Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-07-10
mo WAR FUNDS"
HUN LEADERS TOLD
Erzberger Declares Empires
Income Must Go Up
900 Per Cent.
TAX BURDEN ON CAPITAL

quickly return to peace-time finan-
cial system, said Erzberger. With
other things. the payment of grants
to men who are unemployed will be
reduced, it was indicated during his
address.
1.-The empires needs must be divided
henceforth between home needs and
indemnities." he said. 1.-The years
expenditures confronting us will
amount to about 1880, 000, 900 marks
Will Tread Hard Path.
II am firmly resolved to tread the
hard path Of economy. and therefore
have given out the watchword that
from October 1. 1919, there shall be
no more items not detailed. and there
shall be no more war funds. The war
finance system shall cease, and a
regular budget system must be re-
established. The first guiding princi-
pie IL that there must be no more un-
productive expenditures. Therefore
a gradual abolition of non-employ-
ment grants must be faced. How are
the full requirements for the en-
pire new states and communeS,
which may be estimated at some 49,,
600. 0o0, 600 marks. to be covered?'
Big Revenue From Taxes.
After reciting the returns to the
empire from taxation measures prior
to and during the war and estimating
the revenue to be derived from new
tax bills, Herr Erzberger said:
There still remains a sum of more
than ten billion marks to be covered"
Drafting Two Tax Bills.
~rhe ministry of finance has almost
completed the drafting of two impor-
tant bills levying new taxes which 1
intend to submit to the house before
the parliamentary recess" he con-
tipued These call for large single
levy on property and a large tax on
business turnover. but even II these
bills are passed, the money for the
payment Of indemnities must be OBJ
tanned in some other way. In the au-
tumn new bills will be introduced in
the national assembly with the final
object Of covering this deficit.
Terrible Tax Burdens.
The burdens Of taxation will reach
an absolutely terrible height. A float
ing debt of 1900, oo0. 900 marks is a
constant danger, and the removal of
this debt is one Of our most urgent
tasks There are two ways in which
to do it-either its conversion into a
funded loan or it's extinction by big
levies and a heavy property tax. do
ways will Immediately yield the en-
tire liquid amount Of $1,000. 900, 900
marks
ut il tie duty Of propertied people,
not only to bow to a state of compul-
sion, but to achieve an inward convic-
ton as to the necessity OF giving up
all riches and all that is superf1uous.
Changes in the system of taxation
will be speedily submitted to the ma
tional assembly. and this reform will
represent the completion of the whole
work"
Asks Speedy Action.
Herr Erzberger concluded by ask
ing that taxation bills be disposed Of
before a recess is taken. adding:
THE war takes our riches. The
world has denied US international JUS
tice. All the more passionately and
theoretically, however, will we work
for the homeland again, and. flourish
ing in justice. concentrate our care
and endeavor upon the poor but just
German"
Favors Justice in Taxing.
Continuing. Herr Erzberger said:
"One of the first requirements rela-
tive to the restoration. of the life of
labor is the establishment of orderly
finances. 1 will have nothing to do
with suggestions for the annulment
of war loans or a declaration of gen
eral bankruptcy. My highest aim is
to establish justice in the entire taxa
ton system. The income from CAPT
tai must be taxed much more heavily
than the income from work. An in
heritance tax and heavy tax levy
on property will be the initial steps
that will be taken.
The empires income must be in
creased 900 per cent and that of indi-
vidual states and communes perhaps
! 100 per cent. Such enormous changes
REQUIRE fresh measures"