go further and conscript -not only incomes but capital, I -would ask to answer the riddle not only -in what equitable and practicable manner -they would do it,<a id='r1' /><a href='#f1' class='c014'><sup>[1]</sup></a> but what the Nation -would gain by it?</p> - -<p class='c007'>Only a trifling fraction of a man’s -property is held in cash. If they conscript -a certain percentage of his possessions -in stocks and bonds, what would the -Government do with them?</p> - -<p class='c007'>Keep them? That would not answer -its purpose, because the Government -wants cash, not securities.</p> - -<p class='c007'>Sell them? Who is to buy them when -everyone’s funds would be depleted?</p> - -<p class='c007'>If they conscript a certain percentage -of a man’s real estate or mine or farm or -factory, how is that to be expressed and -converted into cash?</p> - -<p class='c007'>Are conscripted assets to be used as a -basis for the issue of Federal Reserve -Bank Notes? That would mean gross -<span class='pageno' title='35' id='Page_35'>[35]</span>inflation with all its attendant evils, -dangers and deceptions.</p> - -<p class='c007'>Would they repudiate a percentage of -the National debt? Repudiation is no -less dishonorable in a people than in an -individual, and the penalty for failure to -respect the sanctity of obligations is no -different for a nation than for an individual.</p> - -<p class='c007'>The fact is that the Government would -gain nothing in the process of capital -conscription and the country would be -thrown into chaos for the time being. -The man who has saved would be penalized, -he who has wasted would be favored. -Thrift and constructive effort, resulting -in the needful and fructifying accumulation -of capital would be arrested and -lastingly discouraged.</p> - -<p class='c007'>I can understand the crude notion of -the man who would divide all possessions -equally. There would be mighty little -coming to anyone by such distribution -and it is, of course, an utterly impossible -thing to do, but it is an understandable -notion. But by the confiscation of -capital for Government use neither the -Government nor any individual would be -benefited.</p> - -<p class='c007'><span class='pageno' title='36' id='Page_36'>[36]</span>A vigorously progressive income tax is -both economically and socially sound. -A capital tax is wholly unsound and -economically destructive. It may nevertheless -become necessary in the case of -some of the belligerent countries to -resort to this expedient, but I can conceive -of no situation likely to arise which -would make it necessary or advisable in -this country. More than ever would -such a tax be harmful in times of war and -post-bellum reconstruction, when beyond -almost all other things it is essential to -stimulate production and promote thrift, -and when everything which tends to -have the opposite effect should be rigorously -rejected as detrimental to the -Nation’s strength and well-being.</p> - -<p class='c007'>There is an astonishing lot of hazy -thinking on the subject of the uses of -capital in the hands of its owners. The -rich man can only spend a relatively -small sum of money unproductively or -selfishly. The money that it is in his -power to actually waste is exceedingly -limited. The bulk of what he has must be -spent and used for productive purposes, -just as would be the case if it were spent -<span class='pageno' title='37' id='Page_37'>[37]</span>by the Government, with this difference, -however, that, generally speaking, the -individual is more painstaking and discriminating -in the use of his funds and at -the same time bolder, more imaginative, -enterprising and constructive than the -Government with its necessarily bureaucratic -and routine regime possibly could -be. Money in the hands of the individual -is continuously and feverishly -on the search for opportunities, i. e., for -creative and productive use. In the -hands of the Government it is apt to lose -a good deal of its fructifying energy and -ceaseless striving and to sink instead into -placid and somnolent repose.</p> - -<p class='c007'>Taxation presupposes earnings. Our -credit structure is based upon values, and -values are largely determined by earnings. -Shrinkage of values necessarily affects our -capacity to provide the Government with -the sinews of war.</p> - -<p class='c007'>There need not be and there should -not be any conflict between profits -and patriotism. I am utterly opposed -to those who would utilize their country’s -war as a means to enrich themselves. -Extortionate profits must not be -<span class='pageno' title='38' id='Page_38'>[38]</span>tolerated, but, on the other hand, there -should be a reasonably liberal disposition -toward business and a willingness to see -it make substantial earnings. To deny -this is to deny human nature.</p> - -<p class='c007'>Men will give their lives to their country -as a matter of plain and natural duty; -men, without a moment’s hesitation, will -quit their business and devote their entire -time and energy and effort to the affairs -of the Nation, as a great many have -done and every one of us stands ready to -do, without any thought of compensation. -But, generally speaking, men will not -take business risks, will not venture, will -not be enterprising and constructive, will -not take upon themselves the responsibilities, -the chance of loss, the strain, the -wear and tear and worry and care of intense -business activity if they do not have -the prospect of adequate monetary reward, -even though a large part of that -reward is taken away again in the shape -of taxation.