NEARLY BANKRUPT.

Poverty Bay Herald, Volume XLII, Issue 13636, 17 March 1915, Page 9

NEARLY BANKRUPT.

GERMANY UNABLE TO FIND NEW SOURCES OF INCOiNIE. AMSTERDAM*,. Jan.. 1?, > A Ministerial crisis causbd by the resignation of Herr Herman Kiiehn, the Imperial Minister of Finance, has caused much misgiving m German industrial circles, where it is taken ' tis i evidence tl:at the war has played.- -havoc- with Germany's finances.

Hen- Kuehn really resigns, not because of ill-health as announced, but only from fear of the overwhelming difficulties ahead. These are, first, the fear that the second war loan of £250,---000,000 to be. issueS shortly will be unsuccessful, and t&en the discovery that the imperial revenue drawn from, the income tax will suffer appalling reductions'; this year, owing 'to the numerous soldiers who have fallen leaving widows without income, and the fact that, most of the home industries being stopped, the average income of Germany's industrial people is terribly reduced. A third circumstance which has awakened Herr Kuehn to t-lic real statu of German finance is the growing demand throughout Germany that, the! widows of fallen soldiers should not be I compelled to pay death duties. This, owing to the heavy casualties, means millions less for the Treasury, and the income tax slump means the loss of many more millions. Herr Kuehn came to the conclusion that under these circumstances a third war lo&n, will have to be issued, not. only for war purposes but to make up for the enormous deficit m the usual income iieeded for. working the German State machinery. It was suggested that Herr Kuehn should resort, to a new taxon wealth, like that levied m 1913 to finance Germany's great Army Bill. As ,-it was then stated, however, that under no circumstances would another tax on wealth be levied for a number of years, another levy of that kind would be illegal, and Herr Kuehn feared that tho illegality would stir up serious trouble. there was no way out, and Herr Kuehn chose to resign rather than tear up the scrap of paper which he signed m 1913 promising that there should be no further tax on wealth. His successor, Dr. Heffferich, is one of the directors of the Deutache Bank, and is said to be a man of considerable financial ability. The choice is hailed m Germany as -that of a man of resource who will steer Germany out of her present financial troubles.

It . is ' remarkable that the Kaiser lias not written Herr Kuehn a letter of thanks, as/ is usual when a leading Minister really resigns, because of i!ihealth. ..-■-.•