The evening herald. (Klamath Falls, Or.) 1906-1942, 1918-09-25
GERMANS HAVE
blEAk0UTLOOK
FINANCIALLY

i WASHINGTON. Sept. 2&.--Ger
mans are about TO subscribe to theii
ninth Victory" loan. Whether I,
will be . Victory" loan depends on
some measure on how the American
people accept the new war taxes now
being fromed BY congress.
The German loan opens Sept. 80,
Just five days before the. United
States on its fifth Liberty loan. and
for the next four weeks Americans
and Germans practically will be en-
gagged 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 shown It
will be made in the form Of bonds az
five per cent interest and treasury
notes. Both securities are to be
issued at ninety-eight. which IL about
the average At which all the German
War loans have been flcated.
Il is thru 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
been resorted to. Of course. but a.
compared with taxation In England
and France or in the United States.
the extra tax burden 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 taxation. The war once q reality
they decided to meet Sctual expenses
By loans and impose only enough
extra taxes to meet the interest on
the loans. But - II fell out Germany
vas building her hopes on . poor
foundation. II 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 e. ~nilding
thruout the years would crush her
opponsnts before the end Of the year
1914. Belgium. France. and England
wsrs to pay heavy indsmnities to re-
coup the German treasury.
Had this plan matsrialised the Ger
man idea Of war finance would have
worked. but the war went on: Il 10
stu going on, and the German debt
= pillng higher. Present day Ger.
many is worrying little over the fin
sncial straits In which the nation
finds itself. Posterity must pay the
penalty.
To-day the German public debt IL
e37.7s7. 100000. about el.oeo.ooo..
900 Len than that OF Great Britain
and ti7.oee. 100000 moro than that
Of The United etatss.
Austria hss . public debt Of e13..
7s3. ZOO. 700 while the debt Of France
despite the tact this country has been
most torn By the actual fighting has
contfactsd about $4,000. 900 900 less
thaa that Of Germany. Before the
war Germany had . public debt Of
only little over. $1,000. 100000 less
By narrow margin. than that OF the /
Unitsd States.
Actual figures - 10 the amounts
Of the various German loans are un-
AVAILABLE. but Il generally known that
they have been larger than those Of
Grest Britain. The total expendi-
ture at the end Of March 1918. has
been L7.000.000.0o0.
Thru her present method OF taxa
ton 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 res0rtsd to.
while on I'd valorem levy was made
upon al property. Incomes wsr<
ths& capitalized and taxed. and an
sxcsas profits tax similar. in . way.
10 that IN vogue In the United States.
Wa0 adoptod.