Evening star., 1909-06-13
GERMANY'S FINANCIAL TROUBLES

chancellor neglected nothing to obtain a
majority and he failed. He then has no
other choice except to resign or dissolve
eral days of dissolution But what
good can that do? Prince Won Buelow
the chamber short time ago
against the center and socialists. To dis
solve the chamber now against the con-
servatives may be a hazardous game
which may risk playing into the hands
of the socialists on the one side and the
Catholics on the other After the elec-
tions the situation would be worse than
before. As for the chancelor's resigna-
ton. the chancellor desires nothing more
than that. There are four solutions:
Rupture with the conservatives: recon-
ciiation with the center; dissolution or
resignation.
Meanwhile Prince Won Buelow desires.
according to the Gazette de Cologne, that
the reichstag should vote In the first
place the 400 millions of indirect taxes in
order to force upon the conservatives
the necessity Of voting the law of in
heritances. or to assume the responsible
ity of a check to the financial reforms.
But the conservatives seek to battle this
project by causing the bill for direct
taxes to be examined first. The project
which the conservatives now propose to
submit to the commission consists: First,
of a tax upon furniture fixed at I, 2 and
per 1000 according to the category of
values; second, a tax upon purchases of
values fixed at 30 per Loo for values
quoted at the bourse, and per 10OO for
values nonquoted: third a tax upon ex-
change and the Increase Of furniture
values. The conservatives estimate that
these three taxes combined will procure
as much as the tax upon inheritances in
direct line.
The Norddeutsche Allgemeine Zeitung
of Berlin remarks:
The situation is extremely serious
The financial reforms which the German
people have SO earnestly called for have
made no progress during these last six
months in which parliament has dis
cussed them. These reforms ought at
once to be accomplished the people de-
mard 1T. This matter has become a ques-
ton of national honor If the ma Jority
of the reichstag shirk this task the conse-
quences cannot be calculated
In the Revue Poltique ct Parlemen-
tion of Financial Re-
Financial form under the head of
Germany" He says, in
0eioiih' part:
The question of financial reform has
loomed since a long time upon the hori-
zon of politics In Germany, especially
since January 1, 1909. Financial reform
means that the empire finds itself in a
most precarious financial fix, and is In
absolute want of a supplement of per-
manent receipts amounting TO 500 mill
lions a year without reference to the
floating debt. which has augmented In
enormous proportions, and this, too.
when the empire and Prussia are forced
to contract d new loan amounting to $40
million marks. This crisis comes from the
vast sums expended for armaments on
land and sea. The author takes no note of
the losses contracted in industrial CEN
terS and the advances made to manufac-
turers who have manufactured at loss
In order to compete with and outdo the
foreign rival and thus render made In
Germany 4 menace TO the alien manu-
facturer, and especially to the Britisher.
The principal point has been since the
commencement how to cause the classes
affected to support these new charges
upon them? The liberals declared that
their project consisted in taxing acquired
wealth. But the conservatives and the
government are in accord that the mass
of the people are already overwhelmed by
customs taxes and taxes upon living
stuffs. and the weight of new taxes upon
such articles would be insupportable.
But how impose tax upon acquired
wealth? The simple method was that
prepared by the liberals, namely, by a
direct empire tax upon acquired wealth.
The minister of finances and the confed-
Grated states opposed it because they saw
in it an nadmissible prohibition of the
rights of sovereignty of the states, which
would not deprive themselves, for the
profit of the empire. of a good source of
revenues for themselves. the dogma, 1t
being understood, practiced until now
being indirect taxes for the empire, direct
taxes for the states. Under these cendi-
tions the government submitted prof.
ect, tax which was indirect theoretically
but direct practically. "a tax on sue
cessons' or inheritances. 1t was per-
fectly equitable in fact because 1t taxed
acquired wealth at moment when 1t
passed to the hands of inheritors who had
contributed nothing to its creation.
The tax provoked the opposition of the
conservatives, or more exactly of the
agrarians. They declared
Agrarians it unacceptable because it
was of a socialistic char
OPposea' acter and consequently of
a nature to destroy the sentiment of
family. These reasons were simple pre-
texts to conceal the Unsuitable egotism of
the agrarians. Prof. Delbruck signaled
another opposition, the large landed pro-
prietors, who feared that If the law of tax
would discover the numerous conceal
ments which they commit.
The conservative opposition was sus-
tained by the center. 1t seized the occa-
sion to provoke the dislocation of the
bloc and create political difficulties for
Prince Won Buelow and perhaps over
throw him. The tax upon inheritances
therefore. was rejected by the commits
sion. The clerical-conservative coalition
proposed compromise entitled "Herold-
Camp compromise 1t substituted a tax
on acquired wealth which should be
raised by each of the confederated states
but which should be turned over by them
to the empire according to its wants TO
the amount Of maximum of 1OOUU.OOO
marks. The liberals approved this project
without reserve. The imperial government
declared its adhesion. but. notWithstand-
Ing that. the project foundered by reason
of the violent opposition which 1t encoun-
tered from the confederated states and
the public. The former condemned 1t as
impra cticable and as tending to plunge
the finances of the states into inextrt-
cable confusion and bankruptcy. The lat
ter manifested it's violent Indignation be-
cause it assumed that 1t would replace the
tax upon inheritances.
The conservatives submitted a project
to establish a tax upon high-priced furni-
ture. which, they held. would bring in
100000 900 marks of taxes upon acquired
wealth. The conservatives are opposed to
any taxation of realty.
Bluff is large factor in the present sit
uation, both in Germany and England.
Germany bluffs to gain time to arrange
her financial troubles, which preclude any
for time in which to complete her organ
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