East Oregonian : E.O. (Pendleton, OR) 1888-current, 1922-02-16
IRISH FREE STATES
SHOULD Be PROSPEROUS
r. CHAS MeCANN.
Omitted Press Staff Correspondent

UNITED Press Staff Correspondent
DUBLIN. Feb. LEU. Plead
ers of the Free State party have big
for Ireland's future, economical
ly as we'll as politically.
They expect establishment of the
Free State I be followed by an influx
Of capital. building up Of firmly estab-
lished industries, reduction in taxes
and general peace and prosperity.
The new nation will begin its life on
a sounder financial basis than any
country in Europe involved in the
world war.
Though under che treaty Ireland !
will assume a proportion of the Brit
ish war debt. this will be offset large
ly by claims for damages in the recent
fighting in Ireland. Many of these
will not be prosecuted as strongly
against the Free State as they would
have been against England, And they
will not carry the interest England is
paying on her debts, and which force
a thirty per cent income tax in Eng
land Scotland.
Irish bushes smen are enthusiastic
over the new prospect. Already bust
ness is picking up in Dublin. Britich
investors are glad to get their money
into Ireland, apparently, and the out
look is good.
1t is quite likely that there will be
large Withdrawals of capital from
England by Irish investors, and Irish
companies. AS TO the former, with
the hope of smaller income tax, unless
there is some exemption for Irish in
vestors-and exemption would cause
protests from Dominion investors, be-
cause they were not included-they
must continue to see their dividends
on their English holdings shorn of
British income tax They are likely to
withdraw their capital and put it
Irish companies, with the hope OF
smaller taxes.
As to the latter, many huge Irish
companies are registered in England
and their stock is subject to income
tax. The Guinness Company, makers
of the famous stout, is one. 1t has u
000, 900 pounds capital.
So far there has been no authentic
indication as to what taxes in ireland
will be. And there has been no so
luton offered for Irish investors. Of
ficials of the Free State party have
been SO busy in effecting the transition
from British to Irish rule that the.
have had little time for internal con
III ST ructiVa nrohlpms
With the prospects of a bitterly
fought campaign to obtain 'approva
of the treaty at the forthcoming cleo
Ition, they will have little if any tim'
to prepare legislation.
Financial, fiscal and other legisla.
ton must be framed after the state
itself is set up.
When tax legislation is framed. il
should be somewhat heavier than is
indicated by optimistic reports of &
five per cent income tax, but it should
not be more than half of that in Greai
Britain, at least at first.
One great advantage is relief from
che burden of an $4,000, 00O-pounc
yearly contribution to the British
'N"S"'S hOA Pe'POSN'
A disadvantage Is the dual govern
ment in lreland-complete govern
ments for north n south In a coun-
try OF less than ~5,OOo,ooo people,
1t VIII not be until, at some distant
ume' ulster and the south are united
; That ireland can be governed with real
efficiency. That was why the recent
Collins-Craig agreement, though II re-
lated principally TO boundaries, boy
cott anu railroads. was sreeteu heIe
ana III england as the most mpor
ant feature Oh the new era III lreiaho
since the signing or the treaty
collins and Grittith n thelr heip-
ers are business legislators. 10 inc
! die-hards In the Dali they sa1d frank
~ that despite any opposition tney
meant to give a square zeal 10 union
ISIS In the south ana TO ulster user
They know that is the only way &c
prepare for the eventual union. inc
agreement was important not only as
the first meeting OF the new eaders
but the first real meeting or nortn aho
south. EX-preSldent de valera, VINO
met Sir James Craig some months
: ago, was not the man. He seldom gets
farther in a conference than q mono