Germans Balking At Big Army Bill.

New York Times 100 years ago today, March 16, 1913:
Plan for immense Expenditure Fails to Find the Enthusiasm That Was Expected.
RULERS WON'T GIVE MUCH
Princes Are Not Very Wealthy — Fear That Some Form of Indirect Taxation Will Be Necessary.
By Marconi Transatlantic Wireless Telegraph to The New York Times.
    BERLIN, March 15.—A fortnight has passed since the rough outline of the Government's extraordinary military plans became known, but no more details are available. In a general way the estimate of 1,000,000,000 marks ($250,000,000) immediate expenditure and 200,000,000 marks for additional yearly running expenses is confirmed, but the Government as yet withholds the details, although it has contradicted a number of reports and surmises regarding the probable army increase.
    Signs are not lacking to show that a considerable proportion of Germans are beginning to ask themselves whether the proposed increases are justified and how the expense will be met. It is, of course, impossible to say accurately whether the majority of the nation is in favor of the plan or not, but there is no question that the plan fails to find the enthusiasm expected at first.
    If must be remembered, in the first place, that more than a third of all Germans are Socialists, and that the Socialists are bitterly opposed to further armaments. Certainly, also, a considerable part of the remaining two-thirds are lukewarm and incredulous of the promise that the 1,000,000,000 marks shall be raised by taxing the big estates. A feature of this taxation, it will be recalled, was to be the voluntary submission of the various ruling houses to taxation, and much was made of this. As a matter of fact, the sums thus obtainable will be but a drop in the bucket.
    A book just issued by Rudolf Martin, the well-known statistician, deals with the fortunes of the reigning houses and shows that they are inconsiderable, especially in relation to the incomes of the Princes.
    The Kaiser heads the list, with holdings estimated at 140,000,000 marks; the King of Saxony has only 25,000,000 marks; the King of Wurtemberg, 10,000,000; the Grand Duke of Hesse and the Duke of Saxe-Coburg und Gotha, each 5,000,000. The combined wealth of the twenty-two reigning houses of German States does not exceed 500,000,000 marks, of which less than 400,000,000 marks is available for taxation. At the rate of 4 per cent., the highest rate thus far suggested, no more than 16,000,000 marks could thus be realizable.
    The income of the twenty-two dynasties is about 50,000,000 marks, but no suggestion has been made that the princely incomes shall be taxed. Even at 5 per cent. they would yield only 2,000,000 marks.
    Disregarding altogether the question of the minimum estate to be taxed and what is the tax rate necessary to produce a billion marks, the assessment of fortunes means a work of tremendous difficulty. Only a small number of the German States have a general property tax, and hence no assessment rolls or other helps exist for laying the proposed armament tax or for collecting it.
    Apart from the question of the billion marks is the matter of raising the 200,000,000 marks for running expenses. The Federal Ministers, after a two-day meeting, gave out an unilluminating statement in which they declared that the conference had approved the Government's plan to increase the army and navy and the necessary appropriations. As to the 200,000,000 marks the statement was that it would be raised by a property tax and other taxes that might be necessary. What these other taxes may be is unknown, but the Socialists and others of the poorer classes fear more indirect taxes.
    The Government might possibly be able to pass an inheritance tax, but this would require the vote of the Socialists, which the Government is determined to avoid, and would undoubtedly also be followed by unpleasant political complications due to the wrath of the Conservatives.
    Although neither the German papers nor the anti-militarists have yet awakened to the fact, the seemingly innocent Railroad bill introduced in the Prussian House of Deputies on March 11 contains internal indications that the Prussian Government believes that the proposed increases for armaments do not go far enough. The bill calls for an appropriation of 542,000,000 marks for the railroads.