South Bend news-times. (South Bend, Ind.) 1913-1938, 1919-11-30

IN ORDER 70 cope with the vast
war debts. is being discussed in
nearly every country Of Europe.
In the following article IS de-
scribed how such a levy is 70 be
made IN Germany.
Whether a levy on capital Is the
only way out OF crushing indebted
ness for the countries that were
concerned in the late war IS a mat
ter OF argument-and for the future
but Germany already has a cut
and-dried plan. II Is well worth at
tention in other European countries,
and 1 will therefore describe it in
o. some detail.
The broad principles Of the scheme
are plain enough, and may. quite
possibly, form a basis for similar
schemes in other countries. especial
" II II should prove as prolific a
money-raiser as its sponsors hope
and believe. Therefore we have all
an interest In understanding the
lines on which IL is proposed 10
work.
The debt incurred by Germany
between Aug. 1, 1914, and mid-July.
1919. was 165 milliards Of marks. or,
according TO DR.. Helnerich, about
one-half the available pre-war in
come OF Germany. The entire ex-
penditure for 1913 was only 2,40O,-
10000 marks or at the normal ex-
change, S6U5. 100000.
Now the annual expenditure % be
faced. at a low estimate. is 23,50O.-
600 marks or. at the normal ex-
change as before. $5,875. 900, 900 Of
which no less than S2,O61. 500, 600
represents interest on debt, and
about half the latter amount pen
sions for war victims. etc. Expendi-
ture Of various states and munich
palities, too. has doubled.
TenfOId Expenditure.
Without taking indemnities into
account. therefore, Germany has 20
meet annually expenditures amount
ing 10 about 10 lines what it was IN
the last complete year before the
war
Nobody has yet ventured or an
estimate OF what the capital levy
may produce. but It Will have to be
a very considerable sum if the bud
nance minister estimates that the
new taxes-nOt including the levy
may produce Il 10 Is milliards or
marks or not much more than half
Germany's requirements. a serious
position indeed.
IL is not the first time that Ger
many has had recourse to a capital
levy. She coquetted with such
scheme shortly before the war, and
called il a fortunes tax" it being
introduced to meet her increased
and increasing military expenditures
The amount was a milliard marks
on. 1000, 900. 0O0) or $3.50, 100000
spread over two years.
In no case did the @ X amount to
more than one per cent Of the tax
able capital, and Germany being
then in the zenith Of prosperity the
sum was obtained without difficult
". though there was much oppO-
sition in the reichstag when the pro-
posal was before that body.
Terms Of Levy.
Now as 20 the terms Of the levy.
IL affects all German nationals and
all kinds Of companies Foreigners
permanently earning their lveli-
hood in Germany" also come under
the provisions of the measure.
At the same time it is doubtful
whether the policy now being adopt
ed by large numbers Of foreign
capitalists. particularly Americans, of
buying up for a mere song derelict
factories and plants, is calculated TO
DO Germany much good. except insO-
far as II Will provide employment
for more German labor and TO
slight degree stimulate the demand
for German material
According to pre- ~ arrangements
returns viii have To be made TO the
government of the values OF for
tunes on the last day Of this year.
the levy being payable as from that
date. Fortunes Of private persons
are liable TO il when they exceed
5000 marks.
Furniture. use-fttings and deco
rations, as well as nearly all private
belongings I'm households. are not
taxable, but precious stones and
pearls and articles made OF precious
metals when their value exceeds
10000 marks. come under the inn
post This latter provision is made.
no doubt, in view of the tendency
that has been very marked among
Germans for months past to con-
vert cash into precious stones for
tax evasion purposes.
From 10 to 60 Per Cent.
For the purposes the levy, for
fumes are divided into sections of
$4,000 marks. ON the first $4,000
marks or part Of $4,000 Of fortune
the levy amount 20 10 per cent; on
the second $4,000 marks or part Of
$4,000 marks Il il l. per cent
Thus a man with "a fortune of
100000 marks pays 10 per cent on
the first section and 10 per cent. on
the secondhand is, IL per cent. on
the whole amount.
The amount. OF the levy rises un-
on IL is &C per cent. on The amount Ct
fortune between five and seven mill
lions. and 90 per cent. for anything
ever seven millions I'm this way
fortune OF N 100000 pays ISIS per
cent; NJ. 100000 pays PCS per
cent. and NJ 100000 pays 542