First of all he proposed certain devices for the covering of permanent expenditure. Then he moved an increase in the assessment of matricular contributions paid by the federated States, on whose shoulders a fresh share of the burden was thus thrown. Finally, to redeem the promise made to the Reichstag in 1912 with regard to a property-tax, Herr Kühn suggested imposing a tax on increments of wealth and capital in those federated States which should not themselves have introduced such a tax by 1916, and whose resources were not enough to pay the higher rate of matricular contributions that was now demanded. In order to meet the non-recurring expenses, the Government bill—this is its truly original feature—proposed an extraordinary tax on property and income, to be paid for the next two years. This _Wehrbeitrag_ (Defence Contribution) was really a special war levy, imposed on capitalists in the midst of peace, when the political sky of Germany was not in any way overcast. It was a tax on the patriotism of the well-to-do classes, an urgent appeal to national sentiment. That the response would be enthusiastic the Government did not doubt for a moment. The assessment of property began at the very low minimum of £500, that of income at the very high minimum of £2,500. In the debate on the first reading the Finance Minister’s scheme was coldly received by the Liberal elements. It soon became clear that the vote for financial cover, which the Chancellor wished to obtain by the beginning of July at the latest, would not be passed unless he resigned himself to accepting drastic amendments. Herr von Bethmann-Hollweg, anxious to push the matter through as quickly as possible, acknowledged that the Government proposals might be modified. The Budget Committee went to work with a vengeance. For the _Wehrbeitrag_, it raised the minimum of taxable property to £2,500 with an income of over £100, and, making the tax progressive, it taxed incomes of over £250, provided they exceeded by £50 a sum representing five per cent. of the taxpayer’s capital. For the valuation of real estate it adhered to the principle of fictitious capitalization, multiplying the incomes by 25 instead of 20, a co-efficient proposed by the Government and considered too favourable to the landed proprietors. The Princes were subjected to the extraordinary tax in the same way as private citizens; the assurance given by princely families, that they would contribute of their own free will, was not regarded as sufficient. On the other hand, against the advice of the Liberals, estates held in mortmain were exempted. The tax was to be collected in three instalments: the first, one month after the preliminary assessment, _i.e._ on December 31, 1913, the second in 1915, and the third on February 15, 1916.