10 MAY 1879, Page 2

The tariff battle began in the German Parliament on the

2nd inst. with a speech from Prince Bismarck, in which he frankly explained his views. He believed Free-trade to be a mistake, which all the world was abandoning except England, and which England would yet abandon. Land in Germany is far too heavily taxed, the State and Communal taxation together rang- ing from twenty to thirty per cent., this being truly an excise on corn, while foreign corn entered free. West Russia was thus en- riched at the expense of Germany. Moreover, the direct taxes throughout Prussia were too heavy, and he hoped, if he obtained his indirect taxes., to abolish the " Class- tax " and the income-tax, and transfer the house-tax and the land-tax to the communes. Should his plan succeed, the Empire would be self-supporting, and the contributory subsidies now demanded from each State—the sum, that is, paid in excess of the regular grant—might be abolished. The Tariff Bill is being strongly resisted by the Liberal leaders, including Herr Luker, and by the representatives of the indus- trial interests ; but Prince Bismarck has made some kind of ar- rangement with the Centre; and Herr Windthorst, the Ultramon- tane leader, has powerfully supported the Bill. It must therefore be carried, and every man in Germany will have to pay ten per cent. more at least for every morsel of bread he eats. That is the result of demanding indemnities.