The World. [volume] (Martinsburg, W. Va.) 1912-1921, 1918-09-23
lWlAIR TAX ARTICLE NO. II
OBv INC Associated Press }

0By The Associated Press.)
WASHING Sept. 22.-Germans
are about to subscribe to their ninth
Victory loan. Whether it will be a
"Vicory" loan depends on some mea-
sure on how the American people &C
cept the new war taxes now being
framed by Congress.
The German loan opens September
23, just five days before the United
States starts on its fifth Liberty
Loan, and for the next -four weeks
Americans and Germans practically
will he engaged in race to drop
their dollars into the hopper of the
war mill.
| The amount of the German loan is
not known here, but il is known it
/ will be made in the form Of bonds
lat five per cent interest and treasury
notes. Roth securities are to be is
sued at ninety eight, which is about
! the average at which all the German
war loans have been fioated.
Ut is through the war loan a long
series of them in fact that the Ger
man empire has financed its part of
the world struggle. Taxation has
4 been resorted to, OF course, but as
compared with taxation in England
and France or in the United States,
the extra tax burden which has fall
len to the lot of the German people
has been light indeed.
Before the war Germany HAD adopt
] ed some rather stringent laws for
taxation. The war once. a reality,
Gney decided to meet actual expenses
by loans and impose only enough ex-
ira taxes to meet the interest on the
I loans. But as it fell out Germany
was building her hopes on poor
foundation. ut was believed by the
: German people that the war would
be over in few months; that Ger
many, by means of the tremendous
military machine which she had been
J building throughout the years would
crush her opponents before the end
of the year 1914 Belgium, France
and England were to pay heavy in
IDENTITIES to recoup the German
Treasury.
Had this plan materialized the Ger
imam idea of war finance would have
worked, but the war went on; it is
still going on, and the German debt
lis piling higher. Present day Ger
many is worrying little over their
financial straits in which the nation
finds iself. Posterity must pay the
penalty.
Today the German public debt is
i Austria has public debt of $27,-
l7S2, 900 while the debt of France
despite the fact that this country has
I been most torn by the actual fight
ing, has contracted about $4,000, 000.-
900 less than that of Germany. Be-
fore the war Germany had public
debt al only little over $1,0O0,OOO, 900
Tess by narrow margin, than that OF
! the United States.
i Actual figures as to the amounts
of the various German war loans are
unavailable, but it is generally known
that they have been larger than those
! of Great Britain. The total English
; expenditure at the end of March,
\ 1918, has been 100000, 900.
Through her present method of
taxation, Germany cannot even hope
to pay the interest ON her war loans
The attempt to levy an increased tax
met with stern opposition on the part
of the Federal states and tax on in.
creased incomes was then resorted
to, while an ad va.orem levy was
|, made upon all property. Incomes
| were then capitalized and taxed, and
an excess profits tax similar, in a
way, to that in vogue in the United
States was adopted.
! but the German corporations did
not respond. Attempts at tax eva
sion through false bookkeeping and
other means were brought to light
and punished.
!, The personal property tax called
for certain exemptions. Among these
jewels were included, and the Ger
;, man financiers made huge invest
ments in pearls and other precious
lstones. These were taxed in turn,
but other means of tax lodging were
covered. The German will freely lay
down his life for the Fatherland, but
islle will not lay down his money un-
less it is reasonably secured and a
fair rate of interest is promised
i Public interest in the German war
| loans has benn rti,o ,,lafad hv Au1nrsi.