It is upon the punctual payment of its foreign obligations that a nation's credit in the markets of the world largely depends, and the maintenance of their world credit was and is absolutely vital to England and France. Furthermore, the greater portion of these obligations is secured by the deposit of collateral in the shape of American railroad and other bonds, etc., which are more than sufficient in value to cover the debt. But let us assume for argument's sake that the Allies had been defeated and had defaulted, for the time being, upon these foreign debts; let us assume that the entire amount of Allied bonds placed in America had been held by rich men in New York and the East instead of being distributed, as it is, throughout the country. Why, is it not perfectly manifest that a single year's American war taxation and reduction of profits would take out of the pockets of such assumed holders a vastly greater sum than any possible loss they could have suffered by a default on their Allied bonds, not to mention the heavy taxation which is bound to follow the war for years to come and the shrinkage of fortunes through the decline of all American securities in consequence of our entrance into the war? Is it not perfectly manifest to the meanest understanding that any business man fomenting our entrance into the war for the purpose of gain must have been entirely bereft of his senses and would have been a fit subject for the appointment of a guardian to take care of himself and his affairs? II Now as to the allegations concerning taxation. 1. The largest incomes are taxed far more heavily here than anywhere else in the world. The maximum rate of income taxation here is 67 per cent. In England it is 42-1/2 per cent. Ours is therefore 50 per cent. higher than England's and the rate in England is the highest prevailing anywhere in Europe. Neither republican France nor democratic England--containing in their cabinets Socialists and representatives of labour--nor autocratic Germany have an income tax rate anywhere near as high as our maximum rate. And in addition to the federal tax we must bear in mind our state and municipal taxes. 2. Moderate and small incomes, on the other hand, are subject to a far smaller rate of taxation here than in England. In America, incomes of married men up to $2,000 are not subject to any federal income tax at all. In England the tax on incomes of $1,000 is 4-1/2% " " " " " " " 1,500 is 6-3/4% " " " " " " " 2,000 is 7-7/8% (These are the rates if the income is derived from salaries or wages; they are still higher if the income is derived from rents or investments.) The English scale of taxation on incomes of, say, $3,000, $5,000, $10,000 and $15,000, respectively averages as follows, as compared to the American rates for married men: In In England America.