PROGRESS OF THE WAR WAR TAXATION

Evening Post, Volume XC, Issue 13, 15 July 1915, Page 7

PROGRESS OF THE WAR

WAR TAXATION

RUMOUR OF A BALKAN BLOC WHY THE BALKANS HESITATE. THE NEWS COiMES FROM GERMANY. ! t Monday's cable news staled that th» Kings of Rumania, Bulgaria, and Greece were shortly to meet in Athens. Today it is reported that several German newspapers announce the formation of a Balkan "bloc" or alliance, on the initiative^ of Bulgaria. It is hardly likely that a press so much under Government control as the German would make a, statement of tin's kind without good grounds j but it is the first news of such an event, and can only be re-ga-rded isi the meantime as speculative. No doubt if the Dardanelles campaign had prospered more rapidly than it has clone, the desire of the Balkan neutrals to be "in. at tho death" and secure, a share from the dismemberment of Turkey would have brought about & decision before this. Writing- in May on Rumania's attitude, Dr. E. J. Dillon stud that in Rome fervent hopes were everywhere ■expressed, not without a tinge of doubt> that Rumania might soon sink the petty claims which her Government had recently been raising in its conversations with Potrograd. "It eeems probable that this consummation may be reached in Rumania, as in Italy, by an outburst of public sentiment in favour of the rights of the smaller States to live in peace. . . .To-day, in Rumania, a single statesman is interposing lm personality between tho nation's aspirations and their realisation, and that statesman is the Premier, M. _ Bratiano. , . . Rumania's intervention in the campaign to-day will be of enormous value, moral and material, to- herself and the' Allios. In a, few weeks it may become prac* tically worthless or even wholly unacceptable." - The procrastination of the Balkan States has been due to many causes ; the efforts of the enemies' representatives, tho slowness of the Dardanelles campaign, and. latterly, the great Russian reverse in Galicia,. have all played their part. But in each of these factors there have been important changes. As to the first, the Germanic diplomats, unable to make headway with their propaganda, have tried to force an issue upon Rumania by sandwiches of threats •and' bribeß'-^a mixture not calculated to improve the temper of the patient. Tho Dardanelles campaign is slow, undoubtedly, and the end is not in sight. But the Balkan States have heard the mmours of Turkey's impending dowh« fall 5 and if they intend to carve the Turkey they know they mittst help to catch it. Turkey making a suit for peace would be a sorry sight for tho ambitious Balkan States if they .were too late. Tho great Russian retreat, while it threatened Russia's safety, must have encouraged the bargaining instincts of Rumania very much; but the G«r» man-Austrian operations in Galicia hay» been checked, and Rumania cannot count too much upon that military sitution as a lever. Moreover, all the Balkan States have no doubt becn,-studying as carefully as they can the real effect upon an impressed ally (Turkey, to wit), under the gentle suasion of the German v army boot. As far as choice between ' tho Entente Powers and the German* Turkish group is concerned, the interests of Greece, Bulgaria, fend Rumania are not vastly unlike ; and for these reasons the German press -rumour may be quite correct. THE LAND CAMPAIGNS. The western front continues to fihtnr the earn© symptoms as haVe now^exißted for over a fortnight— -numerous German aggressive movements, alLof which have Math more or less difficulty been repulsed, Ihe enemy gaining little or nothing. The chief of «thcee appears to have been the renewed 1 attacks ai, Souchez and in the Argmuie, the^latter being on the larger scale. These numerous attacks may b© intended to screen from observation tho locality of an impending attack of the first magni» tude; But there can naturally "bo no certainty about such a. matter. The campaign in Poland und Galicia has suddenly quietened down, the lull dating from the Russian victory _at Kraenik., and the conseqxiont disorganW 'tion of the enemy's advancing line. There- has been a Russian success at Katnionka, on the Bug, north-east of Lemberg, where the enemy are reported to have been thrown back to the .Peltew (Peltef) Rivor. Heavy artillery fighting on the Bobs lUve* in Northern Poland, and desultory attacks «lee> where, complete the story of actual con. flict. A BUMOUR FROM ZURICH. There is, however, a rumour from Zurich (Switzerland) that the Germans are concentrating heavily at Thorn, the great military centre on the Vistula : just within the Prussian frontier; and this is held to forbode a new attack upon the Bussian centre. Setting aside the manifest difficulties of gettihg from Zurich reliable information as to whaS is going on in Thorn, it 5b not an impossible story. Thorn is the natural centre of concentration for a_ frontal attack on Warsaw, such as failed utterly on the Baura and Rawka rivers. Btrt, though possible, it is hardly likely. In considering such rumours, one has to malto some choice- between an offensivein the east and one in the west. Germany cannot be in any better position to carry out both together now ( thaii she has been hitherto. She has already been trying to throw dust in the eyes of the Allies by pushing attacks at many points in France. Until it materialises, the reported concentration at Thorn t remains a similar phenomena — possibly only a- feint, possibly something big. As ia the case with all tho throats on the I west, it has to be guarded against. Fortunately, tho Russians should have a» ample- defence against an offensive front Thorn. HINDENBURG'S BIG TASK. There is a wondeil'ul story from the Dutch newspaper Die Tijd. It cays that yon Hiudenbui'g (yesterday reported 1 to been told by the Kaiser to hold hi* tongue) ie not in disgrace. He is evolving a wonderful' plan, which will purprise not only the Allies, but the whole world, and will probably end tho war. It sounds too g^ood to be true. The only way in which Germany can really, surprise the Allies would be to adopt civilised methods and a civil manner, apologise all round, and accept peace on the Allies' terms, Moreover, chat would end the war. But it seenis too ■responsible a piece of work to be put into voll Hindenburg's hands. BRITISH BLOCKADE'S TERMS. tt, will interest many people to learn what is the exact basis of the restraint exercised upon the enemy's trade in tlm North Sea — a point on which through some oversight the cahlo service failed to throw any light. The vital parts of tho Order in Council on tho subject, issued in tho middle of March, aro given thus in tho Manchester Guardian's historical record of tho war ; " 1. No merchant vessel -which sailed from her port of departure after tho Ist March, 1915. i-ball be allowed to proceed on her voyage to any Gorman port. "2. No merchant vcs&ol which sailed from. An.vu~G.er.uiau. port Mlker . Ike JMfl

