UNITED STATES.

Taranaki Daily News, 5 September 1918, Page 5

UNITED STATES.

DECLINE OF GERMAN POWER. ARMY MORALE AFFECTED. New York, Sept, 3. Mr. Cyril Brown, tie Berlin' correspondent of the New York World, who has lately been at Stockholm and Ims now returned to New York, interviewed, said: "Six months ago Germany was at the zenith of her fighting power; to-day she has definitely passed the zenith and her power shows a continuous downward tendency. The Germans aro now giving up hope of a victorious military decision or an early peace. For the first time in the war Germany has completely lost the initiative all along the line, and the German people know it. The army's morale has suffered relatively more than the people's morale. Only picked shock troops retain the old spirit, and the morale of the bulk of the army is affected by the fear of impending defeat. "Food conditions are no worse than six months ago, but will he inuch> more serious in the late winter and early spring."—Aus. N.Z. Cable Assoc.

CZECHO-SLOVAKE RECOGNISED. NF/W TAXATION PROPOSALS. . Received Sept, 4, 11.15 p.m. Washington, Sept. 3. The United 'States has recognised the Ueclio-Slovaks as a co-belligerent nation warring against Austria-Hungary. The new Revenue Bill, which is the greatest taxing measure in the history of the nation, will be introduced to Congress on Tuesday. It yields more than eight billion dollars, as compared with 3,914,000,000 last year. Taxes on aiitomoblles yield 123,000,000 dollars, liquors 1,137,000,000, and cigarettes 165,000,000. Taxes on incomes are as follow: On 2500 dollars income, 30 dollars tax; on 5000,180; on 10,000, 845; oh 50,000, 12,495; on 100.000, 9,000; on 1,000,000, 047,000.-Press Assoc. THE PRICE OF ~WHEAT. New York, Sept. 3. President Wilson has announced that the present price of wheat (2 dollars) would be applied to the 1919 crop, unless investigation disclosed the necessity of an increase. It was difficult to guarantee the price a year ahead, because if there should be peace, Europe would take advantage Of the huge stocks of grairi in Australia, India, and Argentina. Tbi9 would mean that the United States would face a loss of 500 million dollars through inability to sell her surplus for the high price , guaranteed.—Aus. N.Z. Cable Assoc.