New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-12-21
GERMANY FACES
COLOSSAL TAXES,
SAYS HELFFERICK
War Indemnity Cannot
Wipe Them Out-New
Tmposts Planned.
BUDGET QUESTION
SPLITS SOCIALISTS
Break Imminent - "VorwaertS'
Insists Government Must
Now Take Stock.

Berlin. Dec. 2O.-Dr, Karl Helfferich,
secretary Of the Imperial Treasury
announced in the Reichstag to-day that
the next budget could not be balanced
without additional income and that
proposals for the new taxation were
being drafted for submission TO the
Eeichstag
The secretar declared that no mat
ter how large q war indemnity was re-
ceived the war would impose colossal
burden Of taxation on the Germans,
and they must therefore expect greatly
increased taxation after the war.
The differences Of opinion prevailing
i'm the German Socialist party before
the war have now reached an acute
stage. saws the Overseas News Agency.
Il is possible that in the next vote in
the Ieichstag the party viii split,
While before the war the extremists
seemed TO have o majority, IL has now
become evident that the trades union
lists, together with the right wing OF
the party, are decidedly IN the ma
iority.
This majority now publishes an ap-
peal TO the minority saying that the
German Socialist party will be obliged
20 vote for the war budget In order
70 avoid the impression that Germany
IL exhausted. which would prolong the
war unnecessarily. The majority,
whose leader is DR.. Philip Scheide-
mann, therefore urges the minority,
whose head is Herr Kaltsky, not to
cause a party split. The appeal says
that discussion always is free, but that
unity Of action is necessary.
ffvo h.
msny's financial condition which DR..
Kari Hslfferich, Secretary Of the Treas
ury, made before the Reichstag, the
Socialist newspaper "Vorwserts" as
serts that the time has come for the
German government and the Reichstag
10 indicate in what way the money
necessary for payment Of interest on
the nations gigantic war debts and
20 provide for their redemption is to
be raised. 1t says;
with the new war credit OF S2,oOO,-
600 600 ths German war debt reaches
S10.000,000 900, which, according TO Or
Helfferioh. should last until the end
Of March. Interest on Sl0.000,000,000
amounts to S500000,000 annually, and
for redemDtion, which is necessary in
order TO maintain the credit of the
empire. another Sl25,000,000 is needed.
The "Vorwaerts" considers IL essen
tisl thar the empires income be more
than doubled 10 meet these obligations
and the current expenses. Before the
war. Il says. the financial state Of Ger
many was a source OF anxiety TO the
government. In 1909 taxation was in
creased by s12500O 600. but the budget
did not balance In 1918 the govern
ment adopted the extraordinary meas
ure Of taxing wealth and levying a
non-recurrent contribution for anna
ment in order TO cover the deficit
Maintenance Of the existing financial
system. the "Vorwserts" continues, Is
impossible so far as taxation Of i'm
ports is concerned. Provisions, raw
materials and many other articles may
be expected 10 rise In price after the
war. and II the present tariff we're con
tinued 10 would lead TO an artificial IN
crease Of prices for Germany, which
would undermine the capability Of Ger.
man industry 10 compete in the world
market
Therefore, the interests Of consum-
ars and producers" the "Vorwaerts'
concludes, demand abolition Of these
import taxes after the war, which
would reduce Germany's income con-
slderably. and therefore the time has
come for the government TO declare
what course it is steering