Evening star. [volume] (Washington, D.C.) 1854-1972, 1919-01-28
Can Pay by Installment Plan.

National debts and indemnities are
not paid by the wealth existing at any
one time IN a country. They are con-
| tinuing drains upon the industry of a
country, and are paid from time to time
in interest and installments from new
wealth as it is cTea ted. They who have
periodically subscribed to liberty
! bonds have not paid the war debt of
this country, but only advanced the
money; the debt will be paid in the
future by the taxpayers. If Germany
can pay from her annual income any
thing over and above the interest on
the indemnities she can in time pay
the principal. But the argument is
! SOUND that whatever may be done TO
cripple her industries or impair her
| transportation facilities will. to that
extent. lessen her power to pay in
IDENTITIES.
| Having reached the conclusion that
Germany can pay only out of her
| income. the correspondent estimates
| that II ,000.000,000 marks would be
available for this purpose, calculated
| on the 1913 basis. but, since the mark
has deprecated in value so per cent,
| she would now have $4,000, 900 900
| marks to devote to this purpose Civ
| ing the same value to the mark in
| good United States dollars at both
! periods. which, to say the least, is
confusing. DR.. Helfferich's classified
| ton of the wealth of Germany, begin
| ming with property insured against
| fire." suggests such an enumeration
| as an American might make if he
| began with "the good will of running
concerns" We are left in some doubt
| as to when such things as machinery,
| growing crops, etc, come in. And
even admitting that a director of the
| great DeutSche Bank is an authority
| on the subject, the figures giving the
total wealth for 1913 must have been
| materially modified by subsequent
events. As a balance sheet showing
resources and liabilities I doubt
| whether the auditing department of
The Star would pass it But the cor
respondent gets on solid ground again
1.-THE experts of the allies must de-
eide just what materials they can
demand without gripping Germanys
| national life to such an extent that
production, and hence ability to pay,
| will be diminished"
Why Not Confscate Ground Rent.
f. Since Marshall Foeh has required
Germany to deliver certain material
| things to the allies, such as rolling
stock and ships, it would seem that
| the allies claim the right and have the
power to say how the indemnities
| shall be paid. If so. why should they
not eenfasaate ground rent? This
would not interfere with production
or exchange, or rather it would open
natural opportunities to use and
thereby increase production. Every
economist knows that a tax ON site
values or natural opportunities cannot
be passed on to the user or consumer,
but must be paid by those who charge
capital and labor for the use of these
opportunities. This revenue now goes
to the privileged class in Germany,
sible fer the war, and only a small
part Is taken in taxes by their gov
eminent. Where the offense is let the
great ak fall. If any class of men
ever deserved punishment it surely Is
these junkers-oppressors of their own
people and weuld-be masters of the
world.
BY taking in payment of indemni-I
ties the site values that are now uIi-
taxed the allies would not lessen the
producing power of Germany, and at
| the same time they would strike at
that selfish system and at those who
hoped to profit by it
1 OF course the allies win do no such
thing. We sometimes prescribe a dose
| for others that we would not take
ourselves, but when 1t comes to such
sacred things as vested rights-nay!
nayt that would be sacTilege! Too
many of us are in that same boat. In
| vestment in the natural resources of a
country is too fine game. The desire
| to make living IN the sweat of other
mems brows Is not exclusively Teu-
| tonic.
| 4>--. na~,a-S. D,.~<