El Paso herald. (El Paso, Tex.) 1901-1931, 1916-02-15
GERMANY MUST
REVISE TAXES
People Discussing Whether
Wages Will Increase in
Proportion to Taxes.

after the war. what IS 70 ne lhelL Ell
feet on the great mass OF the ~or I-fNl,Il5
have to 90 up to enable the workers
10 nav them3 VIII retrenchment in
personal expenditures. alone, be SUM-
Clent to cover them? How, proDably
will salaries after the war compare
with those paid before the conflict
started? VIII the before-tPe-war IN
dustries that are ali nat Gead now re-
vive Immediately so as 70 give en-
ployment TO men, now soiuleIs' WIN
must pay the taxes?
ciated Press correspondent TO some OF
the leading Industrial men ana ecoho-
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
The majority Of men to whom the
questions were put seemed to De unan-
imous in the opinion that salaries ana
wages after the war probably viii not
advance beyond their present. height
which is far beyond what they were
before the war in the case of wages
because they are high enough TO care
for all DrOpOSed increases in taxation.
The minority is divided between
those who do believe that increased
emoluments for workers are going 10
be a necessity, with consequent re
duction for time of capital aVallaole
l.
sure, but who think that il may easily
be that employers will feel that 1t is
the lust if not the necessary thing for
them to lengthen their payrons
"Wages High Enough
Sigmund Bergman, principal owner
and director general Of tho Bergman
Electrical works, probably the second
concern of its kind in Germany. may
be said to be a fair example OF the
majority. except that he makes certain
q believes existing
wages are high enough to cover what
ever taxation may cOme-unless the
countries now at war with Germany
consistently and for long period OF
time refuse to renew commercial rela-
tions with her.
Wages today in Germany are un-
precedently high-high enough, ac-
cording to my belief. to meet the eX-
penses that are going to come after
the war" he says. The return of a
few million sOldier-wOrkmen won't
drive them down either. because we
need the men. They viii stay where
they are and take care OF after-the-
war expenses until such time as our
internal needs are supplied and the
'presnt enemy countries decide they
can afford to boycott us"
'1n Better Shape Than England"
Prof DR. julius Wolf. one Of Germa-
ny's best known economists, assumes
an optimistic standpoint because he
says that Germany even today. with
war loans of almost 20 billion 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 ma
tional sessiOns-railroads, forests.
domains and mines. The Entente pow
ers. collectively and individually, he be-
iteVes are so much worse off that after
the war they will be broken, and Ger
many much better off. viii have
commercial field in which to recuperate
with little or no opposition from her
present enemies.
1.-The tax problem OF the future is
very great problem"
he says, blu Germanys position is the
best OF any because she starts in 10 /
adjust her financial affairs with huge
sum on the credit side Of the ledger,
of her railroads, domains
and mines. The Purssian railroads
alone today are worth more than the |
combined debts of all the German
states.
Contrast us with England and its |
luge state deOt and immense war in |
iebtedness. and with only its Suez /
anal interests as credit. Compare 4
is with Italy, the most over taxed ma 1
Ion IN the world. In contemplating |
What our taxes will be, remember that I
1ngland's taxes even today may be i
allied sky scraper taxes in compari- /
on with which ours are like the prov
rbial white raven"
The middle ground, so to speak, IS |
AIKEN by DR.. Schmidt, economics eX-
'ert OF the Victoria Insurance COM /
amy, one OF the largest concerns of its 1
lind in Germany. DR.. Schmidt not only /
las to deal intimately with the com
Iany's thousands of employees but with
Is scores of thousands of policy hold
RS, and is in a position to know the !
probable effect of taxation on the
as passed through the minds of count Z
sss II not all employers that increases
nay be necessary. but feels that the 1
verage employer is not usually altru-
site and that therefore raises must be
Orced by those who need them. This
mployer and man Of means In gen. :
raj has shown himself throughout the
'ar to be self sacrificing and though
al of those dependent on him.
Dr.. Schmidt disputes energetically
he claim OF labor leaders that the re-
lrning soldiers after the war are go
lg to depress wages. and upholds the
Ontention of Herr Bergman and 9th
rs that Germany needs and will need
)r some time to come all the workers
le can get, merely to resupply herself
kinks Increased Salaries Necessary.
me best representative OF the ont
nd out believers that Germany is 70
se a general and all around rise in
llaries is the director of one o. Ger
any's largest banks. who looks at
le matter from the standpoint of the
llaried employe rather than that of
ie wage earning wOrkingman
He is confident that the heavy taxa
on following the war will necessitate
general advance in both salaries and
ages. and that this in turn will cause /
slowing up In the creation of new
pital for investment The war. how
er, he says. has revealed Germany's I
.onomic strength in a new light
hich makes a new scale of measure
ents necessary, and that which earlier /
emed an impossible task now seems
UGH easier.
The burden Of the new taxation, he /
clares, will not be as great as super
tally appears, for there is likely to
a good indemnity coming to Ger
any. The empires war outlay, he es-
mates, at a probable so billion marks
welve and a half billion dollars.)
Thinks COnfiscntfOn Necessary.
The general lay view is voiced by
unit kospOth, a member Of the house
lords of the Prussian diet, who de-
ares that even a doubling of present
xes will raise only an amount equal
drop OF water in the ocean. and
at the bulk OF the debts must be
Undated by strict economy.
Count kOspOth's doctrine is hailed 1
everyone as sound. but not a few
We smiled at its declarations, for
is man of comparative wealth. His
that Germans be con-
nj to ride in street ears instead OF
zicabs. and to do with four hunters
stead Of eight. hardly appeals to the
orer classes.
He predicts openly that confiscation /