The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1918-09-25

sacola naval air station.
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taxes to meet the interest on the
loans. But as it fell out Germany
was building her hopes on a poor
foundation. 1t was believed by the
German people that the war should
be over in few months: that Ger
many, by means of the tremendous
military machine which she had been
building throughout the years would
crush her opponents before the end
of the year 1914. Belgium. France and
England were to pay heavy indemni-
ties to recoup the German treasury.
Had this plan materialized the Ger
man idea of war finance would nave
worked, but the war went on; it is
still going on and the German debt
is piling higher. Present day Germany
is worrying little over the financial
straits in which the nation finds her
self. Posterity must pay the penalty
German Debt Heavy
Today the public debt is S27. Isl. 600
600 more than that of the United States.
Austria has a public debt of Sf2, 1872, :
100000 while the debt of France des-
pite the fact that this country has been
most torn by the actual fighting has
contracted about Sc, DOC, 100000 less
than that of Germany. Before the war
Germany had a public debt of only
little over 81 ,OO0. 100000, less by a mar
row margin, than that of the United
States
Actual figures as to the amounts of
the various German war loans are un-
available. but it is generally known
that they have been larger than those
Of Great Britain. The total English
III
has been S7000,000,000 pounds.
Through her present method of tax
alton 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 advalorem 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 evasion
through false bookkeeping and other
means, were brought to light and pun
ished.
The personal property tax called for
els were included. and the German
flnanciers made huge investments in
pearls and other precious stones.
These We're taxed in turn, but other
means of tax lodging We're discovered.
The German will freely lay down his
life for the Fatherland, but he will not
lay down his money unless it is rea-
sonably secured and a fair rate of in
terest is promised.
Public interest in the German war
loans has been stimulated by Ameri-
can publicity methods.
When it was discovered during the
early loans that the farming class We're
not buying bonds to the extent expect
ed, an educational campaign was in
augurated for their especial benefit.
The third and fourth loans were de-
signed for the special benefit of the
Iaboring classes. Bonds as low as
s25 were placed on the market and met
with ready sale. The last loans have
been for the big investors and since
the bonds sold at from 9715 to 9s1s
it has not been difficult for the gov
eminent to find plenty Of buyers.
Banks Get Funds.
The banks have given great aid in
the disposition of the bonds. For their
share in disposing of the bonds they
We're given fat commissions, a method
which worked well during certain
periods of the American Civil War
as such, made heavy
investments in bonds, the public
treasures Of these municipalities be-
ing compelled to borrow the money
with which to make the purchases.
Educational campaigns have Be 4
an important means OF stimulatir~
terest in the war loans, but coerc In
one form or other has also been used
with characteristic Prussian high
handedness. This has been especially
true in the case of soldiers. II they
did not buy bonds leave of absence
was denied, 6lisagreeable duties were
forced upon them and they We're never
in line for promotion.
German leaders have offered many
solutions of the past-bellum problem
which confronts their country. Fut-
1re generations have been saddled
with a debt which they can scarcely
hone to clear off even by drastic