The Washington herald., 1908-01-19
DANGER IN WASTE
Foreign Press Fears ExtraY-
aganee Of Governments.
ENGLAND FACES GRAVE PERIL
Economists sound Note OF Warning
Against the Tremendous Expendi-
lures Being Made by that Power.
ProhiGacy OF Germany and Japan
Also SeriOus-QuestiOn OF Pensions.

London, Jan. 1s.-N9w that the financial
history Of 1907 has been made up. the
economic writer's in all serious journals
In Europe are expressing the gTavest
alarm over the threatened effects OF pub
lie and private extravaganza. They warn
the world first Of all, against the reck-
less policy Of the governments OF Great
Britain, Germany, and Japaa
Disaster. worse than any yet expert
enced. or apprehended. is indicated unless
q curtailment in national expenditure
comes speedily. Only one-third Of the
Prussian loan was subscribed. Germany
must reduce her naval programme or pay
higher rate OF interest The latter al
tentative would only be postponing the
day Of reckoning, Japan has been the
first to recognize the plain exigencies OF
the situation, and he's begun to re-
trench as the only method to revive her
disappearing credit.
Great Britain, on the other hand. Is
blindly increasing her expensive expert
ments in socialism. The Labor Party
Congress to-day issued fresh instructions
10 a submissive government, which dares
not disobey them. Chancellor Of the Ex-
cheqUer Asquith announced vaguely. the
other day. that he would introduce an
old-age pension scheme at the coming
session Of Parliament. adding that II
would require new taxation, and limiting
that the necessary funds must be raised
partly by local authorities and partly by
national taxation
Question OF Pensions.
The labor party sees signs Of eyadlng
the governments full pledges in a matter
that calls for universal pensions. So it
has passed resolutions demanding that the
governments scheme shall be nondiscTim-
inatory and noncontributary. and shall be
applicable to all who have reached the
age of sixty-five. The congress further
declared that the revenues for pensions
should be obtained, not by indirect taxa
ton. which imposes unreasonable burdens
upon classes whose income Is now made
quate, but by direct taxation upon in
comes. large part OF which Is social in
its origin and ought never to have been
appropriated for private use.
This. Of course, is a plain sOcialiStio
declaration. Nevertheless, both Camp
bell ll-Bannermanand ASquith stand pledged
TO universal pensions. which they now ad-
NIT would be impossible without a new
scheme Of taxation, which. by reason OF
the vast amount involved. must be COnfis-
catory in its nature. There is nothing sur
prising, in view of these circumstances,
that the government lost a seat IN Devon
shire yesterday. which had been over
whelmingly Liberal for many years past.
The Economist points out that what sgd
ney Smith said in late years to-day. ''Ths
world never saw so eXtTavagant a govern
ment as the government of England Not
only is economy not practice, but II IS
despised. Such a scene Of extravaganza
and corruption must paralyze industry
and mar the fortunes of the most spirited
people that ever existed
The Economist adds that the overloaded
taxpayer, who kicked cut the extrava-
gant Unionists in 1906, will soon kick
again.