DIPLOMATIC CORRESPONDENCE AND FOREIGN RELATIONS. 



237 



nite in its intended duration, was estimated at 

 10,000 ; and that at least three-quarters of 

 these had become citizens by naturalization. 

 Affart from this estimate, and with no neces- 

 sary relation to it, the investigation disclosed 

 that 15,000 Americans arrived every year in 

 Germany and 13,000 departed therefrom in 

 the same year, leaving 2,000, of which 1,500 

 had a fixed purpose to remain for only a brief 

 time, and 500 each year remained to be added 

 to those already there with no definite plan of 

 return. The 10,000 Americans residing per- 

 manently in Germany, or rather with no defi- 

 nite plan of return to the United States, are 

 divisible into three classes one, those residing 

 there for the purpose of education ; another, 

 those residing there for the purpose of busi- 

 ness ; and a third, those guilty of evasive nat- 

 uralization in the United States, which is a 

 naturalization with no purpose of living in the 

 United States, but of using the certificate of 

 naturalization to avoid disagreeable obliga- 

 tions, military or other, in the country of their 

 birth and residence. In regard to the first 

 class, Mr. Bancroft Davis says : 



"Whole families live here for years, drawing their 

 means of support from American investments, edu- 

 cating their children in German ideas and spending 

 here the income which otherwise would go to enrich 

 the United States. The evil is not without great 

 counterbalancing advantages ; but whether the pre- 

 ponderating effect be for good or for ill it is not prob- 

 able that the fact itself will be changed until America 

 shall offer as cheap education, as reasonable cost of 

 living, and as agreeable amusements to idlers and 

 pleasure-seekers, as Europe affords. Manjr families 

 come here solely for the purpose of educating their 

 children. Dresden, Munich, Heidelberg, and Stutt- 

 gart, have been favorite centres for those who come 

 with such objects. There are quite large colonies 

 of Americans in each of these towns, probably more 

 native-born citizens than anywhere else in Germany, 

 but the native-born Americans form only a compar- 

 atively small portion of the citizens of the United 

 States permanently or indefinitely residing in Ger- 

 many. 



Of the third class, holding evasive certifi- 

 cates of naturalization, Mr. Davis remarks : 



There is still another class of naturalized citizens 

 residing, in Germany, not so numerous as the others, 

 but by no means insignificant, who have sought 

 American citizenship solely for the purpose of avoid- 

 ing duties of citizenship here, but, having acquired 

 it, have returned here without any intention of re- 

 siding again in America or of performing any duties 

 of citizenship there. The position of the German 

 emigrant naturalized in good faith who returns here 

 and who stays here temporarily, but without an in- 

 tent to remain permanently, is materially affected to 

 his disadvantage by the odium caused by such cases 

 as I have described. No effort will be spared to 

 make this legation here a complete protection to 

 every naturalized German citizen who has remained 

 temporarily in Germany with the intent to return to 

 America. 



Secretary Fish, in reply, says : 



As a general rule the power to impose taxes is an 

 attribute of sovereignty, and where the person or the 

 property in question is a proper subject of taxation, 

 the species of tax and the amount which, should be 

 collected mav fairly be left to the state or govern- 

 ment exercising this power. 



By the act of March 2, 1867, it was provided 



That there shall be levied, collected, and paid annually upon 

 the gains, profits, and income of every person residing in the 

 United States, or of any citizen of the United States residing 

 abroad, whether derived from any kind of property, rents, 

 interest, dividends, or salaries, or from any profession, trade, 

 employment, or vocation carried on in the United States or 

 elsewhere, or from any other source whatever, a tax, etc. 



Such provision does not materially differ from the 

 corresponding provision of the previous acts on the 

 same subject. It applies in terms to all persons, 

 aliens as well as citizens residing in the United 

 States, and to all citizens residing beyond the limits 

 of the United States. 



So far as the subjects of taxation are concerned, 

 the income-tax referred to in your correspondence 

 does not appear to differ from the income-tax im- 

 posed by this Government. 



On the ground, therefore, that the parties com- 

 plaining in these cases are all residents of Germany, 

 and so long as the tax is uniform in its operation 

 and can fairly be deemed a tax and not a confisca- 

 tion or unfair imposition, it is not believed that any 

 successful or consistent representation can be made 

 to the German Government in their behalf. 



It is true that in some cases a party may be liable 

 to double taxation, but such instances are excep- 

 tional, and this fact cannot alter the rule. No in- 

 come-tax, as such, is at present collected in this 

 country. 



Some of these statements complain of excessive 

 taxation, even under the provisions of the German 

 laws, but such matters would seem more properly 

 to be questions for submission to the German courts. 



The next point of interest relates to military 

 service in Germany, by all persons native-born 

 who come to the United States, become nat- 

 uralized, and return with the certificate. The 

 correspondence of Mr. Davis contains valuable 

 information about the military law of the Ger- 

 man Empire. From this it appears that every 

 German is liable to serve in the army : 1. For 

 three years from the commencement of his 

 twentieth year, in active service; 2. For four 

 years more as a reserve, being still on the 

 army-roll and regarded as in active service, 

 and liable at any moment to be called into the 

 same; and, 3. For the further term of five 

 years, as a member. of the Landwehr. The 

 critical inquiry heretofore has been, At what 

 point, or by reason of what act, does this mil- 

 itary duty begin? Can the German, or any 

 one liable, wait for a notice from the Govern- 

 ment ? Mr. Davis says that the German Gov- 

 ernment declares that no notice is necessary, 

 but the person must report himself for military 

 service on the prescribed day after he attains 

 the requisite age ; and if he does not so report 

 himself, he renders himself liable to be pro- 

 ceeded against for failure to do so. But this 

 is not all : under the laws of Germany there 

 is provision made for proceedings against the 

 defaulting person, in his absence, par contu- 

 mace; if the proceedings are regular they may 

 be carried to final judgment, and the defend- 

 ant condemned by fine or imprisonment in his 

 absence, and if he has property in Germany 

 the fine may be collected out of it. The court 

 which imposes such fine and sentences to such 

 imprisonment is partly military and partly 

 civil, and by this tribunal a plea of naturaliza- 

 tion by the United States, even when estab- 



