The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-07-10


nothing which would inevitably tend to raise that
premium and depreciate the value OF the State notes.
a iurtner issue OF state notes would entail precisely
tiose consequences which the government wishes 10
| avoid. Thirdly and lastly, as regards this point he
argues that assuming that forty or fifty millions more
OF state notes might be issued without damage to the
trade OF the country, yet then 1t Is admitted on all
nands even by the expansoniss themselves, that the
channels OF trade would he filled to their utmost
pacity, and that any further increase would entail
great caamities This power, therefore, OF issuing
rnls united quantity Of additional notes should be
resort. quote the observations or the Minister
upon this head as they have genera, interest:-"I
beg You to consider gentlemen that the situation OF
Europe Is not reassuring that we reckon with
absolute certainty upon peace during the next three
or four years, and that, even If dismiss the idea
| of a war; yet the possibility that we may he COM
PEELED to put our forces upon war footing not to
be gansad, and that TINS contingency must, there
fore, also be taken into account In the event. them
that We should need money for this purpose,
other means would be open to us las we found in
1860 than to increase the amount OF the circulating
medium by State notes. and this account
ought not, in time of peace to drive up
the circulation it's utmost limit for were we 80 10
do, the premium silver ia presence of the already
crammed full channels Of circulation and OF the al
ditOna graUdn,tn0 ~ OF the danger of war and ~
OF new issue OF State notes, would rise to such
height that shrink from going into any detailed de-
scrlptiOn OF the situation.
In the United states since the repeal OF the contrac
ton act of April, 1885, IN eQuibrto The policy of
the status quo and let aone prevails In both cOun-
tries, and the conractonists and expansi0nsts are
alike thwarted Then comes the question: Can the
deficit be annihiated by a cutting down of the ex-
penses or by reform OF the existing taxes to
render them more proiitabeg
The Minister is Of opinion that something is to be
done in b0tn these directions. There very pos
siby be saving OF two millions in 1859 and four
millions In 1870 That saving he had already taken
one hundred and fifty millions. Further eXpeca-
lions In this direction he cannot hold out. Then,
far as regards the increase of income from the ord
nary taxes, he promises reform OF both the Indirect
and direct taxes, and he hopes to lay before the
Reichsrath bill for this purpose at the autumn
session. Nothing further than the passage OF such
bill can be expected during the current year. He
then gives reasons why the execution of the contem
plated reform, so far relates To the direct taxes
will take up considerable time and that the fruits
thereof win not be rapidly visible. Therefore he
cludes that this is not reliable STAFF to lean on.
Thus he drives himself into corner. Before rush.
Ing into tie only available outlet rather into
OF the two remaining outlets-viz., partial repudia
ton more taXaton-he complains of the Hunga.
rians that they have repudated to the amount Of
$4,000 OOOn yearly, and this leads him to his first
medal measure, the principle of which is that the
western division OF the empire is in way bound to
assume the obligations Of the Hungarans to the State
creditor. have already argued against the justice
OF these reprOaches, which calculated TO wound
the pride and excite discriminating spirit among the
Hungarans. However, the argument OF DIR. Brestel
serves its turn as "a Justification OF the measure he
proposes TO resort to to cover this amount. He de-
clares that the State creditors themselves must bear
cent to the present income tax which is already adv
seven per cent SO that the income tax on the State
creditor will henceforth and forever amount to
seventeen per cent and Will cut down the predOmi-
nant rate OF interest from on to 4-lO per cent.
This portion OF the budget is only thinly disguised
reputation, 80 far as 1t goes for what Is the differ
ence between a forced summary reduction Of a rate
Of interest and special tax falling exclusively upon
The nature Of the operation is not even thinly dis
guised SO far regards that portion OF the national
Indebtedness which was raised Is TAX free" &C.
curity and which accordingly has hitherto been free
from the per cent income tax. This tax free,
portion Of the imperial debt win henceforth, II the
cent tax The best defence Of this proceeding IL not
to blame the Hungarians, but to aege the absolute
To s
OF the restored absOlutism Necessity knows no
law" II the debtors cannot pay they must COM
pound, and the creditors must submit to learn the
lesson that to entrust large sums OF money to gov
eminent which owed its power to the aid of foreign
bayOnets Is ever q dangerous speculation.
The government then proposes partial consolida-
ton approximate unihcatOn Of the imperial debt
cent income tax, which brings the interest down to
four and fourtenhs per cent the same as II the debt
All ose who
from 1t win be allowed to retain their present legal
position provided that they declare their intentions
The silent to be deemed cOnsenting parties. The
dssidents however, Will not be allowed to negotiate
their paper the Austrian bOurses. said the
solidation is only a partial one and the so-called
''unifcaton" only an approximate term, because
er 1 VIII BE- payable in silver and those Whose
IL w Ia D
Of the imperial debt including the lottery loans the
Crown domain mortgage l0ans the debt TO the
national bank, the noaiing debt, &C., which are
greatest change OF all instituted by this part Of the
budget is that the portion OF the debt included In 1t
@ s OF the 70
repay the principal will diminish the three years
deficit by about 2l,ooo,ooon. BY the saving OF
IL OoOn more viii be saved from the defct so that
before arriving at his penutmate resort the Finance
deficit of IS, 900 o0On still to be provided for.
The penultimste measure is TO sell the equity OF
s oi ne o nor Sa cro%n aG
before prOclamng his derter resort he has still TO
face 60 oOOo 600 deficit The Minister here becomes
Affecting, and expresses In his voice and In his words
the pain which he feels ut the sentence he s about 10
pronounce upon the taxpayers. bis fellow country
words came out; he is about TO propose a special
property tax one single levy PAYABLE by instruments
tent Of the levy he mentions that the government
have taken into consideration the question whether
the working classes ought not TO contribute directly
by means Of poll tax. The government negatived
the idea because ut the present moment, by the
high price of all the necessares Of life the working
classes far greater extent than has been the
at any time Of late years. and therefore 10 make
call upon this portion Of the population would not
After having exhibited the government benevolence
for the working classes, DR.. Breste summoned up
The new property tax is to be l-6 per cent for
land, $40 per cent for houses ana ~ per cent for
The Minister now explains why these proportions
az between land, house and personal property have
been hit upon. The government was Of opinion
that in proportion as the present tax 10 higher
should this extraordinary levy be put lower. Now,
1t Ii admitted all sides, that house property In
Austria u the most heavily taxed; we may even say
that n all other taxpayers were taxed In the same
proportion "a the house owners there would long
since have been denct at all; that therefore, the
house owner the most heavily taxed should be
most spared by the new tax, and that conversely
personal property, which has hitherto been relatively
the most lightly taxed, ought now to be the most
heavily affected by the new tax"
repeat that this levy is once made for three years
and that the payment Is spread over that PERIOD The
State creditors who have been specially cared for by
the seventeen per cent income tax are except
ed far their state securities are concerned from
the operation of this tax. Excepted also Is every
mans property rich and poor TO the extent OF 800
norns (ssO0.) The Finance Minister calculates that
this property tax will bring In exactly eoVO0O
orins and thus the three year aggregate deficit OF
150 OOo 900 norns IL af Length fully covered.