THE COLONIST. MONDAY, JULY 24, 1916. WAR TAXATION IN FRANCE.

Colonist, Volume LVII, Issue 14145, 24 July 1916, Page 4

THE COLONIST. MONDAY, JULY 24, 1916. WAR TAXATION IN FRANCE.

Tn these days when the ingenuity of the statesmen of a large portion of the world is occupied in devising means of extracting ever larger sums from the taxpayers, the expose dcs motifs prepared by M. Ribot, the French Minister of Finance, in connection with his demand last May/for a vote of £315,(554,080 for France's war expenditure for the third quarter of 1915 is of interest. He proposed increases of the majority of existing taxes, and at the same time to suppress entirely the privilege "dcs bouillers de cru," which is the right enjoyed by farmers of private distilling under certain conditions. This right is at the root of the drunkenness prevalent in Normandy and Brittany. M. Ribot draws his increased; revenue from a variety of sources, from which it is estimated that £36,280,000 will be obtainable. Of this £11,000,000 will be obtained by doubling the State share of land taxation licenses, and £2,400,000 by raising the rate of general income-tax from 2 to 5 per cent. The doubling of the taxes on niines, carriages, horses, billiard tables, clubs, and a number of other similar taxes is estimated to yield £1,080,000. Dogs will be called upon to provide £900,000. Income-tax on stocks and shares, to be raised from 4 to 5 per cent., will yield £1,520,000. The consumption tax on alcohol is to be increased to £16 the hectolitre (about 22 gallons), and the price of the State monopoly on tobacco will be raised. The Minister's statement shows that the amounts of credits demanded since the beginning of the war total £2,180,000,000.' . A portion of the expose dcs motifs dealing with the question of exchange and the assistance given by the British Government is of especial interest. "Great Britain on her side," said M. Ribot, "does not forget her reciprocal engagement for the solidarity of financial, as well as military, effort. The arrangements which we made with the British Treasury, as well as that recently concluded between the Bank of England and the Banque de France, are to the advantage of both countries, since, while England has opened for us the credits we required in order to meet our payments in England, abroad we give her very effective assistance, by gold advances repayable after the war, in maintaining the London exchange on other countries, and particularly on the United States, high enough to prevent any, stoppage in gold payments to the Bank of England. This solidarity of action and of sacrifices between the Powers which are fighting together for the freedom of civilisation and the unshakeable resolution of ourselves and our Allies not to lay down arms until we have ensured a peace which will protect us against further aggressions are the certain pledge of final victory. No sacrifice will count if we arrive at the goal France herself fixed." M. Ribot's proposals for the first time since the war began impose upon France special war taxation. The reasons which have hitherto prevented recourse to new have, now largely disappeared, and, as the expose dcs motifs points out, constant borrowing creates heavy burdens, about the meeting of which it is- necessary to think even before peace has been attained. In his new taxes M. Ribot has been at pains to hold the balance equally between the two great classes of taxpayers. The new taxes will be applied with care, and a very large margin has been left in the estimates for the concessions which £Fie state of war and the invasion of French territory will, demand. .