New-York tribune., 1905-01-16
IN THE GERMAN EMPIRE.
.Se0ere Financial Depression-More
W0rships-COlOnial Policy.
Berlin, January B.


The gray and dismal winter skies here. cheer
less, sunless, are symbolic in more ways than
one A pail Of unrest, dissatisfaction, gloomy
foreboding has spread the whole country.
The severe financial depression which set IN four
years ago is still here. For many years past
the number Of vagrants and toilers out OF work
has not been so great Deep mutterings Of dis
content, Of coming gigantic strikes are in the
air. In the whole Rhenish district, in the in
dustrial well IN the mining regions, the
new year VIII see big lookouts or strikes; and
with all that, the political aspects of the coun-
try are even more depressing. II is not alone the
political isolation of the empire which throws
looming shadows. The Reichstag, after a brief
session, adjourned for the holiday season, but
during the few weeks this body in activity
many alarming circumstances came TO the sur
face.
For one thing. the finances OF the empire have
not been in such discouraging shape since 1871
as they are to-day. For several years past
there has been a deficit in the imperial treas
ury. But this time this deficit is far larger
than ever and the absolute need not only Of an
other loan. but of new taxes. has become ap-
parent. In 1904 nearly every source Of impe-
rial revenue sensibly decreased, above all the
proceeds Of import duties, clearly showing a
diminished power OF consumption on the part OF
the nation. The new imperial finance secretary,
Baron Won Stengel, spoke plainly in the Reichs-
tag: New and large sources Of revenue are
needed for the empire" he said, "or else deficits
growing deficits, will become a regular feature
OF our finances" Some Of Bismarck's old reve-
nue. schemes especially a large increase in the
internal brewing and tobacco taxes, have been
dug up at this time, but Il is questioned whether
this Reichstag would lend itself to this Mean
while. this much is certain: Another large i'm
r5af 1oay, &c
crease in last years receipts, and the third
rnilnard Of marks IS thus considerably exceeded.
A gradual accumulation of debt for the en-
pire. aggregating more than S750,0O0.oOo. within
thirty-three years, all in a time of peace, and
mostly incurred for the army and navy is the
record Nevertheless. the government insists
this year. more than ever, on a further increase
OF both army and navy, and II is even now GER
tain that these plans Will be sanctioned by a
strong Reichstag majority. The lessons OF
this present Russo-Japanese War''-under this
shibboleth both these increases have been de-
Inanded and viii be acceded 10. It looks in
deed, as If the doubling Of the present navy
would become an established fact; and
this, Notwithstanding that It is only four
years ago that a naval increase plan" con-
templating a gradual growth OF the navy until
in 1915 II was 10 be thrice the size of the navy
Of 1901, adopted, after much discussion
and much resistance IN the imperial parliament
Nothing could show better than these contem-
plated enlargements Of both navy and army
that IN the opinion OF the government the gem
eral political situation has changed much for
the worse for Germany. The naval authorities
10 be sure, have convinced the Kaiser that II
one thing has been made plain by the marine
events IN the Far East. II is the need OF the
largest ana most powerful battleships 10 insure
victory the water.
The largest German batueships to-day are OF
only 1900 tons. and there are only a few of
these; those next in size are only from 10000 20
1900, this against the 1900 ton leviathans OF
the japanese and the 10000 TO $4,000 monsters
OF Great Britain and the United States. The
present naval plan. G.. the still in force
at this hour-provides for an additional number
of these 13O00-ton ships but the government
now IS urging the necessity Of rapidly
structing at least six larger vessels equal IN