CORRESPONDENCE
Lab QUESTION OF A LEVY ON CAPITAL IN SWITZERLAND.
[To the Editor of the SPECTATOR.] SIR,—The Swiss Constitution presents a happy combination of Representative Government and Direct Democracy, the purpose of which is the gradually exact incorporation of the people's will with the State. To secure this end, Switzerland has worked out successfully a machinery of cross reference as between the people and their mandatories. Reference to the people is binding upon representative public bodies in the cases therefor specified. In others, the people may force the reference by petition. And, for the remainder, intervention is allowed to the people by someone initiating legislation, over the heads of the regular xnandatories, for reference to the body politic of the nation. The key-note in the organization of Swiss political life is thus seen to be finality by reference. This is the Swiss statute of limitations. In some cases refer- ence to the people is as by a standing order of the House, in others reference is on petition, in others still legislation is
• moved from among the people, by petition also. In this last ease, the machinery is that described by James Bryce (Modern Democracies, vol. i., pages 418-419), which he calls Popular Constitutional Initiative.
This initiative is a call, emanating from at least 50,000 electors, that the Federal Executive shall report, the Federal legislatures shall debate and vote, upon the irresponsibly drafted amendment to the Constitution. The governing bodies may recommend adoption of the draft amendment thus legally brought in from the outside. They may recommend its rejection. They may recommend an alternative amend- ment of their own. An amendment to the Federal Constitution sprouting up in that way from among the people, examined by their legislators and referred to the vote of the nation for rejection or approval, becomes a valid embodiment in the Constitution on two conditions, which it must simultaneously obtain : the majority of the voters and the majority of the States (cantons). An amendment accepted by popular majority vote may yet be lost on the second point, which is decisive for the negative.
On Sunday, the 3rd of December, the Swiss people will adjudicate upon a Constitutional amendment coming before .them in the above defined form. The Government's report upon the proposed Bill is that the people are recommended to 'reject it, with no alternative. The present initiative may be compared particularly with two which the people ratified and which a majority of the cantons accepted. These successful initiatives proceeded from a craving of the people for a -legalizing of two prohibitions of the moral order, that of absinthe in 1908, and that of gaming tables in 1920. The publics good has been well served by those prohibitions, and there has been no reactionary movement to weaken them. The present initiative is of the same order. But it is not free from political bias or class feeling. Suspicion of being a genuine attempt at spoliation may be cast upon it. It has not been put forward by a self-denying group of well-meaning citizens, but comes from the headquarters of the Socialistic party, which has experienced in Switzerland an increase, though fax from being of such political importance as its recent growth in Great Britain. The party alleges that through one levy laid upon all forms of wealth, it aims at forming a Federal fund to be employed in procuring the social welfare of the people, by means which, in the language of political warfare, are styled State Socialism. It has to be remarked, in extenuation of this step taken by the" Direction" of the Socialistic party in Switzerland, as the name runs in the preamble of the Bill, that social reforms by State action are not so far advanced in Switzerland as in Great Britain. For instance, there is no State provision for the aged. The present proposal professes to proceed from a scnse of public duty to the desherites de la vie, a sense in itself very widely spread and highly esteemed in Switzerland, but in whose service the Socialists are now the first to come out before the people as an organizedparty. This goes to their credit for what it is worth. Whether it be meritorious worth or not need not be discussed at present. There is no doubt that, whatever support the initiative may command at the poll, they hope that the hardness of the times may bring it to them ; while the opponents, who will have to find the money if the Bill passes, are hoping to derive from the same economic calamity a voting power sufficient to bring about rejection.
The nineteen articles of the amendment, irrespective of their order, may be summarized as follows :- The Confederation lays one single levy upon wealth, payable in three yearly instalments, with a view to enable first itself, then the 22 cantons and every Swiss parish (political commune) to bring to fruition the people's claim to social welfare.
All wealth, whether privately owned or otherwise, comes within the levy.
The following are exempt, as already answering the purpose: (1) the State, the services of the State, the funds of the State or funds placed under its management, State monopolies, the Swiss national bank. (2) The communes, public corporations and official boards, ecclesiastic foundations and all establishments in the proportion of their wealth employed in serving public interests. (3) Any other corporation, establishment or insti- tute, for that portion of its wealth which is employed, or the returns upon which are employed, in the maintenance of public worship, public education and for the relief or social welfare of the poor, the sick, the old, the incapable, or serving any other purpose of general utility.
The liability rests severally and in every case on the totality of the wealth assets, debts being deducted. Then come a certain number of reservations in behoof of the taxpayers whose cumulative personal wealth would not run into five figures, reckoned in L's sterling. With regard to companies (Societes anonymes), &c., the paid-up capital is exempt, and so are their reserve funds, in so far as used to maintain insti- tutions or contribute to purposes of public utility or of general interest, provided the appropriation be effective.
For private persons, the levy ranges from 8 per cent. on the capital liable to 60 per cent. when exceeding three million francs (£120,000). The wealth of married people is totalized.
For corporations there is one uniform levy of ten per cent. Payment in approved public securities may be accepted, or requested.
Then come clauses apportioning the proceeds of the levy as between the Federal State (60 per cent.), the cantons (20 per cent.), and the communes (20 per cent.).
The penal clauses are of the most stringent character, with State registration of every form and instrument of wealth. The validity of this Constitutional amendment expires with the completion of the levy.
We shall know by Sunday evening next what the majority of the Swiss people think of this imposition.-1 am, Sir, &c.,
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