The sun., 1919-03-29
80 - Il
GERMANY BIDS FOR
AMERICAN CAPITAL
Finance Minister Offers Ex-
emptiOn From Property and
10 Per Cent. Taxes.
NATION Is NOT BANKRUPT
But DR.. Schiller Says Old OBJ
legations Must Precede
War Indemnity.
NATION Is NOT BANKRUPT

BERLIN, March 81 (delayed) Ger
many is not bankrupt, because II has
he possibility of work, DR.. Schiller,
German Minister of Finance, told the
correspondent to-day in discussing the
financial situation. But" he continued,
she will become bankrupt. so far as II is
possible to say at present, whenever the
possibility of working Is taken away.
The financial outlook simply dis
appears into nothingness in case Of an
unfavorable peace that does not give us
an opportunity to recover our equilib-
rirm."
Or. Schiller repeated the German
plant that delay in making peace in
creases the danger OF Bolshevism, but
expressed optimism for the future II
Germany is able to obtain food and
raw materials. The Minister said that
special inducements in tho form of
lighter taxation or immunity from GER
tain taxes would be offered to foreign.
especially American, capital.
in any event." he said, mo American
or other foreigner not a resident OF Ger
many will be subject to property taxes
Similarly Germans resident abroad will
be free from property tax. Americans
and other foreigners will be immune
from the 10 per cent. tar, which II IL
planned to impose upon investment capt.
tai"
Problems Facing Country.
Tho Finance Minister pointed out that
American investment was especially
favorable under the present rate Of ex-
change.
After remarking that the new German
taxation system must await the peace
treaty, the Finance Minister said that
Germany was faced with the payment
hrst. of its before the war debts and
credits granted by neutrals: second. with
Internal war debts-loans in support OF
war sufferers and so forth-and, third
the indemnity it may have to pay. Until
the amount of the indemnity was estab
lished definitely, there could be no taxa
tion legislation beyond general outlines
DR.. Schiller insisted upon the neces-
sity of paying old obligations owing &c
the urgent need OF credit with which &c
rehabilitate the country. He said ht
realized that the amount which would
have 20 be raised would be very great
but he believed 1t could be raised.
The Finance Minister asserted thai
every known means Of raising money
would be resorted to. especially through
direct and indirect taxes.
VIII Reach New Sources.
The Minister said he wanted to war;
the public that taxation would be ex.
tended to a degree hitherto unknown ir
Germany and in a frankly anti-pluto-
cratic way. He said that income prop.
erty would be taxed heavily both for the
purpose of raising money and for the
economic effect on prices because the
Minister believes that prices will fall as
the purchasing power of the mark de.
cTcases.
The salary OF President Ebert, which
has been the subject OF discussion In
the press recently. is officially an.
nounced to-day to be $4,000 monthly
with no peruuisites or expense allow.
ances. The salary must pay the cost
o. running the Presidential office and
the salaries of the personnel Presi
dent Ebert must render a strict account
OF his expenditures and return any un.
used balance.
The railroads of Germany have beer
separated from the already overloaded
Ministry of Public Works and the con
troll of them has been made an individ
ual Ministry. Herr Hon. formerly
Prussian Minister OF Public Works, hal
been appointed Minister of Railways II
the national Government. He will 81
to Weimar at once to undertake
preliminary measures for unifying tn,
various State railways into one centra
organization.