By P. Maslov.
[From Russkia Vedomosti, No. 207, Sept. 10, (23,) 1914.]
For reasons beyond my control,[2] I am unable as a member of the Free
Economic Association[3] to participate in the discussion of the methods
of raising money by taxation for the war expenditures. The political
group to which I belong may not give full expression to its views. What
follows is my personal opinion shared by several men.
[Footnote 2: Mr. Maslov, who is a well-known Russian economist, was
arrested shortly after the beginning of the war on suspicion of not
being loyal enough.--Translator.]
[Footnote 3: The Russian Free Economic Association is one of the oldest
scientific bodies of Russia. It considers at its meetings proposed
taxation and various questions of economic policy. It is but natural
that the proposed new taxes should have provoked ardent discussion in
this association. How the war taxes should be levied (direct versus
indirect taxation) and who shall be the taxpayers, were among the chief
topics discussed at its recent meetings.--Translator.]
The attack by Germany is not only a menace to the democracy of France
and Belgium, it not only threatens a political dictatorship by the
Prussian nobility over Europe, but is a danger of far greater magnitude
than these. For the first time Europe is in peril of having her
commercial treaties determined by the sword. Up to this time even the
smaller countries have been saved from such a violent course, and
European capital has been obliged to restrict itself to the oppression
of Asiatic countries. Now for the first time--in case of a German
victory--Europe stands in danger of having her commercial arrangements
forced upon her by an iron hand, and is threatened with being turned
into a German colony. For in the case of a German victory no power in
Europe will be able to withstand Germany. And Germany will deal without
ceremony even with Austria.
On the other hand, in case of German defeat, the foremost capitalistic
country, Great Britain, may not menace Europe for two reasons: First,
Great Britain holds to the policy of free trade; second--and this is the
main point--she cannot support with armed force her policy as against
her allies.
In the meantime the danger indicated above threatens economically
backward Russia; her agricultural population may be ruined, her
industries may be destroyed. An unprecedented situation has arisen for
Russia. All the social classes of the empire are deeply interested in
the repulse of the armies of the Kaiser. The working class is just as
much interested in the existence of Russian industries as are the
employers. The peasants are in no lesser degree interested in the
development of agriculture; the killing of industries and agriculture
like that committed by England in Ireland centuries ago is a gloomy
prospect for all classes of society. If France and Belgium are
threatened with a political oppression then Russia is threatened with an
even more terrible economic subjugation. Such is the situation.
The poorest classes of the people are taking part in this fight with
what they have, with their blood. It is but natural that they should
expect that the material burdens of the war will fall not upon their
shoulders, but upon big business.
It seems to me that in discussing the sinews of war the Free Economic
Association has not considered fully the psychology of the masses. And
yet this psychology has a decisive influence upon the war, and is bound
to be unfavorable to the war, if the masses of the people feel that the
financial burdens of the war are to be placed upon the weakest
shoulders.
Considering that at the present moment our supreme duty is to repel the
German invasion at all costs, I think that this duty will be better
performed by putting the economic burden of the war upon the shoulders
of the well-to-do classes, for we have to reckon not only with the
taxpaying capacity of the mass of the people, but also with their
psychology.
I regard it as a great mistake that the important problem of the most
economical methods of spending money raised by taxation has not been
considered.