New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-03-02
New York Rumors OF I'M
oending Trouble Shown
To Be Unfounded.
MARKET VICTIM
OF GERMAN RAID
v,;r Cause of Anxiety Is Finan-
cial and Taxation Programme
of the Government.
fsv cable 70 The Tribune ]

lions grounds. \ group OF specu-
- :, which the German element Is
'.,.,,snt has been trying by all possible
ANS 10 depreciate some OF the most
asss'v held French securities and cause
al round lowering OF prices and a
al weakening OF the French finan-
80 market. These foreign spectators,
-, their French allies. have even gone
-. length Of placarding the streets Of
paris with posters IN which violent state
-.,ts were INDUCED IN attacking the
r-sat French banks in a most insidious
manner.
The Bourse. nevertheless. has remained
Effected BY this Teutonic bear on
.,sygbt The market showed some i'm
rrovement in frmness last week, although
ne month-end declaration Of options and
,bs settlement brought but little fresh
ne 10 a market dependent on profess
.i,nal speculation for activity. French
savings end the French investing public
are holding resUlutely aloof from all
stock market transactions. and will
doubtless continue to do so until the
buigetary crisis is settled.
The New York rumors Of critical
credit position in Paris seem to have
gained in volume by distance Nearly all
optlons have been abandoned, and bear
sosculaiors were so eager 10 cover their
short sales that their activities caused q
slight rise I'm many departments. Buying
Nv the official "caisses" gave flip 10
French rentes. which became firm at 81
rsncs Is centimes for the account and a
cent more for cash.
Bank shares improved. the Banque de
Paris notably gaining several points.
Russian industrials. too, woke up under
covering operations, and better levels
we're noticed in many cases, especially
with regard to Petrol. Coppers. too. were
vel supported. Americans benehting by
the more cheerful tendency OF the mar
kst Suez Canal shares again recovered
the ground lost in consequence of the re-
duction In the toll rate. The growing re-
csipts Of the canal company are a sure
sign that there is little fear here in com
petent quarters that the competition of
the Panama Canal will be injurious TO the
interests Of the Suez company.
Caillaux Not Convincing.
As regards the financial situation of the
government events are moving fast NJ.
Csillaux made a brilliant speech IN the
Senate few days ago against the finan-
cial project Of VI. Almond chairman OF
tho Senatorial committee on fiscal reform,
but the brilliancy OF the rhetoric Of the
Finance Minister and the subtlety Of his
Arguments were as little convincing as
before
The committee decided that the new
laws proposed on the taxation OF capital
AID revenue were inquisitorial and ar
btrary in their spirit and mode of ap-
pleation
This committee represents the agricult-
rral and industrial life of France. The
whole country is rising I'm arms against
what is generally considered to be an
intolerable form OF imposition Unaniln-
ity has suddenly arisen among otherwise
totally discordant clements of the popula-
ton The big capitalist and the land
owner are in agreement with the sturdy
republican plebeian who has saved little
money and bought little property after
long years Of toll and does not wish to
be 1eeced of his hardearned savings bV
fiscal voracity or to have his private af-
fairs Investigated by an army of salaried
inqgisitors
u is becoming evident that France
vii have nothing 70 do with tax On
revenue. An income tax Is q word that
conjures here every kind of intolerance
and even the boldest shrink from using
~ La dine. or personal levies on earn
ings or crops. was dismissed forever to
oblivion during the great revolution. The
question OF a tax on capital and still
more on earned increment has become a
bugbesr and the butt Of general out
burst against al forms Of Income tax.
Object 10 Direct Taxation.
But apart from the violent fiscal dis
plte raging in France. wherein the only
supporters OF the government are the
haye-not Socialists and few radical
partlssns. tho subject of the French sys-
ZEN o. direct taxation needs reconsidera-
ton and reform. The amount it brings
irto the treasury is insufficient and the
system Of levying these taxes is both
Unequal and unjust. Certain classes are
sqreezed unjustiaably. whereas other
forms o. revenue practically escape.
Those engaged i'm trade and industry
have 70 pay heavy duty in order TO
prosecute their calling. named here a
p3tente." or trade license. and also the
Personal tax on movable property. Those
Engaged In other occupations pay only the
after tax. This personal tax is based on
10 positive data, but Is established merely
'n outward appearances Of Income, and
therefore, Is most unwise and unjust. For
Instance. q family blessed with ten
children inhabits bigger house and
spends more money than married
couple without any children. and yet
"ese may possess vastly greater reve-
.-ss and be saving large sums, which
ne biz family cannot do. and can never
'Asless be taxed much more lightly
'asn tho struggling father with nu-
esfous offspring. because the rich and
~Aaless couple seem 10 spend less
mus certain notifications are wanted
y tne application Of direct taxation. II
lance VIII not hear Of taxing revenue,
vat - then the source 20 hand for re-
ssnAAlng an exhausted treasury and
s'Dng out 4 big deficit? Indirect taxa
~'o "a the Immediate reply. coupled with
= Dis state loan. During and after tho
o'3in African war the income tax was
~'.'eassd In Great Britain, but this was
-N SUFFICIENT 10 oil the hugo gulf IN the
,~H'Aal finances caused by that war
ne Chancellor Of the Bzchequer. ~ that
me Sir NlohaeI Ircka.Heach irornedl-