AMERICAN TAXATION

Evening Star, Issue 23863, 18 April 1941, Page 6

AMERICAN TAXATION

GREATEST IN U.S. HISTORY 3i BILLION DOLLARS ADDED WASHINGTON, April 17. (Received April 18, at 11.80 a.in.) Air Morgenthau announced to-day the largest taxation programme in American history. The Administration and the Democratic and Republican Congressional leaders unanimously agreed to ask throe and a-half billion dollars in new taxes for the ensuing year. This is the first time that all parties have been invited to confer on tax proposals. The figure reached, on the basis of taxation covers two-thirds of the expenditure, and implies borrowing one-third. The total year’s expenditure is estimated at 19 billion dollars. Existing taxation will produce nine and a-quarter billions.

PROGRESSIVE INFLATION

FRANCE'S FINANCIAL POSITION OCCUPATION COSTS A HEAVY BURDEN (British Official Wireless.) RUGBY, April 16. An analysis of the latest official returns for the Bank of Franco made by the newspaper ‘ Frankfurter Zeitung ’ throws light on the progressive inflation in France and the reasons for the economic situation becoming worse. On the side of assets from March, 1940, when tho figure for advances to the Government was 80,000,000.000 francs, there was an increase to 46,000,000,000 in June and to 146,000,000,000 in December. Of the last sum occupation costs amounted to 72,000,000,000. On tho side of liabilities—the note circulation rose over the same period- from 156,000,000,000 to 174,000,000,000 in June and to 218,(JBO,000,000 in December—there was also a debt of 41,0*00,000,000 in December. The total monetary circulation—French notes, occupation mark, notes and coins—rose m December to 288,000,000,000. Gold assets throughout tills period are given as 85.000. Since then, it is pointed out in Lon-> don, the note circulation must have increased, so that by tho middle of March the monetary circulation must have risen to 310,000,000,000 francs since advances in respect to occupation costs have risen to over 90,000,000,000. Tho conclusion to be drawn is that in 12 months to the middle of March last the monetary circulation rose by some 14.000. francs, that is, by over 80 per cent. About two-thirds of this inflation was due to German-levied costs of occupation and one-third to Government expenditure and the failure t of normal revenue since the collapse' of France. ,

For the second quarter of 1941 the Vichy Government’s proposed ordinary Budget has been reduced to 22,732,000,000 francs, and great play is made of the fact that this was scaled down by 1,500,000,000. The amount payable to the Germans for this quarter as the cost of occupation is 36,400,000,000 francs. Thus the Budget for all Franco is only 250,000,000 francs a day compared with 400,000,000 a day as the cost of occupation. Assuming, therefore, that there are 1,000,000 German troops in France, Vichy has to pay out 400 francs a day per German, compared to, the budgetary allowance of only six francs per day per French civilian. The sum of 400 francs is far in excess of the actual cost, one reliable estimate being 125 francs. Credit over and above without doubt goes to securing illegal German control of France’s industry—at the cost of France.

ROVING SUPER-ENVOYS

GERMAN APPOINTMENTS LONDON, April 17. The ‘ Daily News ’ states that the German Foreign Office lias decided to appoint a roving super-envoy to every continent in both hemispheres. Dr Kurt Jleith has already arrived in South America, and Herr Heinrich Stahmer has been allotted Asia. It is said that the Foreign Office has withheld the appointments to North America, Africa, and the Antipodes, “ pending a few adjustments.”

DUKE OF WINDSOR

APPEAL FOR RAF. VOLUNTEERS NASSAU, April 17. The Duke of Windsor broadcast .an appeal for further volunteers for the R.A.F. from the 15ahamas local station to-night. It is reported that the Duke intends to visit Palm Beach, Florida, during the week-end to confer with his financial adviser, Sir Edward Peacock, a member of the British Purchasing Commission.