Albuquerque morning journal., 1916-12-13

obtained
In attempting TO compare Eng
land achievement n taxation Sitl
German condition Che material dif
| ference IN the system muet be taken
INTO account The principe followed
bY Germany has been mat @ut eK
pendltures should be covered inst
not by taxes, but BY loans. We have
followed this course with the result
that A., 900 900 marks Of the war debt
has already been definitely trans
ferred TO the German national wealth
F,Dglands Short Time Loans.
England, on the contrary has
been forced to help herself mainly by
short term loans. a way must bC
found for funding this floating debt
"a difficult problem, the solution Of
which presupposes that the future
lenders at home and particularly
abroad, shall give proof Of security
for the payment OF interest and capt.
tai Englund was, therefore, com
PEELED TO put on the tax screws mme-
diatoly and with the tightost power
possible COmmendable successes
were attained. but they We're far from
ADEQUATE 70 form definite basis for
bringing into order Eneland's war
finances.
"That the German productive forces
and German capital power are able TO
create and bear the necessary out
Law for interest service on national
war loans, nobody familiar with Ger
man capacity for achievement can for
moment doubt We can however
point to considerable achievement
already In taxation during the war.
Besides the new permanent Imperial
taxes. we have adopted tax on war
profits. the results of which are yet
10 be secn. Unlike England, we have
not included the expected return
therefrom IN the budget Further
more, various federal states have ma
terinlly increased their taxes. These,
which are principally for war relief.
are naturally not included, as in Eng
land. in one uniform national budget
because Germany, like the United
stntes. In federated state. Such ex-
pendilures, however. can easily bo
found IN the Prussian budget. for ex-
ample"
Not Paper Currency Alone.
'lt has been intimated by the
British financial secretary that your
loans are largely paper remarked
the correspondent
what Mr. Wood says about tho
character Of the German war loans"
replied Count Won Roedern, lis in.
comprehensive, coming from the
mouth Of an expert How can any
one conceive that war loans can arise
and continue to arise from newly
emitted paper money when there are
only 1000. 100000 marks in bank
notes against tIOO0,O00,000 In loansY
The latter represent national wealth
placed at the disposal Of the empire
nothing else
"The increased note circulation dur
Ing the past Is due to an Increased de-
mented turnover In war industries,
high wages In all branches OF industry
high wages In all branches of inustry
and FAR wider classes of population
thun formerly. dhtnk, for example,
that large proportion OF Germanys
women now are wage earners) and
not the smallest factor Is the increased
circulation Of imperial bank notes IN
belgium and the occupied districts OF
Russia
m the theory be correct that from
a few billions OF bank notes, loans
bearing a fixed rate of interest can
be credited TO any desired extent, the
policy in France should be particu-
larly successful, whore 100000 GOO
francs in bank notes or double ours,
have been In circulation at the same
time. But am told that my colleague
Ribot. rs not entirely satisfied with
the results of previous loans, which
brought only about 20,0O0,O00 francs
in new funds. or not even half of our
subscription
'As to the maintenance Of gold pay
mcnts IN England. YOU probably are
familiar with tho article In the Lon
don statist, inumatng that a sus-
pension of specie payment may be
necessary next spring
with reference 10 an unfavorable
fate Of German exchange, Count Rood
cru said.
Depreciation Abroad Regretted.
The depreciation of the German
mark abroad is certainly regrettahlc,
but also unavoidable, and a passing
the fact that we are excluded from
the trade Of the world and from op-
portunitios 20 export while we con
tiuue TO have a certain, if very limited,
import This situation viii change
with the conclusion Of peace.
Just In this fact that we are
forced to depond upon ourselves
economically and financially, lies our
strength We are able 20 regard the
depreciation of exchange with faf
greater equanimity than England,
which is running steadily deeper into
debt abroad. Exchange rates have
quite a different Importance for Eng
land, and the efforts of the British
financial talent are naturally and
chiefly devoted to maintaining the
sterling rate as long as possible,
"What ! have said viii answer two
questions you recently submitted To
me You also asked TO what ! uttrb-
utcd the great success of our war
loans
~ only wish to reltcrate that an
E.rI..-n. L..- ~. .l..r.tnl I'm ~. 49,