Part 20 (1/2)
Against these debts may be placed a considerable property in domains, forests, mines, and railways. The stock capital of the State railways reached, on March 31, 1908, in millions of marks, in--
Marks, Prussia (Hesse) 9,888 Bavaria 1,694 Saxony 1,035 Wurtemburg 685 Baden 727 Alsace-Lorraine 724
--a grand total, including the smaller State systems, of 15,062 milliard marks. This sum has since risen considerably, and reached at the end of 1911 for Prussia alone 11,050 milliards. Nevertheless, the national debts signify a very heavy burden, which works the more disadvantageously because these debts are almost all contracted in the country, and presses the more heavily because the communes are also often greatly in debt.
The debt of the Prussian towns and country communes of 10,000 inhabitants and upwards alone amounts to 3,000 million marks, in the whole Empire to some 5,000 million marks. This means that interest yearly has to be paid to the value of 150 million marks, so that many communes, especially in the east and in the western industrial regions, are compelled to raise additional taxation to the extent of 200, 300, or even 400 per cent. The taxes also are not at all equally distributed according to capacity to pay them. The main burden rests on the middle cla.s.s; the large fortunes are much less drawn upon. Some sources of wealth are not touched by taxation, as, for example, the speculative income not obtained by carrying on any business, but by speculations on the Stock Exchange, which cannot be taxed until it is converted into property. Nevertheless, the German nation is quite in a position to pay for the military preparations, which it certainly requires for the protection and the fulfilment of its duties in policy and civilization, so soon as appropriate and comprehensive measures are taken and the opposing parties can resolve to sacrifice scruples as to principles on the altar of patriotism.
The dispute about the so-called Imperial Finance reform has shown how party interests and selfishness rule the national representation; it was not pleasant to see how each tried to s.h.i.+ft the burden to his neighbour's shoulders in order to protect himself against financial sacrifices. It must be supposed, therefore, that similar efforts will be made in the future, and that fact must be reckoned with. But a considerable and rapid rise of the Imperial revenue is required if we wish to remain equal to the situation and not to abandon the future of our country without a blow.
Under these conditions I see no other effectual measure but the speedy introduction of the _Reichserbrecht_ (Imperial right of succession), in order to satisfy the urgent necessity. This source of revenue would oppress no cla.s.s in particular, but would hit all alike, and would furnish the requisite means both to complete our armament and to diminish our burden of debt.
If the collateral relations, with exception of brothers and sisters, depended on mention in the will for any claim--that is to say, if they could only inherit when a testimentary disposition existed in their favour--and if, in absence of such disposition, the State stepped in as heir, a yearly revenue of 500 millions, according to a calculation based on official material, could be counted upon. This is not the place to examine this calculation more closely. Even if it is put at too high a figure, which I doubt, yet the yield of such a tax would be very large under any circ.u.mstances.
Since this, like every tax on an inheritance, is a tax on capital--that is to say, it is directly derived from invested capital--it is in the nature of things that the proceeds should be devoted in the first instance to the improvement of the financial situation, especially to paying off debts. Otherwise there would be the danger of acting like a private gentleman who lives on his capital. This idea is also to be recommended because the proceeds of the tax are not constant, but liable to fluctuations. It would be advisable to devote the proceeds princ.i.p.ally in this way, and to allow a part to go towards extinguis.h.i.+ng the debt of the communes, whose financial soundness is extremely important. This fundamental standpoint does not exclude the possibility that in a national crisis the tax may be exceptionally applied to other important purposes, as for example to the completion of our armaments on land and sea.
There are two objections--one economic, the other ethical--which may be urged against this right of the State or the Empire to inherit. It is argued that the proceeds of the tax were drawn from the national wealth, that the State would grow richer, the people poorer, and that in course of time capital would be united in the hand of the State, that the independent investor would be replaced by the official, and thus the ideal of Socialism would be realized. Secondly, the requirement that relations, in order to inherit, must be specially mentioned in the will, is thought to be a menace to the coherence of the family. ”According to our prevailing law, the man who wishes to deprive his family of his fortune must do some positive act. He must make a will, in which he bequeathes the property to third persons, charitable inst.i.tutions, or to any other object. It is thus brought before his mind that his natural heirs are his relations, his kin, and that he must make a will if he wishes to exclude his legal heirs. It is impressed upon him that he is interfering by testamentary disposition in the natural course of things, that he is wilfully altering it. The Imperial right of succession is based on the idea that the community stands nearer to the individual than his family. This is in its inmost significance a socialistic trait.
The socialistic State, which deals with a society made up of atoms, in which every individual is freed from the bonds of family, while all are alike bound by a uniform socialistic tie, might put forward a claim of this sort.”[F]
[Footnote F: Bolko v. Katte, in the _Kreuzzeitung_ of November 18, 1910.]
Both objections are unconvincing.
So long as the State uses the proceeds of the inheritances in order to liquidate debts and other outgoings, which would have to be met otherwise, the devolution of such inheritances on the State is directly beneficial to all members of the State, because they have to pay less taxes. Legislation could easily prevent any acc.u.mulation of capital in the hands of the State, since, if such results followed, this right of succession might be restricted, or the dreaded socialization of the State be prevented in other ways. The science of finance could unquestionably arrange that. There is no necessity to push the scheme to its extreme logical conclusion.
