Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-04
DIPLOMAT. ] Warned
OF PATERNAL|SM
Non Bernstorff, in 1914, Said
Income Tax Opened New
Road to Revenues.
d ndteyndiistie trends in Government.
ny AsHMUN BROWN.


sixteen years ago, a few months Pc
fore the great war broke out IN EuroPe,
this correspondent had an Interesting
serias of talks with Count j. II. Won
Bernstorff, then Ambassador OF Kaiser
william at washington, on the SuDJecC
of tendencies in government IN the
United states. Much Of what the Am
bassador said at that time was printed
in "a article which appeared IN num-
her of newspapers throughout the coun-
try; some of it, because OF the counts
diplomatic position, could not tnen DC
made public, but can be now.
A shrewd. detached, thoroughly IN
formed student of affairs, Count Won
Berustorff offered comment on the
drift even then manifest, toward pater-
nalism In America, which maSqueraded
under the title of progreSsivism. He dlo
not. attempt to prophesy directly, put
put his major predictions In the form
y Of unanswered questions ana speculA-
TORS, the wisdom of which has been
amply jisAded by the developments.
Raise in Costs Rapid.
At the period-the spring Of 1914
the country was witnessing its nrst
great swing toward elevated taxes. In
the preceding twelve months, as later
developed, the total costs OF Govern
ment In the United States, national,
State and local, had leaped forward
than a, o00, 000, 900, o gain OF more tnan
IS per cent, without the public realiz-
ing lust what was going on. That $4,-
O00, 0OO, 900 figure, 1t should be men
toned, is comparable with the more
than 10000, 900 which the several
forms of government are spending IN
the United States, and with the S.
100000, 300 the Federal authority alone
is spending in this fiscal year OF 1881.
Tl1e exact text Of Count Won Berns-
toff's remarks, at this length OF time,
can not be set down accurately. but In
paraphrase they were as follows:
s'Your ProgressiyeS are leading you,
whether they and you realize 1t, ana
whether rightfully or wrongtully,, dl-
rectly into Socialism and paterna1Sm.
Their progressive ideas"-ano ne
They seek to establish In this country
a bureaucratic centralized government
such as we have In the German Empire.
to supplant a government which here
tofore has been distinctly individual
istic. wonder II it will succeed.
Germans Obey Bureaucrats."
1--WE get away with 1t in Germany
chiefly because the Germans are an
Gratis without making trouble. But are
you Americans an obedient people?-
another chuckle.
at am q base ball fan and when OBJ
serve an uprising in the bleachers
against q decision Of the umpire ! am
prone to think you are not an ooeolent
people. In Germany scattered every.
where you will find the 'verboten
sign, It Is obeyed absolutely. Would
sfCwH.fAAaab cforY7 hA this 0k1eVed IN
American"
This, it should be recalled, was said
long before traffic signs and trafhc
LIGHTS were a feature Of the urban
scene and before the practice OF Jump
ing the light" became common. Long
also before the ''verboten" sign was
afIixed to beverage alcohol.
Prediction Proves True.
''You have Just adopted q constitu-
tienal amendment under which Con-
gress has imposed Federal income
tax" continued the count, referring TO
the amendment and the act Of 1918.
TT Is a small tax, minute when COM
pared with the taxes We have in Europe,
but it seems to me that it is just be-
ginning. I am no prophet, but would
say it is the inevitable that it will grow
until it becomes the chief source OF
Federal revenues"
That, of course, Is precisely what has
happened. Income tax collections in
1914 constituted only 8 per cent Of the
Federal revenues; last year they con-
stituted more than 81 per cent.
THE money viii come easily at nrst,
continued Count Won Bernstorn, for
you have no real idea Of what taxation
means In this country. We IN Europe
know. You haven't scratched the sources
of possible taxation. As the volume
of collections grows the demands Tor
expenditures must increase. Isn't that
natural and human?
Cites American PrOgressiveness.
s~But I am not referring to what
regard as an unacceptable increase In
the power and cost of the Federal Gov
eminent alone when speak OF the
American progressives' ideas having
been made In Germany. Let me explain.
at have observed that the tendency
to enlarge the powers-and thus the
costs-of municipal and State govern
ments is particularly marked. More and
more cities are going in for municipal
Ownership, for example. Very many OF
your college and university professors.
/ ind In my travels to those inStttu-
items, have done graduate or grad
Iiate work in German universities and
have returned profoundly impressed by
the efficiency Of our various govern
n1ents, particularly the municipal gov
ernmerts.
.''Notoriously, as Mr.. Bryce has
pointed out In his remarkable book your
weakest link in the chain of American
Government is your municipal govern
ment. Thus your intellectual leaders in
your universities and colleges, training
the minds Of your young men and
women, become champions Of the Ger
man system and impregnate their stu
dents with the idea of its superiority.
The result Is apparent in the Progress
siye movement and juSttfes my state
nIent that the Progressive ideas were
made In Germany.
Taxation Burden Increases.
Estates and municipalities, in. re-
Spouse TO these teachings, are taking on
more powers and duties and are becom-
ing more expensive. Taxation becomes
q great and greater burden, and some
complaint already is heard, although. as
/ have said, your people have no realiza-
ton OF the pinch OF taxation that We
Europeans feel. Now that the Federal
Government has established the income
tax, with untold possibilities for raising
revenue, 1t would be but natural IL the
states and local governments in time
should turn TO the central authority for
financial aid.
.''You have set your feet on the path
that We Germans have trod; you have
begun 3 revolution in your own Gov
eminent. am interested in speculat-
ing as TO the outcome OF It all--the
effect on your national spirit and ideals,
which are so different from our own.
Ito the European, ard particularly
TO this European. the finest thing in
this country, next to the spirit of self
reliance that so strongly prevails, Is
marvellous generosity and benevolence of