</p> - -<div> - <span class='pageno' title='39' id='Page_39'>[39]</span> -<h3 class='c008'>IV</h3> -</div> - -<p class='c009'>Reverting now to the subject of -the conscription of men, I know I -speak the sentiment of all those beyond -the years of young manhood when I -say that there is not one of us worthy of the -name of a man who would not willingly go -to fight if the country needed or wanted us -to fight. But the country does not want or -call its entire manhood to fight. It does -not even call anywhere near its entire -young manhood. It has called, or intends -to call in the immediate future, -perhaps 25% of its men between 20 and -30 years of age, which means probably -about 4% of its total male population of -all ages. In other words, it calls only for -such number of men as appears indicated -by the needs of the country, and as -corresponds to a prudent estimate of the -task before it.</p> - -<p class='c007'>I am far from meaning to compare the -loss of income or profits with the risk of -life or health to which men on the firing -line are exposed, or to compare financial -sacrifices to those willingly and proudly -borne by the youth of our land and shared -<span class='pageno' title='40' id='Page_40'>[40]</span>by those near and dear to them. But -I do believe it to be a just contention—not -in the interest of the individual, but -of the welfare of the community—that -the same principle which is applied in the -case of the conscription of men should -hold good for the conscription of income -or profits; i. e., so much thereof should be -taken by the State as is required by a -prudent estimate of the task before it -and as best promotes the accomplishment -of that task, bearing in mind that the -preservation of the country’s economic -power is next in importance for winning -the war to its military power. Vindictiveness, -extremist theories and demagogism -ought to have no place in arriving at that -estimate.</p> - -<p class='c007'>I have no patience with or tolerance for -the “war profiteer,” as the term is understood. -The “war hog” is a nuisance and -an ignominy. He should be dealt with -just as drastically as is possible without -doing damage to national interests in the -process. But neither have I patience -with nor tolerance for the man who would -use his country’s war as a means to -promote his pet theories or his political -<span class='pageno' title='41' id='Page_41'>[41]</span>fortunes at the expense of national unity -at a time when we should all be united in -mutual good will and co-operative effort.</p> - -<p class='c007'>And if we do talk about the formula, -“conscription of men—conscription of -wealth,” let it be understood that we have -called less than 5% of the Nation’s entire -male population, but have called from -incomes, business profits and other imposts -falling principally on the well-to-do, -approximately 90% of our war taxation, -not to mention the contribution to the -Red Cross, the Y. M. C. A. and other war -relief activities.</p> - -<p class='c007'>Let me add in passing that <em>the children -of the well-to-do have been taken for the war -in proportionately greater numbers than -the children of the poor</em>, because those -young men who are needed at home to -support dependents or to maintain essential -war industries are exempted from -the draft.</p> - -<p class='c007'>Moreover, to an overwhelming degree -the sons of the well-to-do have not waited -to be conscripted. They have volunteered -in masses—a far greater percentage -of them than those in less -advantageous circumstances. That is -<span class='pageno' title='42' id='Page_42'>[42]</span>merely as it should be. Having greater -advantages, they have corresponding -duties. Not having dependents to take -care of, they can better afford to volunteer -than those less fortunately situated.</p> - -<p class='c007'>But the patriotic zeal of the sons of the -well-to-do in coming forward to offer -their lives to the country does give a -doubly false and sickening sound to the -ranting of the agitator who would arouse -class hatred—who calls this “a rich man’s -war and a poor man’s fight” when an -overwhelming percentage of the sons of -the men of means have eagerly and freely -offered themselves for military service, -when <em>the draft exemption regulations discriminate -not, as in former wars, in favor -of the rich man’s son but in favor of the -poor woman’s son</em>, and when capital and -business pay more than four-fifths of our -war taxation directly and a large share of -the remaining one-fifth indirectly.</p> - -<p class='c007'>I do not say all this to plead for a reduction -of the taxation on wealth, or in -order to urge that no additional taxes be -imposed on wealth if need be. There is -no limit to the burden which, in time of -stress and strain, those must be willing -<span class='pageno' title='43' id='Page_43'>[43]</span>to bear who can afford it, except only -that limit which is imposed by the consideration -that taxation must not reach -a point where the business activity of the -country becomes crippled, and its economic -equilibrium is thrown out of gear, -because that would harm every element -of the commonwealth and diminish the -war-making capacity of the Nation.