TOPICS OF THE DAY.
PRESIDENT ROOSEVELT ON MULTI- MILLIONAIRES.
IT is quite natural that the President of the United States should be the first among ruling statesmen to denounce the new oligarchy which everywhere begins to threaten ancient commercial order, and even, occasionally and in places, political security. The multi-millionaires- by which we mean men with the uncontrolled disposal of more than ten millions sterling apiece—are coming even in Europe, but as yet they cannot be said to have arrived. The aggregation of colossal fortunes is checked on the European Continent by the independence of the different countries, by severe laws of distribution at death, and by the desire of the rich to enter on careers other than that of money- making. In this country Free-trade still checks the monopolies which are so easily secured when the world at large cannot pour in competing produce, and which on the whole furnish the most rapid methods of accumulation. Moreover, idiosyncrasy counts even in commerce, and the British multi-millionaire almost invariably desires either to " found a family," which is n process requiring great outlays, or to achieve distinction by something other than continuous devotio'n to " business," which his son or other successor may probably denounce as somewhat sordid. The American has feir modes of acquiring distinction open to him, and often prefers to found 'a sort of commercial dynasty,—three instances, at least, must be known to all our readers. The American, too, who controls enormous wealth has a better chance of acquiring direct power than any Englishman, how- ever rich, could readily secure. Shareholders in this country are still allowed a direct voice in the manage- ment of their own affairs, but in America eleven men are said to exercise " a controlling influence " over the entire railway system of the Republic. The United Kingdom, moreover, forms a single State ; and although one has heard stories of corruption during the railway mania, and *rumours of what is called " pressure " on behalf of certain pecuniary interests are common enough, it would be very difficult indeed by any outlay whatever to deprive Parlia- ment of its independence as regards any question in which the public interest was deeply concerned. If American whispers may be trusted, however, the purchase of a State Legislature is not impossible, and the usual legal system, with its badly paid Judges and its multiplicity of appeals, allows an advantage to wealth which in unscrupulous hands is found to be very great indeed, so great that no private dealer dare face a "syndicate" of millionaires. Moreover, the gigantic latent resources of the Republic so enlarge the vista of commercial possibilities that within a generation or two fortunes may be accumulated on a scale unknown since the Roman Republic gave way to the Roman Empire, and Crassus was admitted, solely on account of his wealth, into the minute Political Committee which for a moment scattered death among its rivals in the race for power as it were out of a watering-pot. Ten millions sterling strikes Europeans as a splendid fortune •, but with two hundred millions an able politician might seat a party in Parliament, or buy a municipality, or promote a revolution, or even, if favoured by circumstances, raise an army as Wallenstein did. Few Americans, therefore, who study the political phenomena of their country are prepared to deny that the President's warning as to public danger from " unhealthily " large fortunes is required, and should be pondered with a view to possible action. He had a right to notice this like any other cloud in the national sky.
It is about the line which such action should pursue that there will be most difference of opinion. Mr. Roosevelt is reported to have suggested that "it may hereafter be necessary to consider the adoption of some scheme, such as that of a progressive tax upon all fortunes beyond a certain amount, so framed as to put it out of the power of one of these enormous fortunes to hand on more than a certain amount to any one individual. Such a tax would, of course, be imposed by the national and not by a State Government." This suggestion was received by the Washington audience assembled to see the President inaugurate a new addition to the legislative building "with great applause," but seems within the next few days to have created great doubt among the reflective, a doubt which the President himself will probably share at a later period. Mr. Roosevelt is apt to think aloud, and, like most men addicted to that educative practice, to suppress for oratorical reasons the qualifying clauses which may change a speculation into a plan. His idea as at present expressed admits a little too clearly the Socialistic principle. If the community has a right to tax a man out of his wealth because it is too great for the general interest, it must surely have a right to fix the amount of " greatness " which it thinks injurious ; and care will be needed that its judgment is not perverted by any idea of relief to its own necessities. Otherwise we might have the masses convincing themselves that £500 a year was quite sufficient for anybody, the burden of taxation thrown entirely on the rich, and society reduced to the dead level which is inconsistent with progressive civilisa- . tion. It would be far better to fix a danger-point on the economic barometer, and decree that beyond that point a testator with many millions must distribute either propor- , tionately to relatives, as is the system in many States of the Continent, or, maintaining liberty of bequest, must only bequeath legacies within that amount to those whom he selects. The man, say, with fifty millions must make fifty legatees. The public, which is the ultimate lawgiver, would then be disinterested, and could fix the danger- point after an unbiassed study of its own economic position. Even then some risk would be run of inter- fering with that charm of industry and enterprise which induces men to accumulate more than they can eat, and. gradually produces the public fortune which is one of the conditions of civilisation. If nobody may grow rich, you cannot have art, you cannot have public works not paid for out of taxes, and it is very doubtful whether you can have an active and vigorous commerce. It takes a rich class to run great pecuniary risks, and without great pecuniary risks you can neither have grand mercantile fleets, nor accumulations of goods, nor risky and novel commercial enterprises. Half the farmers of England are ruined by having to thresh out their corn too soon ; and if there were no reservoirs of wealth applicable to commerce that would be the position of every. enterprise. It is because wage- earners cannot accumulate that they so often remain subordinates.
We have not mentioned the other objection to this kind of legislation which affects some minds very strongly. Whence, it may be asked, does the community derive its right to deprive a man of his own, that which, it may be, he has actually created,—as, for instance, a man creates a farm when he " stubs Thurnaby waiiste " to do it, or when he sinks le mine where no mine was ? It is extremely difficult to answer the question without either admitting the Socialist contention that the com- munity is the only rightful owner of property, or denying its right to levy direct taxes. But happily there is no earthly necessity for making the inquiry, for the question is settled. As a matter of fact, the community does take from the unwilling whenever it levies a direct tax, and does even in England provide against dangerous accumulations of wealth. The Thellusson Act, as it is called, directly prohibits the accumulation of wealth beyond a life or lives in being and twenty-one years,— about as strong an interference with the right of a. man "to do what he will with his own" as can be conceived. The motive of that Act was not dread of a new oligarchy, but rather dread lest capital should be sterilised for long periods of time to the impoverishment of the community. , But the motives in both cases are political, and one is just as good as the other.
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