Evening star. [volume] (Washington, D.C.) 1854-1972, 1932-09-25

Thus. as a result Of the war. public
expenditures have increased and the
wealth of the countries that took part
in it has decreased. In many a country
a smaller wealth Is made to pay ever
i growing taxes.
Take the case Of France. the country
which. owing to a combination of cir
cunstances. finds itself in more
favorable position than the others. BY
what amount has Frances wealth in
creased or decreased since the war?
It is not easy to answer definitely
The most reliable index is represented
by the inheritance tax. From 2 report
compiled by the French minister of
finance I have ascertained that the
wealth. in gold francs. transmitted by
inheritance, has decreased by at least
one-fourth since 1918,
The tendency to raise taxes IS es-
pecially marked in those that are con-
sidered most harmful. / E.. customs
duties 1t is demagogy that on one
side aims to soak the rich" and on
the other drives people to demand
higher tariffs. With them all the old
prejudices come to life again and, as
it is a common belief that in the end
the burden of high tariffs rests on the
foreigners. an agreement between in
dustry and labor for greater protection
is easily reached.
We must go back in thought to a
time long past to find a period of
absurd protection comparable to that
now raging in Europe and in America.
The American tariff of 1880 caused
violent stir in Europe which remains
the largest market for consumption
BY way of reprisal % European states
raised their tariffs enormously, some of
them going so far as to render them
actually prohibitive by limiting the
quantity of goods to be imported.
Since America. they argued, has
barred all European workmen and Is
buying as little as possible of European
products. it Is quite natural that
Europe, too. should become protection
ist and exclude from its markets the
largest possible amount of American
goods. AS is we'll known Asiatic. South
American and African trade is largely
dependent on European trade II
Europe does not buy from Japan and
Brazil, Japan and Brazil cannot buy
from the United States.
I am convinced that what has in
duced the various countries to adopt
such absurd tariffs, or. at least, what
has made them possible. has been the
increase of public expenditures. All
have labored under the illusion that
the foreigners could be made to bear
the cost Of national expenditures; the
same logic-or, rather, the same lack
of logic-has worked everywhere. Thus
both economic solidarity and safety
have disappeared entirely.
All are seeking the origin Of the de-
preston In the wrong place: all are
demanding that painless remedies be
applied As matter of fact, the deep
seated causes of the crisis lie in ex-
| travagant public expenditures in the
| fatal system of reparations and debts
and In excessive protection.
The remedies consist in doing the
opposite Of what has been done unit
now Each country must, as a first
step toward its salvation, balance it;
budget. Owing to the heavy pressure
exerted by the present taxation, the
utmost caution should be used in levy
ing new taxes. Rather economies
painful as they may be, particularly al
this moment-should be practiced
Only a reduction In ornaments ahc
the elimination Of protectionist alb
surdlties can re-establish equilibrium
and promote world aconom1c zecoxeEy