The Knoxville independent. [volume] (Knoxville, Tenn.) 1894-current, 1919-07-12
GERMANS RATIFY
TREATY IN FULL
National Assembly at Weimar
Adopts Resolution Which
Approves Pact.
REPORT RECEIVED IN PARIS
Finance Minister Declares Republic
Will Raise Six Billion Taxes
Year to Pay Off Debt-Econ-
omy Must Be Practiced.

Paris, July 1O.-The German nation
al assembly in Weimar has adopted |
the resolution ratifying the peace
treaty, according to advices received
here.
The resolution reads:
"The peace treaty signed on June %,
1919, as well as the protocol annexed
and special agreements on military oc-
cupdtion Of the Rhineland, are hereby
ratified. This law becomes effective
from the date of it's PRONUNCIATION"
Must Raise Six Billions a Year.
Berlin, Germany, July 10.-Address-
ing the German national assembly at
Weimar, Matthias Erzberger, vice
chancellor and minister of finance,
said:
Zone of the first requirements rel
alive to the restoration of the life OF
labor is the establishment of orderly
finances. | 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 tax
alton system.
"The income from capital must be
taxed much more heavily than the
income from work. An inheritance
tax and a heavy tax levy on property
will be the initial steps that will be
taken. The empires income must be
increased 900 per cent and that of IN
diyidual states and communes per-
haps 100 per cent Such enormous
changes require fresh measures.
w TO Cut Uncmployeds' Grams.
Germany Is quickly to return to a
peace-tlme financial system, Herr Err
berger declared. Among other things
the payment of grants to men VINO are
unemployed would be reduced, it was
indicated during his address.
'The empires needs must be divided
henceforth between home needs and
indemnities," he said. ''The years
| expenditures confronting us win
amount to about 17,500000,000 marks
($4, 1855 00,000). l am firmly. resolved
| to tread the hard path of economy and
therefore have given out the watch
word that from October /, 1919, there
| shall be no more items not detailed
and there shall be no more war funds.
The war finance system shall cease
and regular budget system must be
Lre-estabished.
"The first guiding principle IS That
| there must be no more unprOductive
expenditures. Therefore a gradual abo-
lition of unemployment grants mast
be faced. How are the full requ re-
ments for the empire, new states and
at some 25o00000,000 marks ($5,9J0,-
000000) to be coveredT'
After citing the returns to the en-
| pire from taxation measures prior to
and during the war and estimating
| the revenue to be derived from rev
tax bills, Herr Erzberger said
"There still remains a sum { over
/ 1OO000oo,O00 marks ,3S0,000o00) to
be covered
Two Tax Bills Ready.
1.-THE ministry of finance has almost
| completed the drafting of two impor-
| tant bills levying new taxes which
J intend to submit to the house before
| the parliamentary recess" Herr lirz-
berger stated. ''These call for a large
single levy on property and q large
tax on business turnover, but, even If
these bills are passed, the money for
| the payment of indemnities must be
| obtained In some other way. In the
| autumn new bills will be introduced
| in the national assembly with the final
object of covering this deficit
| 1.-THE burdens of taxation will reach
an absolutely terrible height. A float
ing debt Of 72O00,Oo0,000 marks (sl7-
| 136000,000) 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 CON
| version into funded loan or its ex-
| tinction by big levies and a heavy
| property tax.
II do not indulge the hope that these
two ways will Immediately yield the
! entire liquid amount Of 100000 900
/ marks. 1t is a duty not only TO bow
to a state Of compulsion, but to
achieve an inward conviction as to the
necessity of giving up all riches and
all that is superfluous.
"Changes in the system of taxation
will be speedily submitted to the ma
tional assembly and this reform viii
represent the completion Of the whole
work"
Is Herr Erzberger concluded by asking
that taxation bills be disposed Of be-
fore . recess IS taken. addinsi