The so-called ethical objections are still less tenable. If a true sense of family ties exists, the owner of property will not fail to make a will, which is an extremely simple process under the present law. If such ties are weak, they are a.s.suredly not strengthened by the right of certain next of kin to be the heirs of a man from whom they kept aloof in life. Indeed, the Crown's right of inheritance would produce probably the result that more wills were made, and thus the sense of family ties would actually be strengthened. The ”primitive German sense of law,”
which finds expression in the present form of the law of succession, and is summed up in the notion that the family is nearer to the individual than the State, has so far borne the most mischievous results. It is the root from which the disruption of Germany, the particularism and the defective patriotism of our nation, have grown up. It is well that in the coming generation some check on this movement should be found, and that the significance of the State for the individual, no less than for the family, should be thoroughly understood.
These more or less theoretical objections are certainly not weighty enough to negative a proposal like that of introducing this Imperial right of succession if the national danger demands direct and rapid help and the whole future of Germany is at stake.
If, therefore, no other proposals are forthcoming by which an equally large revenue can be obtained; the immediate reintroduction of such a law of succession appears a necessity, and will greatly benefit our sorely-pressed country. Help is urgently needed, and there would be good prospects of such law being pa.s.sed in the Reichstag if the Government does not disguise the true state of the political position.
Political preparations are not less essential than financial. We see that all the nations of the world are busily securing themselves against the attack of more powerful opponents by alliances or _ententes_, and are winning allies in order to carry out their own objects. Efforts are also often made to stir up ill-feeling between the other States, so as to have a free hand for private schemes. This is the policy on which England has built up her power in Europe, in order to continue her world policy undisturbed. She cannot be justly blamed for this; for even if she has acted with complete disregard of political morality, she has built up a mighty Empire, which is the object of all policy, and has secured to the English people the possibility of the most ambitious careers. We must not deceive ourselves as to the principles of this English policy. We must realize to ourselves that it is guided exclusively by unscrupulous selfishness, that it shrinks from no means of accomplis.h.i.+ng its aims, and thus shows admirable diplomatic skill.
There must be no self-deception on the point that political arrangements have only a qualified value, that they are always concluded with a tacit reservation. Every treaty of alliance presupposes the _rebus sic stantibus_; for since it must satisfy the interests of each contracting party, it clearly can only hold as long as those interests are really benefited. This is a political principle that cannot be disputed.
Nothing can compel a State to act counter to its own interests, on which those of its citizens depend. This consideration, however, imposes on the honest State the obligation of acting with the utmost caution when concluding a political arrangement and defining its limits in time, so as to avoid being forced into a breach of its word. Conditions may arise which are more powerful than the most honourable intentions. The country's own interests--considered, of course, in the highest ethical sense--must then turn the scale. ”Frederick the Great was all his life long charged with treachery, because no treaty or alliance could ever induce him to renounce the right of free self-determination.”[A]
The great statesman, therefore, will conclude political _ententes_ or alliances, on whose continuance he wishes to be able to reckon, only if he is convinced that each of the contracting parties will find such an arrangement to his true and unqualified advantage. Such an alliance is, as I have shown in another place, the Austro-German. The two States, from the military no less than from the political aspect, are in the happiest way complements of each other. The German theatre of war in the east will be protected by Austria from any attempt to turn our flank on the south, while we can guard the northern frontier of Austria and outflank any Russian attack on Galicia.
Alliances in which each contracting party has different interests will never hold good under all conditions, and therefore cannot represent a permanent political system.
”There is no alliance or agreement in the world that can be regarded as effective if it is not fastened by the bond of the common and reciprocal interests; if in any treaty the advantage is all on one side and the other gets nothing, this disproportion destroys the obligation.” These are the words of Frederick the Great, our foremost political teacher _pace_ Bismarck.
We must not be blinded in politics by personal wishes and hopes, but must look things calmly in the face, and try to forecast the probable att.i.tude of the other States by reference to their own interests.
Bismarck tells us that ”Illusions are the greatest danger to the diplomatist. He must take for granted that the other, like himself, seeks nothing but his own advantage.” It will prove waste labour to attempt to force a great State by diplomatic arrangements to actions or an att.i.tude which oppose its real interests. When a crisis arises, the weight of these interests will irresistibly turn the scale.
When Napoleon III. planned war against Prussia, he tried to effect an alliance with Austria and Italy, and Archduke Albert was actually in Paris to conclude the military negotiations.[B] These probably were going on, as the French General Lebrun was in Vienna on the same errand.
Both countries left France in the lurch so soon as the first Prussian flag flew victoriously on the heights of the Geisberg. A statesman less bia.s.sed than Napoleon would have foreseen this, since neither Austria nor Italy had sufficient interests at stake to meddle in such a war under unfavourable conditions.
[Footnote B: When Colonel Stoffel, the well-known French Military Attache in Berlin, returned to Paris, and was received by the Emperor, and pointed out the danger of the position and the probable perfection of Prussia's war preparations, the Emperor declared that he was better informed. He proceeded to take from his desk a memoir on the conditions of the Prussian army apparently sent to him by Archduke Albert, which came to quite different conclusions. The Emperor had made the facts therein stated the basis of his political and military calculations. (Communications of Colonel Stoffel to the former Minister of War, v. Verdy, who put them at the service of the author.)]