Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1918-09-23
Americans and
Hun, in Race to
Raise War Funds

about to subscribe to their ninth vic
tory" loan. Whether It win be "vic-
tory" loan depends on some measure
on how the American people accept
the new war taxes nowt being framed
by congress.
The German loan opens Sept %, just
five days before the United States
starts on its fifth liberty loan and for
the next four weeks Amricans and
Germans practically win be engaged
in a race to drop their dollars into the
hopper Of the war mill.
The amount Of the German loan Is
rot known hero but it Is known 1t wiz
cent interest and treasury notes. Both
securities are to be issued at ninety
eight. which = about the average At
which all the German war loans have
been floated.
> 1t Is thru the war loan long series
of them in fact-that the German en-
pire has financed it's part OF the world
struggle. Taxation has been fesorted
10. of course. but as compared with
faxatfon In England and France or in
the United States. the extra tax bur-
den which has fallen to the lot Of the
German people has been light indeed.
Before the war Germany had adopted
some rather stringent laws for taxa
tion. The war once a reality. they
decided to meet actual expenses by
loans and impose only enough extra
taxes to meet the interest on the loans.
But as it fell out Germany was build
ing her hopes on poor foundation. 1t
was believed by the German people
that the war would be over in few
months: that Germany, by means OF
the tremendous military machine
which she had been building thruout
the years would crush her opponents
before the end of the year 1914. Bel
GUM, france and England were to pay
heavy indemnities to recoup the Ger
man treasury.
Had this plan materialized the Ger
man idea Of war finance would have
worked, but the war went on; it Is
sin going on, and the German debt Is
piling higher. Present day Germany
is worrying little over the financial
straits in which the nation finds itself.
Pcsterity must pay the. penalty.
Today the German public debt is
s27.75 .000, 600 about $1,000 900, 900 less
than that OF Great Britain and ST.
GGo.o 200 more than that Of the
United States.
Austria has a public debt Of S12,7S2,-
100000, while the debt Of France de-
spite the fact that this country has
been most torn by the actual fighting,
has contracted about 5000. 100000 less
than that of Germany. Before the war
Germany had public debt of only
little over $1,000. 900, COO less by a
narrow margin, than that ~of the
Cnited States.
Actual figures as to the amounts OF
the various German war loans are un-
available, but 1t 10 generally known
that they have been larger than those
of Great Britain. The total English
expenditure at the end of March 1918.
has been 7.0oo,0o0,0o0 pounds.
Thru her present method OF taxation
Germany can not 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 q tax on increased
incomes was then resorted to. while
an ad valorem levy was made upon all
property. Incomes were then cap
italized 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 respondA Attempts at tax
evasion thru false bookkeeping and
other means. were brought to light and
The personal properly tax called
for certain exemptions. Among these
iewels were included and the German
financiers made huge investments IN
pearls and other precious stones
These were taxed in turn but other
means Of tax lodging were discovered
The German will freely lay down his
life for the fatherland but he. will moi
lay down his money unless It 10 rea-
sonably secured and q fair rate Of in
terest Is promised.
Public interest In the German wal
loans has been stimulated by Amer
, lean publicity methods.
When II was discovered during the
early loans that the farming class waa
not buying bonds to the: extent ex-
pectcd, an educational campaign was
inaugnrated for their especial benefit
The third and fourth loans were de-
.signed for the special 'benifit Of the
laborin& classes. Bonds AZ low as ~
were PLACID Gil TIC market and met
4 with ready Sale. The last loans have
. 6een tor tho big Investors and since