The St. Louis Republic., 1902-11-23
Has Grown From S14,750,000 This
Year to $37, 500, 600, Estimat-
ed for 1908.
NATIONS FINANCIAL CRISIS.
Secretary of the Treasury Suggests
an Imperial Tax on Beer and
Tobacco us Desperate Means
of Relief.

Berlin. Nov 22-In the Reichstag yester-
day, the Secretary of the Treasury, Baron
Won Thtelmann, announced that the deficit
in the imperial budget for 1908 was esti-
mated to be sS7.500O0o The budget. he
added. would be submitted in two or three
weeks. The deficit for 1902 was sl4,75O,coe.
1t would not do, the Secretary said. to be
always providing for deficits by loans, nor
could the contributions of the federated
States be increased Nevertheless. it was
probable that the States would ultimately
have to bear the deficit What ought TO be
done was to increase the imperial revenues
SO as to balance the expenditures.
Looking around for suitable objects for in
creased taxation, he saw beer and tobacco,
and he begged the members Of the House
TO keep these in view while thinking how
TO balance the budget. Baron Won ThieiUlan
also intimated that the Government in
tended. as soon as practicable, to propose
pensions for widows and orphans. He was
quite unable to say how much such PEN
sions would be an extension of the State
insurance laws and Treasury burdens. but
the suggestion was made that s2o per person
yearly vas insufficient. Assuming that $50
was enough for the pensions of widows and
orphans. II would take S40,000.000.
1t was impossible to say how much the
Government tariff bill would yield, but a
mere mechanical estimate. based on the
present imports, showed the customs re-
ceipts would increase $50, C01. The sup
porters Of the commissions tariff schedules
thought a total Of Sl25,0Jo0oc would be de-
rived Secretary Won Th!elnann mentioned
considerations that reduced the estimate
largely.
BUSINESS DEPRESSION.
The Secretary's hint that the Government
was meditating pensions for widows and
orphans caused G stir among the members,
because II is one OF the things the Social
lists advocate.
The deficit is the result of the financial
depression which still affects almost every
form of business. limiting the purchasing
power of every class. While there have
been no large failures recently, various
symptoms OF continued hard times appear.
AT the krupp works 5000 laborers have
had their time reduced two hours daily and
some departments are shutting down each
week. The iron syndicates are reorganiz-
ing and prices recently were again cut.
The number of unemployed persons, ac-
cording to the municipal census. is barely
fewer than year ago.
Secretaries of finance before this have
thought of levyfng fresh contributions on
beer and tobacco. which now have excep-
tionally low duties, the tobacco import du-
ties being one-third of those Of the United
States. The beer duties are also below
those of other countries. The Empire col
lects no beer tax. that heretofore being left
TO the several States. whose rates vary.
The principal reason which has deferred
the laying of an imperial tax on beer was
that it would disturb the relations with
Bavaria, which relies 81 great deal on its
beer tax. which is still enough TO permit
Bavaria to sell largely to outside States.
Bavaria has always pointed out that IL the
Empire taxed beer It would injure Bavaria
more than the other States. that 1t would
not be fair play, and that it would impair
Bavaria's regard for the imperial tie.
The additions of beer and tobacco taxes
are certain to be highly unpopular.
Chancellor Won Buelow is holding frequent
conferences with Representatives of the rep
resentative parties. seeking to break the op-
position to the Governments tariff sched-
ules, but so far without decisive results.
The majority parties have appointed COM
to keep in touch with one another.
so the Chancellor must deal with the ma
jority as compact whole and not with
individuals or groups.