The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-10-11
GERMANS CONCEAL
ENORMOUS DEBT
Berlin Economist Says FL
nance Minister Is Hiding
Millions Of Marks
TO DECEIVE THE ALLIES
Exports Really 81 Billions Of
Marks Behind Imports, Gov
eminent Gives % Billions.
TO DECEIVE THE ALLIES
BY RAYMOND SWING.

BY RAYMOND SWING.
staff Correspondent Of TIE HERALD
Copyright. 1920, by TIE New York HERALD.
BERLIN, Oct. 9.-The insnuation that
the Finance Minister is deliberately
Withholding the extent OF Germanys
Indebtedness. which is asserted III
reality to amount to $4,000, 600, 600
marks is contained in an article in the
National Zeititng by Frederick Elder
Won Braun, President OF the National
Economic Parliament
simultaneously the Deutsche Zcituno
natly accuses the Government OF
presenting untruthful figures on German
foreign trade to the Brussels conference.
giving a far too favorable picture OF
German conditions.
"The memorandum prepared for the
Spa conference" writes Herr Won Braun.
'tgives the German Indebtedness on
March 81 of this year as $4,000 100000
marks bonded debt and 100, 000.0 0c, 900
marks floating debt, or total of 1877
100000 marks. About two months
ago the Ministry Of Finance declared
there was a floating debt of $4,000 900,
900 marks. and on September 90 we
learned that 1t was over ISL. 900, 900, 900
marks, but in addition there are obliga-
dividual States and social relief pay
ments Of States and communities TO the
sum of $4,000, 900 marks so the
floating debt was over $4,000, 000, 900
marks, or 10000 100000 marks more
than two months ago and 10000 900, 600
marks more than at the end of March.
when, II is reasonable to assume, a care
rul inventory was made.
Iudemnitfes Not Counted.
but this does not include indemnifica-
ton to citizens through the treaty of
peace (merchant fleet war supplies,
war damages). now estimated at 49,
O00.000.000 marks, which must be re-
garded as a floating debt and brings the
total debt of the nation to 416.7O0, 000,-
900 marks.
"One must ask anxiously in the light
of these shifting statements OF the
Finance Ministry. Is this now really ALL
or will we learn of more billions two
months hence? Is it a case of short
sightedness, or Is the tail of the dog be-
ing cut off gradually%
Herr Won Braun closes with the COM
ment that this is q per capita debt for
the German people OF 1000 marks
and uses the facts ia a. disserta-
ton on specialization in which he argues
that specialization of the coal mines
'canrot help redeem German finances.
The foreign trade statistics that the
Government prepared for the Brussels
conference are repudiated and termed
by the De1uSche Zoititp1 an unheard of
deception. The report showed q bal
ance of trade in favor Of Germany in
April. 1920, of SIG, 900, 900 marks which
in May reached 100000 900 marks.
How this could be would remain rid
die. says the newspaper. if 1t were not
for footnote revealing how irresponsi-
bly, the statistics were put together.
The exports, according to this note;
were reckoned at the full mark value,
while the imports were reckoned on the
mark value oe 919 and the actual values
were. used only in Individual cases. The
newspaper adds: Since the greatest
depreciation Of our currency and the con-
sequent rise in prices set in in the first
quarter of 1920. it is apparent that these
official statistics give a completely false
picture OF our foreign trade"
Exports and Imports.
Reference is also made to the reports
by Dr. Behnsen and DR.. Genzmer, based
on the official figures but not attempting
TO estimate actual values. In 1919 they
estimate the German exports as $4,000
000, 900 marks behind the imports. while
the Government gives the sum az % 000,-
600 600 marks, and for the first quarter
of 1920 they estimate the exports as
25.500 900, 900 marks behind imports as
against the official total of 5000, 000. 900
marks They found the import valua-
tions of the Government needed to he
multiplied by two and a haR to come to
n truthful result, and in some cases the
Government calculated only tenth part
of the actual values OF imports.
ltaft. - f1,-
trade for the first quarter of this year is
Imports. $1,000. 100000 marks, and ex-
ports. 10000, 900, 600 marks.
How uncertain are the Government
statisticians Is shown by the fact that
the figures prepared for the Brussels
conference vary considerably from the
monthly reports. which begin TO approach
the results obtained by Behnsen and
Genzmer."
Illuminating figures upon Germany's |
industrial situation were given at the |
first National Congress of Workmen's |
Councils (Betriebsraete) by Rudolph !
Wiesel. the Socialist former Minister of (
Economics, who declared that II Ger |
many were TO import now like amount |
TO her Imports OF 1913 she would spend /
100000. 600, 600 marks yearly.
There Is no one so optimistic Is to |
believe we can manufacture for export |
one-half the goods to balance imports
OF such magnitude he said.
The German iron industry. he said.
might next year obtain twelve million
tons of ore and manufactur four and
a half million tons of iron. or less than
a fourth Of peace time production. