The sun., 1908-01-19
FINANCIAL ALARM IN EUROPE
PTBLIC AND PRIVATE EXTRAVA-
GANCE THREATEN CREDIT.
POOiey OG Great Britain, Germany and
Japan PrOnOuncesi Reckless Only
Japan Retrenchlng Herman Loan Fails
-EnsIlsh Socialists VIVA Demands.

FotafN ~ Narcwt brtgaims Ascfm8Ay AHhu
Japan PrOnOunceh Reckless Only
Japan Retrenchlng German Loan FaIIs
-EnSIlsh Socialists VIVA Demands.
Special Cabis DespdtcA 10 THR SUN
LONDON. Jan. tS.--NOw that the financial
history of isU7 has been made up the eco
nOmio writer's in all serious journals in
Europe are expressing the gravest alarm
over the threatened effects OF public and
private extravaganoe. They warn the
world first Of all against the reckless
policy Of the Governments Of Great Britain.
Gerhany and Japan.
Disaster wOrse than any yet experienced
or apprehended is indicated unless a volte
face in national expenditure comes speed
lily. Only One-third Of the Prissian loan
was subscribed. Germany must reduce
her naval programme or pay q higher rate
OF interest. The latter alternative would
only BE pOstpohing the day Of reckoning.
Japan has been the first to recognize the
plain exigencies OF the situation and has
begun to retrench as the only method to
revive her disappearing credit Great
Pritain. on the other hand. is blindly in
creasing her expensive experimental in so
cialism. The labor Party Congress issued
fresh instructions to-day TO a submissive
Government which dares not disobey.
Chancellor Of the Exchequer Asquith an
nounced vaguely the other day that he
would Introduce an old age pension scheme
at the coming session Of Parliament. adding
that il would require new taxation and hint
ing that the necessary funds must be raised
partly by local authorities and partly by
national taxation.
Tho V.ahnV nj upa nf aUafAinR
the Governments full pledges in a mat'e-
that calls for universal pensions. So y
has passed resolutions demanding that
the Governments scheme shall be nor
discriminatory and non-contributory and
shall be applicable to all who have reachsa
the age Of 65 years The congress further
declared that the revenues for pensions
should be obtained not by indirect taVs-
ton which imposes unreasonable hurdArs
upon classes whose income is now iuad"-
quate but by direct taxation upon inooC'es
a large part Of which is social in ita origin
and ought never to have been Appropriated
for private use.
This, of course, is a plain SOGialistic
declaration Nevertheless both Campbell
Bannerman and Asquith stand pledged
to universal pensions, which they now
admit would be impossible without new
scheme Of taxation. which by reason Of the
vast amount involved must be cnnfisca-
tory in it's nature. There is nothing sur
prising under these circumstances in the
fact that the Government lost a seat in
DevOnshire yesterday which had bsen
overwhelmingly Liberal for many years
past.
The Economist points out that VII at
Sydney Smith said eighty years ago is
true to-day: The world never saw 40 ex-
travagRnt Government as the Government
Of England. Not only is economy not
practised bat it is despised. Such a scene
Of extravaganza and corruption must
paralyze industry and mar the fortunes
Of the most spirited people that ever eX-
isted.' The EconOmiSt adds that the over
loaded taxpayers who kicked out the
extravagant Cnionists in 1905 will soon
kick again. ..... .
Discussing the effect OF private eXtrava-
gance on the prices Of commodities, the
same journal gives an important cOm-
pilation. It's record II made by a series
Of index figures, the average Of 1903 being
2.37l. while that Of 1907 was 2. 1872. an in
crease Of nearly ) per cent. But the it,
crease Of 1907 over 1897. which was an aver
age prosperous year. was 80 per cent. The
highest range, by months. was in May
last. when 2.BOi was touched. Then there
was a steady decline to 2,3I0 in December
Economy certainly has begun, hut ten
years ago the index figure was only |, sol.