ich, whilst they would mainly
fall on the well-to-do, would be in no way burdensome, and would
produce a very large aggregate of revenue.

What seems to me in principle a very sensible tax, has been suggested,
namely, _a tax on purchases_ (_i.e._, each single purchase) of all
kinds of merchandise (excepting foodstuffs, and probably raw material)
of one cent for each dollar or greater part thereof, exempting single
purchases of less than say five dollars.

This tax, _which should be paid by the purchaser_, would produce a very
large revenue. It would be borne mainly by the well-to-do, would be
more widely distributed than almost any other form of taxation and
would be felt but very little. It would be easily and cheaply collected
and would begin to accrue much sooner than most other taxes.

4. I am not convinced that the total amount which needs to be spent or
which as a matter of fact can be spent in the course of the year
requires so huge a sum to be raised by taxation as our legislators
appear to contemplate.

The policy of raising a large portion of war expenditures by taxation
is wise and sound. But to be iconoclastic in applying that policy, to
make that portion so large as to chill the spirit and lame the
enterprise of the country is neither good politics nor good economics.

The present has its rights as well as the future. Sacrifices should be
reasonably averaged. An annual sinking fund of 5 per cent. would
extinguish the war debt in fifteen years.

5. Democratic England under two Prime Ministers belonging to the
Liberal party has shown how huge amounts of increased revenue--much
greater relatively and greater even absolutely than are required in
this country during the first year of the war--can be obtained by
taxation without undue dislocation of the existing economic structure
and without banefully affecting the country's prosperity. While it
would not do for us to follow the English method of taxation in all
respects, it would seem the part of wisdom for us to profit from her
successful experience. And I hope it will not be deemed presumptuous if
I venture to suggest that it might not be amiss for our Government in
this connection to permit to the practical experience and judgment of
business men some recognized scope in the deliberations, as I
understand was freely done in England. I am entirely certain that the
spokesmen for the business community would give their time, their best
thought and th