Evening star. [volume] (Washington, D.C.) 1854-1972, 1918-12-12
LLOYD GEORGES
! HUN DEBTF|GURES
STIR DISCUSSION
Mr.. Daniels Declares, in
Speech, That u. S. Seeks
!: No Indemnity.
IS BELIEVED TO VOICE
PRESIDENTS SENTIMENTS
o.
Taxable Income Of Germany to De-
. pend on Territorial Ad-
III justments.

q. ju'tnsnt'.
!.
Lloyd Georges statement Of yester-
day that Germany should pay to the
utmost limit of her capacity" pub
lished simultaneously today with the
address of Secretary Daniels in Bal
tfmore when he stated that American
representatives at the peace confer
eRce task nothing in the way of ter
ritory or indemnity" aroused consid-
etable interest in Washington today.
!. Allies Staggering Bill.
The allied war bill against Germany.
according to Lloyd George. is $780,
900 900, 900, a staggering sum. which
the prime minister stated the whole
wealth Of Germany would not be
enough to meet. He then added his
statement that Germany must pay to
tie limit of her capacity.
While the war bill of the allies is
ascertainable with approximate &C
curacy. the ability of Germany in the
matter of payment Is question OF
wide diversity of option. Financial
experts In Washington today pointed
out that the taxable income Of the
enemy is impossible to ascertain at
tbis time. especially as 1t will depend
to marked extent upon the territorial
Establishments made at the peace con-
ference.
THUS. If lands which include coal
mines are taken over by the allies and
detached from Germany. Germany's
taxable income will be reduced by the
amount of the profits accruing from
their output. And 1T was stated that
this question of taxable income was
chiefly invoked, rather than the actual
wealth of Germany.
AS one official pointed out today.
though the subject of national taxa
ton is extremely complicated in its
application. the principle involved Is
ntuch the same as that of an individ-
Gal who contracts a debt. Such an
security. but If the interest on the
loan exceeded his income from his
property the alternative he faced
would be the sacrifice of such portion
o; his holdings as would be necessary
to meet the interest payments.
Nice Calculation Necessary.
In the case of nation there Is this
additional factor-that interest on
have to be collected by taxation
Nice calculation is necessary If such
taxation does not reach the point
where 1t discourages industry to the
against which the taxes must be
levied.
Even in the United States. which
has not borne a financial burden COM
PARABLE with the allied powers some
industries must now pay as high as
40 per cent of their profits back to
the government, and business men
Eiere have sounded warnings that such
tExation is beyond the danger point
ssnd tends to discourage industrial
development.
$. Germany's New Problems.
Germany. before the war. had de-
vAloped her resources to an extent which
leaves little hope for further develop
nent which might increase her taxable
INCOME. as it might be the case in a
,nunser nation with the wealth OF re-
sources such as exist in the United
States. Now she faces problems of
rehabilitation. and because of that
faaior and the territorial adjustment
referred to economists say that there
- no oasis now aNdllaple upon winch
hAr. taxable income may be computed.
Tails Is a question which will have to
await settlement by the peace con-
ference.
, Lloyd Georges Figures.
Lloyd Georges total indemnity
AEure apparently Is based on calcu-
iation of war expenditures of the
associated nations. According to one
,taf;
distributed among the nations as
follows:
,Sr-st Britain .........-.. al .oOO. 600 0Oc
tnft-a states -....-....... 5000, COZ. 00C
ErsnSe -...-.......-.-.----.. 26,SoO, on, 0OC
Ens''a OBSERVATION-DISCLOSURES. y .aoO. COZ. GOV
iEAi .....-...... S.ouO, OOo OOt
ae!girr1. etc. -........... 1.1oO, 600 .OOC
In the case Of France the figure
given includes return of the $1,000
600. 1000 indemnity which Germany lev
led; on France after the Franco-Prus-
sian war. plus interest. and $4,000
0oe,a00 for reparation for damages.
The Belgium figure also includes an
estimate of the amount needed for
Ieparation.
Discussion of indemnities in recent
months has been somewhat confusing
because of the use of the word to
mean payment for actual loss. on the
one hand. and also to mean payment
of punitive indemnities on the other.
q. s. Stand On Punitive Indemnity,
General opinion is that the United
States. on her own account. certainly
will not levy any punitive indem-
nifty" upon Germany. Technically she
already has indicated that she would
levy indemnity to the extent Of holding
Germany to strict account for loss Of
cargoes belonging to American citi-
GEMS which were lost by U-boat oper-
attonA, and also Tor the destruction or
loss Of American property in Ger
many.
Whether this country viii claim