Evening star. [volume] (Washington, D.C.) 1854-1972, 1916-02-21


BERLIN, January 31.-New taxes,
perhaps an entire new taxation system,
are in prospect for Germany after the
war. What is to be their effect on the
great mass of the working population
Will salaries and wages have to go up
TO enable the workers to pay them?
Will retrenchment in personal expend-
lures. alone, be sufficient to cover
them? How, probably, will salaries
after the war compare with those paid
before the conflict started" VIII the
before-the-wa industries that are all
but dead now revive Immediately so as
to give employment and money to men,
now soldiers. who must pay the taxes
These are questions put by an Asso-
ciated Press correspondent to some OF
the leading industrial men and econo-
mists of Germany in an effort to get at
least a hypothetical solution of the
problem that is being discussed in al
most every newspaper in the empire
under the heading, New Taxes
Higher Wages Not Expected.
The majority of men to whom the
foregoing questions were put seemed
to be unanimous in the opinion that
salaries and wages after the war
probably will not advance beyond their
present height-whch is far beyond
what they were before the war in the
case of wages-because they are high
enough to care for all proposed in
creases in taxation, This majority is
so confident in Germanys thorough
economic soundness and in her eco
nomic future that they maintain, in
effect. no increase is going to be nee
essary. combination of frugality.
which the average German is easily
capable of. and of a business boom of
unprecedented proportions, these men
believe. isl going to do away with the
necessity of imposing the burden of
higher wages on employers.
The minority is divided between those
who do believe that increased emolu-
ments for workers are going to be a
necessity. with a consequent reduction
for time of capital available for in
vestment, and those who are not sure,
but who think that it may easily be
that employers will feel that it is the
just, if not the necessary, thing for
them to lengthen their pay rolls.
The correspondent found. however,
almost universal tendency to touch
but very lightly on that salaried class
of workers-petty officials, clerks and
so on-which benefits least from the
country's economic well-being, but
which must help to carry the burden
of extra taxation if that becomes nee
cSSdTE. IN virtually every Instance lne
answers to the questions in the open
ing paragraph applied to workmen get
ting wages, rather than to workers re-
ceiving salaries.
Thinks Wages High Enough.
Sigmund Bergman, principal owner
and director general of the Bergman
electrical works, probably the second
concern of it's kind in Germany, may
be said to be a fair example of the
majority, except that he makes GER
tain reservations. He believes existing
wages are high enough to cover what
ever taxation may come. unless the
countries now at war with Germany
consistently and for a long period of
time refuse to renew commercial rela-
tons with her.
For approximately a year and half
after the war" he says, 81 expect to
see a tremendous boom in electrical
and mechanical Industries in general.
We shall need that much time merely
to resupply our own countries with
the things that have been used up
during the war. We shall not need an
order from outside to keep every
thing going full blast.
The continued we'll being of the
German workman after that depends.
in my opinion, entirely upon the for
eign countries. If England, France,
Italy and Russia continue to hate us, if
they are willing to try to injure us
by not buying our goods and by using
others, no matter how expensive, then
there is no question that wages will
go down.
Such a course is in the nature of
cutting off ones nose to spite ones
face, and 1 do not think that any of
the countries in question will do it.
Russia and Italy especially need our
goods. and England cannot manufac-
ture them as cheaply as we, nor as
oil ta.a lar Iaho &c srfr %a1r
more expensive.
Wages today in Germany are unprec-
edentedly high-high enough. accord
ing to my belief, to meet the expenses
The return of few million soldier
w,orkmen won't drive them down,
either. because We need the men. They
will stay where they are and take care
of after-thewar expenses until such
time our internal needs are supplied
and the present enemy countries de-
eide they can afford to boycott us"
Noted Economist Optimistic.
Dr. Julius Wolf, one of the best
known economists, assumes an opti-
mistic standpoint, because he says that
Germany even today, with war loans
of almost 26,000,000.000 marks. plus the
entire debts of empire and all the
states, is really only just about even
now. This enormous debt, he says, is
balanced by the state and national pos
sessions-railroads. forests. domains
and mines. The entente powers. COL
lectively and individually. he believes.
are so much worse off that after the
war they will be broken, and Germany,
much better off. will have CONNER
ciai field in which to recuperate with
little or no opposition from her pres
ent enemies.
The tax problem of the future is I'M
questionably a very great problem he
says, but Germany's position is the
best of any because she starts in to
adjust her financial affairs with huge
sum on the credit side of the ledger,
consisting of her railroads, domains
and mines. The Prussian railroa DIS
alone today are worth more than the
combined debts of all the German
states.
Contrast us with England and its
huge state debt and immense war in
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