March, 1915, shall be allowed to proceed on her voyage with any goods on board laden at such port. " 3. Every merchant vessel which sailed from her port of departure after the Ist March, 1915, on a way to a port other than a German port, carrying goods ■with an enemy destination, or which are enemy property, may be required to discharge such goods in a British or Allied port." These clauses have important "features. They establish a blockade without proclaiming one ; and the effect of not proclaiming it keeps doubtful cases out of the Prize Court. The order gives perfect liberty to deal with all shipping passing to and from German ports. But as regai'ds Vessels going to neutral ports, the Order is only discretionary, and the interests of neutrals are fully safeguarded. The effect is to inflict on the enemy the maximum injury, combined with the minimum injury to neutral trade and neutral rights. Applying the clauses to. cotton, it is clear that a consignment to a German port would be stopped, whereas one to a neutral country might or might not be allowed to pass. A- Dutch consignment would probably be passed at once ■under the arrangement described. The freedom from arrest of a Scandinavian consignment t would depend . upon , a balance of interest, whether to allow the goods to go on and possibly to reach Germany would work more injury to the Allies f than the arrest of the cargo on suspicion. Apparently the Allies have pretty consistently allowed cotton to go through, or tnere would have been some eigns of a pinch in the enemy's supplies. There would have been, for instance, no talk of Germany selling her "surplus" cotton to Austria.

WHO SHALL BEAR THE BURDEN STATEMENT BY MR. MASSEY SOME INDICATION. To-day a deputation from the United Federation of Labour interviewed the Prime Minister and laid before him various matters arising out of the recent conference. The deputation was introduced by Mr. Walker, M.P. Mr J. JDowgray, President of the Federation,' and other members spoke on behalf of .the conference. The Hon. ' J. T. Paul said that "Ihe conference had discussed several matters arising out of the war. It had been recognised 'that there must be taxation imposed to relieve distress, provide pensions, and also ■to carry the war on to a successful, conclusion. The proposal that the incomes to be exempted from taxation be reduced from £300 a year to £260 was discussed, but it was believed the cost of collection would be greater than the amount to be obtained out of the additional £50. Mr. Paul also urged that no extra burden at this time of Heavier cost of living and restriction of employment should be placed upon the workers. The conference recognised the Government would not impose a war tax" before Parliament met, but they understood such a tax would be necessary. Mr. Massey : It must come ! Mr. Paul added that the conference hoped thai any necessary tax would be an increase in the Graduated Land Tax and on the tax on incomes. The Prime t Minister, replying, said that he had intended dealing with. the matter of registration of new unions two years ago, but the industrial trouble about that time, and now the war, had prevented him up to the present. But he would get Parliament to deal with it at the first opportunity. He did not think it would be possible this session to introduce the big Arbitration Bill to Parliament, but he could not state so definitely. In regard to the request that there should be a.' universal half* holiday, he said he believed the matter would "settle itself.' He had' observed what was taking place all over the Dominion. 'A TAX MUST COME. ' As to war taxation, there had been a few months ago an idea that the Government could impose taxation ; but the • Government could only do this at thfe request of_ Parliament. ■- "A war tax must come," said. Mr. Massey. "We must havo additional revenue." He had not thought it necessary last session to impose taxation; it was not good for a, country V> c£tty t taxation if it could be avoided. "Specially sudi taxation as the Government proposed to ask Parliament for. -Ir, Massey Went on to point out the alls the war pensions and other maters connected with defence were making, tnd would make, upon the country "We asked Parliament for authority to ■•aise ten millions," he said, "and w« had another two millions — twelve millions altogether, But I do not know whether we shall want more." It would have to ' be raised, no doubt, at a high rate of interest. He did not know what the rate would be; but with sinking fund of one per cent, it could not very well be less than five per cent. There had been a falling off in Customs and railway revenue. The war had affected the Customs — there was no doubfc about that. Perhaps it was owing !*>_ the scarcity of oversea ships. The railway shortage also was no doubt indirectly due to the same cause. At all events,' thougli he could not tell them at the moment what extra taxation would be required, it would be a large stun that was wanted, and Parliament would have to be asked for it. THE COST OF LIVING. How would it be raised? It would be very improper for him to give away the decisions of Cabinet before they were placed before the House. He would say they had had to bear in mind the present cost of living to the wage-earner. They must admit that the cost of living in this country and elsewhere in the Empire had increased. Mr. Paul had sug' gested an increase on both graduated land and income taxes. ''I can't say on j this point what we will do, but I can ' say that I think we shall be able to raise the money necessary without making the conditions of living harder to those who have a difficulty now in making both ends meet. That is as far as 1 can go now, But you will see what is in my mind, and in the minds of my colleagues." Mr. Massey added that it was a matter for congratulation that in the present crisis there were no industrial troubles in New Zealand. He would like to take this opportunity of saying it was a very great thing for the country, and he hoped it would continue— -at least until the war ended,