PROBABLE EFFECTS 75

crisis of this kind it is not always possible to look too
closely into questions of equity in raising money,
It is necessary, however, to look very closely, into the
probable economic effects of £ny suggested form of
taxation, and, if we find that it is likely to diminish
the future wealth production of the nation, to reject
it, however attractive it may seem to be at first
sight. A levy on capital which would certainly
check the incentive to save, by the fear that, if such
a thing were once successfully put through, it might
very likely be repeated, would dry up the springs
of that supply of capital which is absolutely essential
to the increase of the nation's productive power.
Moreover, business men who suddenly found them-
selves shorn "of 10 to 20 per cent, of their available
capital would find their ability to enter into fresh
enterprise seriously diminished just at the very time
when it is essential that all the organisers of pro-
duction and commerce in this country should be
most actively engaged in every possible form of
enterprise, in order to make good the ravages
of war.