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The House of Liechtenstein, European landholders since the 12th Century, came into possession of part of Liechtenstein in 1699, the remainder in 1712. It was constituted a principality in 1719 by diploma from the Holy Roman Emperor Charles VI. Archdukes of the House of Habsburg often turned to the House of Liechtenstein for their brides. Austrian Kaiser Franz Josef once named Liechtenstein's Prince Franz Paul, who abdicated last week, as Austro-Hungarian Ambassador to the Imperial Russian court. The art collection of hoary Prince Franz Paul is one of Europe's finest.
If Liechtenstein now becomes part of Greater Germany the inhabitants will almost certainly lose their most cherished liberty—freedom from taxation. The ruling Prince, having long footed the Government bills himself, discovered in 1926 a way to relieve the strain on his own diminished income. Watching the rise of confiscatory taxes on corporations, wealthy citizens in Europe and the U. S., he smartly invited foreign corporations and private citizens to incorporate in his state and pay minimum taxes. Since then these foreigner-paid taxes, small as they are, have paid some 45% of the nation's expenses. The Liechtenstein family, owning virtually all the nation's wealth, graciously pays the rest.