New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1916-09-18

lance tax. property taxi in the empire
and in the single states brought about
1926, 100000 in Germany and S373,OOO.-
600 England. Germany paid $3.50 per
head, England about So per head. II
German taxation was merely raised TO
the level Of English taxation. direct
taxes would bring 1886, 100000 instead
of s4OO,O00,o0O and indirect taxes
about 1886 900 instead Of s325,OOO,-
600. If English rates of taxation were
applied to Germany they would bring
an additional s345,Ooo, 900. They
equal the interest on s7,00o,OOO.OOo.
seven-eighths OF the permanent war
debt SO far contracted by Germany. In
other words. the taxable reserves IN
Germany ere far greater than those OF
Great Britain.
Commercial War to Come.
English statesmen realized long ago
that Germany cannot be broken eco
nomically or financially by the results
of the war Whilst they are writing
hard to convince the reutrals that Ger
many is near bankruptcy, they provide
with great energy for a commercial
war on Germany after peace Is made.
If there were the slightest chance Of
Ccrmanys financial exhaustion during
he war the economic proposals of the
Allies made in Paris would be super
Auous. They have been made, as Mr..
Asquith acknowledged quite openly, be-
cause Germany's economic situation
after the war will be strong and sound
and because England's economic situa-
ton in the world has received severe
blow.
BEFORE the wnr London was the clear
ing house of the world, partly on ac-
count of Engllnd's trading facilities
partly because England was the credl-
tor of all nations. especially the new
ones. They sent their goods to Eng
land, not only because they were likely
to be consumed there, but because they
used them for paying interest to their
British creditors The draft on London
ruled the world. Moreover. London was
the great investment market, where the
capital from all the world converged,
TO be distributed to all the countries
waiting for development. This fnan-
cial supremacy has gone. After the
war England will not be the great
creditor country she was. The longer
the war goes on the greater will be
the shrinkage IN her foreign invest
ments If she goes on fighting until!
she has released Belgium and Northern
France there is fair chance that they
will disappear completely. In future
there will not be the same necessity
of sending goods to London; there will
not be the same amount of remittances
to be made.
The year before the war England's
imports surpassed her exports b. sl33,-
100000 sterling. That was the price
foreigners paid 10 England for the use
of her shipping, her banks, her insur-
ance companies and especially for the
capital she had lent them. This capital
is greatly diminished. She has sold
large blocks of her best securities; her
government is directly indebted to the
United States alone for over 100000
900. Notwithstanding the prosperity of
the war trade for the last half year. she
imported sl7s, 100000 more than she ex-
ported that would Re 1856 100000 n
year. Whilst her income from abroad
is getting smaller. her adverse trading
balance for the last half ueur is 30
per cent larger than it was for the
last UhOle year before the war. For
merly she had m excess of imports
over exports, because she was credi-
tor nation; this excess is growing to-
day because she is getting into debt
II has been estimated that Germany
paid to England for acceptances only
commissions on $500, 100000 a wear.