The debate on the Estimates had begun on Friday week
and was continued on Saturday last. The Government are deter- mined to adhere. to indirect taxation, but Baron von Stengel would not say more with regard to their proposals, as these have not yet been considered in detail by the Federal Council. Baron von Stengel promised, however, that every,effort should be made to avoid taxes which would hamper trade, or lower the standard of living among the working class. He declared that the ,unfavourable financial position was due to extra- ordinary expenditure rather than to a decrease of revenue. The gross deficit, as we learn from the report of, the Tinter correspondent, is £6,000,000, and the Government are -reducing , it to £5,000,000 by appropriating the money earmarked for thegiAlng Fund for paying off the National Debt. Baron von Itheinbaben pointed out that between 1881 and 1901 the National Debt had increased from £11,000,000 to over £120,000,000, and since 1901 it had risen to, 400,000,000.. This uninterrupted. increase injured the commercial prestige of Germany abroad. It is admitted that German, trade is still flourishing, and the contrast between it and the sad state of the finances is an.interesting subject of reflection to foreign. observers. Every attempt to reduce the Debt has failed, and we shall be curious to see what new taxes can be devised that will raise the necessary money without doing economic injury. The manipulation of the Tariff is so difficult that it,is shirked year after year, and .we behold the phenomenon of a Pro- tectionist country admittedly prosperous and yet apparently, unable to pay its way.
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