The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-29
GERMAN ARMY COST
DEFENDED BY RIDDER
He Denies War Preparations
Have Impoverished
Nation.
POINTS TO GREAT BRITAIN
Says English Expenditures En-
coed Those From kaiser's
Treasury.
POINTS TO GREAT BRITAIN
Y, MER MAN RIDDER.

MY attention has been drawn to an
editorial Of one Of the wall Street papers.
called An Appeal to Mr. Ridder." which
an indignant American sent to me as a
sign OF the prejudice against Germany, re-
questing me TO answer to questions con-
tained In the clipping | lay no claims
20 such detailed analytical knowledge OF
taxation, finance and commerce az the
Wal street Journal. but a genuinely
surprised To find evidences OF such an
under supply OF readily accessible library
Information and of common sense ia the
'ditoral room OF the best known OF Wall
street allies
Question In the Kingdom of Prus-
STA, and in the German Empire. what
proportion ~ the taxation was expended
upon ornaments?
Answer-The expenses for ornaments
are substantially empire expenses. To
establish a proportion OF armament eX
pendtures 10 income from taxation would
not be practical as the empire has as
the only direct tax the IMPORTANCE tax.
But ] might take the PROPORTION OF ex-
penses for armament to the entire budget
and might establish the same proportion
for Great Britain and France. I then
get approximately the following figures;
Million Dollar.
o. Bulge Arm.mTen'
Great Britain ana ireland $50 $50
France ................. 900 go
Question 2-How far short did the
special tax upon capital fall below the
amount anticipated?
Answer.--The official result Of the
"Wehrsteuer' is not vet available Such
preliminary reports as have indicate no
shortage from the original Government
estimate OF s25o.oOO,o0o, II was neces-
sary to levy the special tax IN order to
pay for the readjustment Of German
defence force which had become necessary
through the shifting OF the balance OF
power that resulted from the Balkan war.
Question SLOW much was realized by
the supertax upon real estate
Answer.--If this question refers TO the
tax on unearned increment 7 can only
say that this form Of taxation until re-
Gently was exclusively within the dis
cretion OF the various municipalities and
States. The intention OF making this tax
an imperial one has been reversed nv the
recent law. which imposes tax to be
effective in 1917 on the entire increase
OF capital. to be determined in triennial
periods
Question It's II true that the super
tax on real estate was IN 80 per cent.
Of all cases uncollectible because the
holders Of real estate had no ready money
to pay IL?
Answer.--O' course as long as a tax
n still ineffective II cannot be found
uncollectible in so per cent. Of the cases
But II by any chance "supertaN' should
be meant to Indicate special tax" | can
assure the questioner that there was no
difficulty in collecting the special tax"
as may be readily understood by the IA I
that the tax is q graduated one, payable
in three annual instruments, and that a
levy of per cent. Is only reached when
the capital amounts to at least $3.50 600
sessed OF 20 much property could not
for three years pay about $500 special
tax is, Of course, ridiculous.
Question 6.--ls Il true that they were
unable to borrow on mortgage because
the tax had fooled the market with
real estate offerings and had. for the
same reason, frightened all buyers away? ?
Answer-In view Of what I have said
under - IL Is clear that no such things
occurred as are inferred in the last ques-
ton.
In the same editorial the ridiculous
statement vas made that tn. gboNe ques-
tons "vitally affect all those who are
unable TO cl,.eC; from their German cor
respondents who owe them money" The
reason for that inability" is the lack OF
communication. This same reason also
prevents Germany from collecting Its
credit balances In the United States.
In order to relieve still further the
anti-German prejudice Of my questioner !
am adding an approximate comparison
OF 1913 armament expenditure per head
OF population 10y three beilgerents.
Germany ..,,,........,...... 30
Great Britain and Ireland goo. 500
Franco