of the people. In other words, a tax on capital is simply a form of
income tax assessed, not according to a man's income, but according to
the assets of which he is possessed. The effect of such a tax would
be that he who has spent everything that he has earned on his own
enjoyment would go scot free in the matter of the capital tax, and
would be rewarded for his improvidence by being asked to make no
sacrifice; while his thrifty brother who, out of a smaller income, has
set aside a certain proportion during the last twenty or thirty years,
would have to hand over a portion of his current income assessed
upon the value of the assets into which he has put his savings.
Incidentally, it may be remarked that it would take years to make this
necessary valuation, and that it would probably be done in a very
inequitable manner by untrained and incompetent officials. But the
important point is this, that if the Government shows a tendency to
take the possession of assets as a basis for taxation it will be
directly encouraging those who spend their whole income in riotous
living and frivolous amusement, and discouraging those who help to
increase mankind's output by adding to the capital available.

Finally, it may be added that the shyness of the saver will be greatly
diminished if he can feel that there is a trustworthy machinery of
company promotion, so that he can rely on any savings that he puts
into industry having at least a fair chance of yielding him a fair
reward. This subject is too vast to enter into at present, but it
is one to which those who are responsible for the management of our
financial affairs cannot give too much attention. Every time the real
investor is swindled out of his money there is more than a chance that
he will look upon all forms of saving as a folly to be left to the
credulous. It is easy to say that it was his own fault, that he ought
to have been more careful, or consulted a better broker; but he will,