Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1917-06-22
CERMANY'S FINANCIAL
CHANGES
War Loan Subscriptions Followed
BY Tax Leviss That Threaten
Conllscation.
(By olof zsthaauA).

COn110C0000
(By Olof zetheliuA)
The whole German system Of
financing the war has been complete
~ changed ~ q consequence OF b
proiongation Of the conflict German
business men now frankly admit that
they did not expect, 1t n beginning
Of the war. that It would hast more
than q year. The statesmen Of Ger
many therefore adopted the old .prin-
ciple Of Won Bismarck. that Il ID
enough, II the people bleed and that
they shall nbt be forced to eeortdce
their wealth At tbs same time" The
war expenses were covered so!ely
But as the war lasted month after
month, without the end even n sight,
it became necessary for Germany. to
have thought Of tomorrow. The gov.
eminent then resorted to q combine
ton Of war loans and wa taxes. The
first among the latter to be introduced
some cases amounted to 80 per . n
Of the profits. and up to the present
other new taxes on tobacco and
| cigarets as we'll a. increased postal
rates yielded an additional $126.0oo,s
900 during the last year.
Although the sixth German war
loan has been successfully aoated, the
growing worse in Germany, making
more drastic taxation necessary. Three
billions. two hundred and forty.four
million dollars 10 the result Of the
sixth German war loan. according to
Anal statistics, recently published by
the imperial treasury.
The number Of subscriptions 10
$500, 900. among them 100000 SUBJ
scriptions Of amounts up to 200 marks
or approximately $50. The reichstag
has been forced to adopt the proposal
Of the government for considerabls
The new German wal taxes consist
Of a 40 per cent addition to the tax
on war profits; a special tax on every
ton Of coal az 1t leaves the mines,
amounting to 20 per cent; and = spe.
cial traf1c tax; The new prosram. Of
about $3.50. 900, 900. during the next
fiscal year. will strain the financial
endurance Of the German nation to
the utmost.
The new coal tax will be a heavy
burden on the Industries, eve II the
yield Of the heat from the coal fire
In order to protect private consumers
Of small means, the communities are
advised to buy directly from the
mines. thus eliminating all the inter-
mediate profits. For coal Of this kind
the tax is only 10 per cent. The COM
munal authorities will then divide this
poorest classes. For briQuettes the
tax is Is per cent, q favoring' Of this
comparatively new German industry.
Leases will not protect the tenants
against an increase Of the rents on
account Of the new coal tax, because
q new law has been enacted. emitting
the owner Of apartment houses, ETC..
in which steam heat constitutes one
OF the privileges Of the tenants, to
increase the rent, In spite Of q run
ming lease. The new tax on coal will
probably prove q further stimulation
OF the tendency displayed during the
war by the German people. to live
in hotels whore the expenses can be
reduced to a minimum.
The traffic taxi per cen on tho
smaller rates and ~ per cent for
amounts over q certain sum-applies
even 20 the street railways. Railways
with q construction cost Of 100000
t per traffic kilometer, for instance the
Berlin, are totally exempt from this
! tax. The coal shipments are naturally
free from the traffic tax.
j, The sixth war loan combined with
the new war taxes will Ger
many's expenses until the first part
OF next year No one Of the many
German financial experts" has. how
ever, yet dared to discuss the ways
of meeting tho cost Of the war after
that time.
For the present the German gov
eminent feeds the nation with inspired
stories about "the victorious retreat
Of Won H~indenburg's armies which
will end the val within The next six
months" But In awakening on the
part Of the German nation cannot be
prevented, only postponed. Very soon
they will realize the desperate sit
uation Of the central powers, created
by the United States entrance into
the war on the allied side.
Will the German people then be
willing to continue their tremendous
sacrifices in blood and money. only
to satisfy the desire among . the
1unkers and the captains Of industry
for territorial and commercial ag-
erosion, or for "a place in the SUM-
as the Prusslan militarists 20 PRETTY
call it?