New-York tribune., 1919-07-10
Erzberger Tells Assembly
First Peace Budget Will
Call for S6,25O,O 600. 900:
Economy Is Necessary
War Burden Staggering
Rich Told They Must Bow to
Compulsion and Expect
Most Severe Assessments

BERLIN, July Q BY The Associated
n peace-tlmo financial system, said
Matthias Erzberger, Vice -Chancellor
and Minister Of Finance, speaking at
National Assembly. Among other
things it was indicated during his ad-
dress the payments OF grants to men
who are unemployed will be reduced.
"The empires needs must be divide /
kenceforth between home needs ana
indemnities,' he said. THE years ex-
penditures confronting us Will amount
10 about 1850, ,00C 900 marks (normally
s4375,000, 000). am firmly resolved TO
tread the path of economy and, there
fore, have given out the watchword
that from October /, 1919, there shall
be no more items not detailed and
there shall be no more war funds.
Peace Budget Planned
"The war finance system shall CEASE
and q regular budget system must be
reestabished The first guiding prin-
cple is that there must be no moro
unrroductive expenditures. Therefore,
gradual abolition of employment
grants must be faced. How are the
full requirements for the now empire.
new states and communes, which may
be estimated al some $4,000 900, 600
marks. TO be covered ?"
After citing the returns to the en-
p!re 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 sum OF over 10000, 100000
marks lS2.5oe.c00,0 0,0o0) to be covered.
Tax Bills Prepared
"The ministry of finance has almost
completed the drafting of two impor-
TAFT bills levying new taxes which
intend to submit to the House before
the Parliamentary recess he contin-
ue1 These call FIR large single
lev! On property aud a large tax on
business turnover, but even if these
bis are rassed ths money for the pay
mcEt Of indemnities must be obtained
in some other way. In the autumn new
bills viii be introduced in the National
Assembly with the final object of COW
er'ng the deficit
The burdens Of taxation will reach
all absolutely terrible height A float
ing debt OF 2,000 coo 900 marks
(slS,o0oAG0 o004 is constant danger
AID the removal OF this dept is one Of
oOi most urgent tasks. There are two
Mays IN which 10 do it-cither it's
c.: version into funded loan or its
eSt nction by big eves and heavy
Tr.perty tax + 10 not indulge the
hcpe that these two ways will imme-
eletely yield the entire liquid amount
q 71geo,VVa. .9eh marks. II is the duty
eE pFoper1ied people not only to bow
n state Of ccmpulslon, bat TO achieve
an inward conviction as to the neces
~ of giving up all riches and all
that isssuper7uous
Won't Repudia.e Debts
Change in the system OF taxation
VII be speedily submitted TO the Ma
tlcnal Asssnb Y. and this reform will
represent the completion Of the whole
vurk
One Of the first requirements reia-
TT to she restoration of the life Of
ller Is the establishment of orderly
finances. Will have nothing to DO
Nlh suggestions for the annulrfent of
ssi loans, or declaration of general
'ankruptcy. Ny highest aim is to es-
afiish Justice in the entire taxation
ssstem. The income from capital must
te taxed much more heavily than the
Income from work An inheritance
Ny and d heavy tax levy on property
vi be the. initial steps that will be
'ssen The empire income must be
increased 9o0 per cent and shat of in
sFidual states and communes perhaps
i'o per cent. Such enormous changes
ie1u!re fresh measures"
.aerr trzberger concluded by asking
Eaf taxation bills be disposed OF be-
lere a recess is taken. adding: "The
ssr TAX our riches. The world has
e-sied US international justice All
the more passionately and energeti-
ssAiiy,. however, Will we work for the
lameiand again. and, fourishing in jus
''es, concentrate our care and endeavor
aEoa the poor but just German"