Evening star., 1925-04-16

The proposed French levy on capt.
tai which came to the front in the late
days of the Herriot administration,
has been extensively discussed by
American newspapers apart from the
political incidents which accompanied
the failure of Herriot's cabinet. The
comments relate largely to the nearly
bankrupt condition of the French gov
ernment and the desperate necessity
for reduction in government expenses.
Nothing but despair-unlesS 1t be
sheer audacity," says the San Fran
cisco Bulletin, could have prompted
such a panic proposal as that of a
levy on capital. A forced loan is a
dangerous experiment in a monarchy;
in a republic It is almost certain TO
spell disaster. It's mere proclamation
is calculated to paralyZe industry; to
suspend new enterprises and cause
widespread unemployment. French
industry needs all the capital it has,
and if a large amount is to be diverted
to the government, production must
be curtailed" The Pittsburgh Ga
zette Times thinks France is in no
mood to tolerate such unnecessary ex-
actions as levy on capital. THE re-
suit" declares the Gazette Times,
would be another demonstration of
the truth Secretary of the Treasury
Mellon has been broadcasting-sup
burdensome tax levies viii not yield
adequate revenues" ..-s~ :.
On the other hand, capital levy
is recognized. by the Detroit News as
a desperate expedient to meet a des-
perate situation. THE government
must have funds" the News believes.
"If it's prints more paper to meet its
obligations, it invites a further fall
Of the franc; and If such a course is
persisted in, there comes eventually
the suffering and collapse of business
that Germany experienced when she
printed marks by the billions and tril-
lions, which were finally worth zero"
X X
Two disadvantages in q capital levy
are noted by the Peoria Transcript,
which explains that although it would
not apply ostensibly to learned"
capital, 1t would be violently opposed
by the business interests, "and it could
not be put into operation in time to
supply the treasury and the Bank of
France with bank notes so urgently
needed" The Transcript also calls at
tention to the fact that capital levy
agitation is said to have been largely
responsible for the flight of French
capital during the first quarter of the
present year.
The suggestion that patriotism
might be effective in obtaining sup
port for the levy on capital fails to
impress the Chicago Daily News,
which finds in the crudeness Of the
idea reasons fer opposition on the part
of both conservative and radical
groups in Parliament. Discussion of
the bizarre compromise" argues the
Daily News, Should give its oppo-
nents an opportunity to disclose supe-
rior and more courageous qualities of
statesma nship. Perhaps some French
group will be bold enough to propose
rigorous public economy and higher
taxation of all elements in preference
to a disguised levy on capital
The French governments failure to
approve another disarmament confer
ence is cited by the New Orleans
Tribune in it's criticism of unneces-
sary expenses for army and navy
establishments. The Tribune also
feels that 1.-The idea of taxing them
selves heavily enough to make a real
dent in their debts and running ex-
penses may itself make them un-
happy; but they viii get over that
in time, for the process will cure the
necessity for continuing it."
Endorsement of Herrtot's stand for
sound money Is given by the Kansas
City Journal, which declares that this
Ipolicy was in line with the statesman
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