The Guardian (And Evening Star, with which is in corporated the West Coast Times.) MONDAY, MAY l9th, 1924.

Hokitika Guardian, 19 May 1924, Page 2

The Guardian (And Evening Star, with which is in corporated the West Coast Times.) MONDAY, MAY l9th, 1924.

WEALTH AS COMMUNITY VALUE. The use ol private wealth is its constmotive value, anil the community desires its return, not iu capital levies to absorb j rivnte wealth, but in the effective u-e of the money for industry and enterprises. The groat example of the day of the effective user of private wealth is Henry Ford of motor ear fame. Mr Ford has soared far above considerations of what might Ite done with his wealth by way of capital levies. He bss said it would make little difference to him so far as personal comfort- or expenditures are concerned, whether the taxes took ono or ninety-nine per cent of his profits. If lie bad but ono per cent remaining it would still supply all lie would care to spend on himself. But whatever was taken by the officials in levies or taxation meant just so much in the curtailment of his enterprises. The balance remaining for industrial development would be so much less, and the working man would have that much less to earn by labor profitably employed. In America, ns elsewhere, war taxation has gone fiP enprnpusly, on< *

I Mi l-onl ha- .-aid if the pre.-oiil scale of taxation had applied to the earnings of me Ford ( • -in).any from the beginning. nothing like whin has In en achieved by the (1:11(1:1111 i)i indilsirial expansion would hare been 1 ossilde. 80 dial l»v undue luxation o! w.-alrti. tin-

community get- fnmi the moneyed man 10-. than it would il the sc-oallia. capitalist were allowed to use nnue 01 hi- wenlili iu industry. Huge sums are sunk ill industries, and many eiilcr--1 ri.-es are ventured il|.nn, involving enormous capital e\| enditlire. That money makes the wheels of industry revolve the better. All industries and all enterprise.- are not a success financially to the owners or shareholder-, and then capital is -link perhaps indefinitely, hot it I- so placed that labor is aide to derive much employment, which, wore die money appropriated in tin- fiist instance hv taxation, would ne 10-t so far a- gen ual community value was concerned. The State might li.-e the money raised liy capital levies to par oil the national debt. Such a step would involve the departure of mil!ie. 11 s from cm- shore- io other parts 01 toe world. I’ohhed of dial enormous aaiuinit ol credit. a fiuau. ial -tiingency •> mild result in the <nuniry which waaild l.e felt fai and wide. In every avenue of industry and commerce there would he a .stringency. The hanks would have less money on deposit and consequently less to lend out in ovo'drafts to assist trade and general intercourse. 'l'lie Government, aithough it. would lie ro-sihle 10 icdure taxation I'm the time heing, would have Ic.-s to lax I icon u si* values would he dc--1 iceinted and the entiling power ol the public general! v curtailed. In

short, a great national financial disaster would overtake the country. Any step therefore to affect the credit of the country lias a far-reaching etloct to those who would rush in with tempo;nrv panaceas lo relieve the complex situation which would ari-c. might make confusion worse confounded. lo derive the best community return from wealth is to encourage capital into the country to he used for new eutevpriscaud not seek to Keep it out or drive it away liy all sorts of alarming taxation proposals which create alarm and concern. A belter undeistanding of the possibilities is !>eing derived, and it is to he hoped the time is not far distant when the last will he heard ol the capital levy.