The Tabor independent. [volume] (Tabor, S.D.) 1913-19??, 1914-12-17
SWISS REPUBLICAN
FL0URISHING STATE
Mountain Kingdom Il Refuge
for Oppressed Foreigners
Germans Invest Much.
From the london T1mes.

from inc IOnuOu Ilfuoo.
Just as Switzerland used formerly TO
be refuge for foreign exiles and for
the oppressed and prosecuted of all
lands, so Is she now tending to become
q refuge for foreign capital especially
for foreign capital which Is oppressed
and prosecuted by a war tax heavier
than 1t wishes to pay This tendency
has OF late been accumulated, hot only
by the introduction Of the German war
tax, but also by the threat OF the In
PRODUCTION OF an income tax into
France and by the Increased income
tax imposed in England, al
At the time OF the introduction OF the
war tax into Germany Swiss bankers
sent out circulars to large German
banks and to important manufacturing
firms calling their attention to the ad-
vantages OF Investing money In Switz-
erland. They also advertised in the
leading German newspapers pointing
out the security OF capital In Swiss
banks and its freedom from govern
ment molestation OF other Interior
ence. Whether as a result of their en-
forts or not, q great deal or German
capital has undoubtedly found it's way
during the last year to Switzerland, 80
much so that the matter recently came
up for discussion before a COMMITTEES
Of the Prussian Herrenhaus
r Evadina German War Tax.
II was ELECTED in evidence, for in
stance, that one important German nrm
in the Rhine provinces had established
an estate bank In Switzerland with
capital Of a750,000, thus depriving the
government and municipalities or q
considerable amount OF taxation. AL
together 10 different financial under
talSings were said to have been recently
founded in Switzerland with German
capital, and all OF them In the endeavor
to evade the war tax. Naturally the
Prussian tax commissioners are at
tempting to devise some means either
OF preventing the exit OF German cap
ital to SwitZerland-which would
scarcely be possible-or OF taxing IL
after It has been transferred thither.
A Recent Financial Development
The Importance Of Switzerland's po-
sition in international European
finance Is of recent growth. Its origin
may be traced back TO the year. 1897,
when enlightened opinion succeeded In
lgetting the better OF the cantonal jeal-
ousles which had so long acted az q
drag on the country's financial stand
ing. In that year law was passed
depriving the cantons OF the right 70
issue notes and comforting this right
upon one bank, the national bank, Gre
ated in 1907. Previously 30 Swiss banks
had been entitled to issue notes ana
foreign investors had no knowledge OK
and no confidence in notes issued by
all these petty little local banking in
situations, whose creT't moreover, was
not always altogether sound. Since
Swiss credit has been established part
ly on the national bank, with the sole
right of issuing notes, and partly on
the cantonal banks with the guaran-
tee OF the canton whose name they
bear behind then), 1t no longer depends
upon the good will OF the Bank or
ErV-oYA nf on hon
policy OF the Swiss National bank 10 30
directed as to steer a middle course be-
tween France and Germany, thus win
ming the confidence Of both countries.
Earlier Transfers Of Capital. r,
The idea that Switzerland ought 70
cndeavor to invest capital abroad In
order not to allow her home money
market to be glutted Is far from new.
AS long ago as 1755 the bank Of Leu d
Co., still well known Swiss bank, was
established for the purpose of finding
investments abroad for Swiss capital
at q higher rate OF interest than that
obtained IN Switzerland. About 10
years laier, when Switzerland's neu-
trality had been guaranteed, capital be-
the republic. seeking q safe investment
there. At first 1t was chiefly French
capital which turned to Switzerland.
for French hnanciers took into consid-
Grafton the fact that only a small pro-
portion OF Swiss government and can
tonal loans could properly be classed
as unproductively expended (on the
army, for instance). Thus II came
about that large amount Of French
capital was sunk In Swiss railways-in
federal railway 81 per cent stock and
in per. cent Jura-Simplcn stock for
example. o.. -
Swiss Water Power. ,.".
AS time went on German capital be-
gan to compete for investment In Swift
zerland and to get q foothold there.
Thus the Allegemeine Elektrizitatsge-
sellschaft and other great German
firms acquired a position in the coun-
try. and the fact that number Of Swiss
manufacturers were so anxious for
rapid development Of electric power In
Switzerland, and that the country had
no coal supply Of her own worth mem
tioning, greatly facilitated matters for
German electrical supply companies.
switzerland, moreover. was even then
keenly conscious OF the difficulty Of
procuring sufficient supply of coal
whenever coal miners strike should
occur In Belgium, Germany, or other
coal producing lands. Now she In even
more alive to the danger of allowing
any foreisn power, be II Germany or
France, TO exploit her water power.
and the Swiss Federal railways are
consequently acquiring everywhere tina
right 10 utilize the water power for the
eventual Identification Of their system.
and OF course Of eeding to Swiss manu-