The morning call., 1890-12-02
TAXATION IN FRANCE.

To the American observer, the financial
situation of some foreign countries is posi-
lively appalling. NJ. Pelleton, who would
be called in this country Chairman of the
Committee on Ways and Means, has just
filed his budget with the French Chamber,
and reports the aggregate debt Of the French
Republic as 81, 800 Sl3, 59i francs. say $685.,
C00,c00. We wonder how a people can stag
ger under such a load of Indebtedness.
When the first Napoleon was oveIthrown
he left France with a debt of some S250, Geo.
coo, the product of twenty years of warfare.
This was quadrupled under The peaceful but
corrupt regime Of Louis XVIII, Charles y
and Louis Philippe. Tho republic of 1915
found an existing Indebtedness of about
81, 000,0o0,000 This was more than doubled
under Napoleon Ill. The present republic
had TO deal with national debt of about
So, SOC, coo. 1t pursued precisely the op-
pcsite policy to the one which we have
followed in this country; instead Of reduc-
ing the debt, it has enormously increased it,
Three years ago, its total was reckoned at
$500, 0o0,CC0 and now NJ. Pelleion gives it
as Sc, 100000, more than three times the
debt of the United States.
To pay the interest On this debt, and to
defray the cost of large army and navy
maintained with view TO a future war with
Germany, the French are taxed at the rate
of $50 per head per year for the entire popu-
lati0n, and all sorts of annoying lmposts,
such as taxes on doors and windows, and
SALT and other necessaries of life, are main
tanned. Our taxation in this country for Fed
eral purposes is about St per head per an
mum. But our contribution for the support
of the Federal Government and for the pay
ment OF interest on the national debt leaves
an annual surplus of about S100,000000
while the annual deficit of French budgets
does not average much less than that sum.
The $50 which every French man, woman
and child has to contribute yearly for the
support of the General Government does not
cover the communal taxes. Paris alone has
debt of S50o,C0oG0o, and interest on this
sum must be provided by local taxation.
Parisans are likewise called upon to fur
DiSh large annual sum for the support of
government Of the municipality. 1t is grand
10 be a citizen Of the finest city in tie world,
but the grandeur comes high.
Judging IRON our point of view, in the
light Of our experience, we should be in
clined TO think that the credit Of a country
so burdened WIKI debt as France, and in
which The rate of taxation was so heavy,
could not be very coed. There is a limit
beyond which the capacity Of a people TO
pay taxes cannot be pushed. Bat it seems
that, in the opinion OF Europe, that limit
has not been reached in France. The
revenue is collected it less cost than the
United States Government has to pay, and
the republic can borrow all the money it
wants III or Z per cent. The French are
the noSt thrifty and in money matters the
most careful people in the world, but they
W i'll take their savings out of the old stock
ing to lend it 10 the Government Of the day
whatever it may beat per cent.
The growth of the French debt and Of the
communal debts has had this effect: from
being the cheapest country in the world to
live in it has become one oil the dearest.
Paris is now probably the most expensive
metropolis in Europe. Forty years ago
studen Is came up from the country to fol-
low course of law or medicine at Paris,
and lived or SEQ or 500 francs. say S120 or
SAC, year. Now, if they cannot command
an income OF at least twice that amount
they must stint their food and Wear old
| clothes. A family in Paris used to live
comfortably on S1CG0 year; now they are
| pinehed if they have only S2G0o. Taxation
| does tell in the end.