</p> - -<h3 class='c008'>V</h3> - -<p class='c009'>The question of the individual is not -the one that counts. The question -is not what sacrifices capital should -and would be willing to bear if called -upon, but what taxes it is <em>to the public -advantage</em> to impose.</p> - -<p class='c007'>Taxation must be sound and wise and -scientific, and cannot be laid in a haphazard -way or on impulse or according to -considerations of politics. Otherwise, the -whole country will suffer. History has -shown over and over again that the laws -of economics cannot be defied with impunity -and that the resulting penalty -falls upon all sections and classes.</p> - -<p class='c007'><span class='pageno' title='44' id='Page_44'>[44]</span>I realize but too well that the burden -of the abnormally high cost of living, -caused largely by the war, weighs heavily -indeed upon wage earners and still more -upon men and women with moderate -salaries. I yield to no one in my desire to -see everything done that is practicable to -have that burden lightened. But excessive -taxation on capital will not accomplish -that; on the contrary, it will -rather tend to intensify the trouble.</p> - -<p class='c007'>We men of business are ready and willing -to be taxed in this emergency to the -very limit of our ability, and to make -contributions to war relief work and other -good causes, without stint. The fact is -that, generally speaking, capital engaged -in business is now being taxed in America -more heavily than anywhere else in the -world. We are not complaining about -this; we do not say that it may not become -necessary to impose still further -taxes; we are not whimpering and squealing -and agitating, but—we do want the -people to know what are the present facts, -and we ask them not to give heed to the -demagogue who would make them believe -that we are escaping our share of the -common burden.</p> - -<p class='c007'><span class='pageno' title='45' id='Page_45'>[45]</span>May I hope that I have measurably -succeeded in demonstrating that the -allegations with which the propagandists -of disunion have been assailing the public -mind are without foundation in fact. -And may I add, in conclusion, that the -charge of “big business” having fomented -our entrance into the war is one which, -apart from its intrinsic absurdity, is a -hateful calumny. Business men, great or -small, are no different from other Americans, -and we reject the thought that any -American, rich or poor, would be capable -of the hideous and dastardly plot to bring -upon his country the sorrows and sufferings -of war in order to enrich himself.</p> - -<p class='c007'>Business men are bound to be exceedingly -heavy financial losers through -America’s entrance into the war. Every -element of self-interest should have caused -them to use their utmost efforts to preserve -America’s neutrality from which -they drew so much profit during the two -and a half years before April, 1917. -Every consideration of personal advantage -commanded men of affairs to stand -with and support the agitation of the -“peace-at-any-price” party. They -<span class='pageno' title='46' id='Page_46'>[46]</span>spurned such ignoble reasoning; they rejected -that affiliation; they stood for war -when it was no longer possible, with -safety and honor, to maintain peace, because -they are patriotic citizens first and -business men afterward.</p> - -<p class='c007'>The insinuation that “big business” -had any share in influencing our Government’s -decision to enter the war is an -insult to the President and Congress, a -libel on American citizenship, and a -malicious perversion or ignorant misconception -of the facts. Those who continue -to circulate that insinuation lay -themselves open to just suspicion of their -motives and should receive neither credence -nor tolerance.</p> - -<hr class='c015' /> -<div class='footnote' id='f1'> -<p class='c016'><a href='#r1'>1</a>. It is true that a few years ago a capital levy was made in -Germany, but the percentage of that levy was so small as to -actually amount to no more than an additional income tax, -and that at a time when the regular income tax in Germany -was very moderate as measured by the present standards of -income taxation.</p> -</div> -<p> </p> -<p> </p> - -<div class='pbb'> - <hr class='pb c002' /> -</div> - -<div class='nf-center-c1'> -<div class='nf-center c000'> - <div><span class='large'>Transcriber’s Note:</span></div> - </div> -</div> - -<p class='c001'>Any obvious errors in spelling or punctuation have been corrected.</p> - -<p> </p> -<p> </p> -<hr class="full" /> -<p>***END OF THE PROJECT GUTENBERG EBOOK FRENZIED LIBERTY AND THE MYTH OF "A RICH MAN'S WAR"***</p> -<p>******* This file should be named 51055-h.htm or 51055-h.zip *******</p> -<p>This and all associated files of various formats will be found in:<br /> -<a href="http://www.gutenberg.org/dirs/5/1/0/5/51055">http://www.gutenberg.org/5/1/0/5/51055</a></p> -<p> -Updated editions will replace the previous one--the old editions will -be renamed.</p> - -<p>Creating the works from print editions not protected by U.S. copyright -law means that no one owns a United States copyright in these works, -so the Foundation (and you!) can copy and distribute it in the United -States without permission and without paying copyright -royalties. 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