New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1919-12-28

mat must flow into the Golfers of the
government in the shape of taxes. So
iar as the national income is con-
cerned, the process may be described
as taxing money from one pocket and
putting it into another; but so far as
individuals or classes of individuals
are concerned the problem is of great
moment. For eXamTec, IN the United
states, where the personal income.
corporation and excess profits taxes
are the pillars of government finance
I ,.', where the average workman is
llttie affected by their operation. the
present interest charge is in effect an
agency which helps to redistributc the
natlonal income. The government
takes out of the pockets of the tax
paying classes funds in the form of
taxes and distributes them in the shape
OF interest among the holders of bonds.
consisting to an appreciate extent Of
the untaXed classes. The ratio Of debt
charges to national income measures
lAe relative burdens Of future taxation.
me increase in tax receipts during
The latest full fiscal year for which
data are available as compared WIN
the fiscal year Immediately preceding
the war, shows the following percent
ages: United States, 569.6; Great
britain, 3SO.2; Germany, 1881; Italy,
GAY; Canada, 85.7; Japan. 3O.8:
France, 265. In Germany this in
crease took place wholly in 1917. In
the fiscal years 1915 and 1916 the rev
enue declined considerably, and, al
though new taxes were enacted in
me iall Of 1915, they failed to stem
the tlde, for the total receipts were
less than in 1913 or 1914. The war
profits tax, the tax on coal and sales,
increased duties on cigarettes and
higher export duties were the prin-
cipal factors in making it possible to
almost quadruple the revenues for
1917, as compared with 1916
How Taxes Are Meeting War Debts
"A study of the emphasis placed on
direct taxes as contrasted with indirect
taxes dlscloses interesting facts, ire
spective of whether the distinction is
any longer of significance from the
point of view of fiscal theory. In Great
Britain the ratio of direct taxes to to. to.
tai receipts from taxation expressed as
a percentage rose from 448 in the first
eight months of the war to 1879 in the
lscal year 1919; in the United States,
from 1913 in the fiscal year 1915 to 67.I
\ the fiscal year 1919; in Japan. from
30 in the fiscal year Of 1914 to 1876 in
the fiscal year 1919, and in Italy it fell
from Al 2 in the fiscal year 1914 to
3o.4 IN the fiscal year 1919. In France
the ratio fell from 1856 in the last five
months OF 1914 to 27.9 in 1916 and PAP
IN I9l6; in 1917 it rose to 262, and in
1918 again to 1928 In the case of Ger
many, the imperial government had al
ways relied mainly on indirect taxa
ton, and not until 1917 did it enter the
field of direct taxation by introducing
the tax on war profits, coal and sales"
Financing Printing Press
In the financing Of the war the print
ing press method played an important
role. Regarding this the writer of the
pamphlet says: The total note cir
culatlon of thirteen belligerent powers
at the most recent date totals S77.954.-
600 900, as compared with 81 1913 900 900
before the outbreak of the war In the |
same interval the amount of note circu-
Iatlon per capita rose from $795 to
Sl2l.l6. The highest figures per
capita IN the pre-war period are
shown by the Allied group, while at
the most recent date the tables are re-
versed, the Central Powers having
CIRCULATION larger by 20.8 per cent
"Of all the nations Russia leads in
Its note circulation per capita at the
most recent date, although it's order
v as Will |dSt before tne war. France |
follows, with Austria com
blned) closely behind. The increase in
the note circulation of the larger coun-
tries may roughly be put as follows:
Russia, forty sixfold; AUSTRIA Hungary |
twenty onefold; Germany, eighteen,
fold; Great Britain, ninefold; France
and Italy, each tivefold; United States
fourtold, and Japan, threefold.
Departing From Gold Standard
The extent to which the gold
was abandoned during the
war may be seen from the ratio of
metallic reserves Of the banks of issue |
% their combined note and deposit |
liabilities. In the case of Austria
hungary, Russia, and Turkey the gold
holdings Of the banks of issue have
1windled to so low figure. and the |
outstanding liabilities against which :
he metal was supposed to serve as a
'eserve have grown to such heights. |
nat practically no remnant of gold
oasis is left In the Allied group, with |
he notable exception of Russia. the |
Italian banks of issue show the sharp-
'st decline in the ratio o. their metal |
ic reserves to their note and deposit
liabilities. The lightest effects of dis
organized banking have been az