Evening star., 1939-12-03
Describes FinIond's
Cultural Growth
Bu Frederic J. HaSkin.

save tndL IL occupied uIllQuc pOoltlOIA
in relation to its Indebtedness to the
United States Treasury AS one Of the
succession states Of the World War, It
became the recipient Of rehabilitation
loan, and although the sum was small IN
relation to the loans to various other
countries, the interest and amortization
increments have been promptly met.
The contrast between European debtor
which has scrupulously kept its finan-
cial engagements to this country and
those which have not has been so marked
that Americans have come to think OF
Finland as q model of European finan-
cial soundness in world out of joint.
How this has been possible must
necessarily be of interest to the Ameri-
can people as creditors. The explana-
ton is sound financial management and
determination on the part OF Finland
to live within it's own income and keep
its budget balanced, scrimping and
Tightening its belt in hard times, taxing
wisely and reducing its Indebtedness
abroad so far as possible.
The modern independence Of the Finn
ish Republic dates from 1917. Previously
it had been a Russian grand duchy,
kingdom and, at times, what might be
called a semi-detached part Of Sweden.
So its modern finances date with the
foundation of the republic. Needless to
say, troublous times have been passed
through in the intervening years, but
the desire to retain sound financial
position has been an outstanding char
acteristic. Because Of the growing un-
rest in Europe over the past few years,
particularly the past two or three years,
the expenditures for military purposes
have risen somewhat, but until quite
recently it is extremely interesting to
note that expenditures for public edu-
cation have exceeded those for defense.
indeed constituting the largest single
item of appropriation. This can be said
of few countries in the world.
The sources of Finnish revenue have
two general divisions: Taxation and
earnings from publicly owned enterprises.
While Finland maintains income and
land taxes, the rates of these imposts
are low There are no great fortunes in
Finland and the average income Is small,
so the income tax yield is low and, as
the peasant land owners are working till
ers of the soil, they cannot afford to pay
high land taxes. Invisible taxes con-
stitute the greater source of the coun-
try's revenues from the first source.
The largest collection Of invisible taXes
comes from duties on imports. There
also is an export duty, but 1t Is very
small. Then comes the revenue arising
from tobacco, but this is distant second
to the import revenues. The latest figure
on collection of customs duties gives
1920 900 900 Finnish marks, compared
with 1876 900, 900 marks arising from the
tobacco tax. The Finnish mark is worth
a little less than 20 cents in American
money. Other invisible taxes, collected
chiefly by stamps, are laid upon matches,
sweet stuffs, margarine products and
cattle, food, beer, liquor and wine. 1t is
interesting to note that the liquor taxes
bring in but half what the tobacco tax
does.
Finland is country rich In natural
resources and these are largely held and
exploited by the government itself, SO
substantial revenue arises from this gov
business source. The larg-
est item comes from the operation Of the
state railways. Posts and telegraphs
turn in revenue and also canals. Then
there is a substantial timber business
based on the enormous holdings by the
government of public forest lands. Pow.
der works, cartridge works, rifle and air.
craft factories and shipyards contribute
to the revenues and there also is a gov.
ernment-operated tailor shop. A marga.
rine manufacturing business and a.
printing Office also make money for the
state.
OF special interest is study Of Fin
lands public debt. While almost every
other nation in the world, notably in
cluding the United States, has for years
been adding to public debt, Finland
has been curtailing. Her revenues from
both taxation and business sources fell
off measurably during the years of de-
preston and debt retirement was slowed
down, but recently it has increased again,
with the result that the peak of indebt-
edness was passed in 1884. That refers
to total public debt. Retirements have
been restricted to debt owed to foreign
ers Internal debt has increased, but the
aggregate of the two has declined. Like
most countries, Finland prefers to owe
her debt to her own people rather than
to foreigners. Even without this pro-
gressive reduction in her public debt,
Finlands credit would stand high be-
cause her publicly owned resources, by
conservative estimate, are worth many
times the amount of the public debt.
The story of education in Finland is
of peculiar fascination, beginning with
the recital of ancient sagas by bards.
The New Testament was translated into
Finnish by the Bishop of Turku in the
10th century and there followed quite a
cultural Towering, although it was some
what confined to the ruling classes.
However, an extraordinary cultural law
was ordained in 1886 by the church which
had the effect of spreading a limited
education widely among the people. It
was provided that the clergy could not
admit to holy communion nor join in the
sacrament of marriage persons who
could not read.
At the beginning Of the present cen
tury, the Finnish Diet sought to bring In