The sun. [volume] (New York [N.Y.]) 1833-1916, 1900-05-19
ECONOMIC CONDITION or GERMANY
How She Manages to Raise Her Enormous
ReNenuc Without RuTdepsOme IaxatiOn.

A most complete and lucid report on the
economic condition of the German Empire has
Just been made by Mr.. Harrs-Gastrell. the
Commercial Attache 10 the British Embassy at
Berlin. The figures which he handle appear at
first sight to be rather startling. but on close
examination. so far from being alarming, they
place the financial condition of the Empire
in a very satisfactory Hight. and show
how it is that it bears what appear to be
enormous burdens with relative ease. TAX
ing the Imperial Budget first, 1t Is shown
that the Army and Navy absorb full SO per
cent. of the imperial revenue. which is $780,
$50, 900, as against slOi ,47j, 900 in 1872. The cost
Of the Army then was $40. 695, 900; 1t is now
sl35, 5000 o making. with the cost of the Navy
added, the military expenses OF the German
Empire for the current year upward Of $685.
Ooo, 1000. When the revenues Of the various
States, each of which has its separate budget.
are added to the imperial revenue. the total
attalns the prodigious figure of almost sl.l?5,-
900, 900, Of this sum the revenue Of the Kingdom
OF Prussia amounts TO $751; $4,000.
The Empire itself, owing to the indemnity re-
ceived from France after the war OF 1901.
ceived from France It paid or the debt of the
Nv ANOi VI oi''' a. INV NJ WV ~
owed only 1000, 900. Now the debt has run up
to s575, 900. 900, with an annual interest charge
Of SIS, 7s5, 900. Each year sees an augmentation,
and the naval programme alone will increase
the debt by $3.50, O.Ooo. which is TO be bor-
rowed. All tho imperial debt may be said to
have been contracted for military purposes,
$3.50, 1925, 900 being for the Army, 500, 600 600 for
the Navy. s32, 49,, 900 for strategic railways.
$40, 225, 600 for the Kaiser wilhelm Canal.
The revenue of the Kingdom Of Prussia has
risen from sl68. $50, 900 in 1872 To 1851 $1,000,
and the debt has grown 10 sl,di7 900 900, being
an Increase of 81. Ell cent, since 1872 The in
terest charge Is t1T 6s5, 600.
This is the dark side of the account, aud for a
country like Germany it seems dark enough, 1t
may be asked how does the country bear such
burdens? The answer is, partly because its in
dustrial and economic development has been
unprecedented. aud because a large portion AZ
the totals Just given represent neither pub
lie burdens In the way of taxation nor public
debt a. generally understood The greater part
of the Prussian debt has been incurred in the
construction or purchase OF the railways. and
SO remarkable has been the expansion OF
the railway system and business that tho gross
receipts Of the S~tate-Owned railways have
risen from $3.50. 5t0.0 900 in 1872 10 an estimated
s3iO. cocoon in he present year. The money
borrowed by the Pru'sian Government has
been invested in public undertakings which are
proving more profitable each year with the ex-
pansion of German trade. The total debt
charge Is under $50, OOO. 600 and the estimated
net receipts for this year are si35. 1000. II is
tllS lIil tColulS loi. ltt lew. Complaints npHru
Of burdensome taxation In Prussia or any of
the other States embraced In the Empire.
Notwithstanding the heavy military expendi-
ture In. Germany. Russia leads Europe In the
expenditure on public education. Its budget
this year for eleme .tary education exceeds
$40, OOo, 600. against less than $1,000. 600 in 1871,
for higher schools it has risen from $4,000 o 10
o., 0sj,o zoe, and for universities from 1855, 900 to
g., 555, 900. In 1871 only SIS, 900 was spent on in
dustrial school and the estimate now il 81. 4O5,-
900, In other respects the Prussian State stands
nIt rs "A model al ITDVTpSG Inc tntQl Hn'At .f
Germany, imperia! and State. Is 81. 845, OOO. N0,
and the gross revenue about 1922, OGO. 900. Add
ing in the imperial revenue proper there is n
gross income of about 81. 1875, 900, 400. and of this
no less than s413. $4,000 j. represented by the
gross receipts Of all the State railways in Ger
NAM so that for all purposes Of the Empire,
and IN its position rs an degeneration of indie
pendent States. Germany has only 10 raise
about sG5l 5000 D by taxation.