New-York tribune., 1920-01-16
Favor The Hague
For Conference
On Europe's Needs
Memorial Sent to Govern
ments in Part Designed
to Induce France to
Increase Direct Taxes

The worldwide conference or eco
nomic representatives of the leading
nations. the need of which eminent
citizens in eight nations have expressed
in memorials to their respective gov
ernments, will probably be held at The
Hague, Holland, and ought to take place
by March l of this year, bankers as
sociated with the movement to stabii-
ize European conditions declared yes
terday.
Although the effort was again de.
scribed as "a simultaneous combustion"
in various countries, it was admitted
that the neutral countries Of Europe
took an especially active part in ar
ranging the demonstration. The idea,
it developed, has been under consider
alton for many weeks, and was dis
cussed by American fnanciers who
recently travelled across the Atlantic.
The first step toward better condi-
tions that the sponsors expect is "a
cleaning house financially" by the
countries which expect to come into
the foreign money marts as borrowers.
Tho particular recommendation made
was that the countries increase taxes
sufficiently to go on as near pay-as-
you-go basis as possible. The language
of the memorial on this point, 1t was
learned, was directed especially to
France and in part to Italy and the
other nations.
The French High Commission yes
terday made public the contents of an
official cable received from the French
government to the effect that the in
come from taxes during 1919 far ex-
ceeded estimates, and that the Presi-
dents of the Departments General
Council had agreed in opening ad-
dresses Wednesday to suggest to the
government that expenses be reduced
and the rate of taxes be increased IN
order to put the country on stable
basis
According to the French High Com
mission statistics, the income OF france
from taxes, both direct and indirect
last year amounted to l0,7O4,30 loO
francs. an increase Of 6,163, 1909, 100 over
1914. However, a leading lnterna.
tional banker asserted that France
would have to take in between 15,0OO,-
900 900 and 10000, 100000 francs in or
der to break even.
Because of unsatisfactory transm!s-
sion the list of French signers to the
memorial, which came yesterday, was
received in indistinct form, but IN
cluded the names of Raphael Georges
Lew. member of the French Academy
and professor of political economy; X
Lehideux, president of the Bankers
Union, and M. darcy, president OF the
Comite Houillieres.
Moreover, it was learned from the
American sponsors that the memorlals
had heen presented to President Wilson
and to the Chamber of Commerce OF
the United States and that copies hac
been sent to the Secretary of State anc
the Secretary of the Treasury. The
next move, so far as the Americans
are concerned, is up to the Chamber Of
Commerce, which has been asked &c
name the delegates from the Unltee
States. In other countries it Is ex
pected that the government will ap
point the representatives.
The demonstration was described a.
an attempt Of influential cltlzens tf
step into the breach and take the inltla
tive instead of tagging behind waiting
for governments to act to save EUROPE
from chaos.
According to the French High Com
mission, it was estimated at the begin
ming of 1919 that France would receive
a total of 8,240,000,00O francs. I'M
! increase of receipts over estimates wa
! distributed as follows: Actual re
ceipts from indirect taxes, AL ,8O9. lo'
| francs larger than estimated; receipt
from income tax, 33,500,0oO franc
greater than estimated; receipts. iron
war profits taxes, 987,ooO,oo0 franc
greater than estimated,
Moreover the rate of increase grey
larger during each quarter OF l9l;
The increase of indirect taxes, includ
ing state monopolies, amounted T.
3.i55,0OO francs in the first quarter
351 ,341 800 francs in the second quar-
ter, 450,033,300 francs IN tne tna1
quarter and 637 ,379,50O IN the 1our.
Hnarter. The largest part of the lat
ter oroup of taxes came from impost
on Commercial and private transac
tions. rather than state monopolles.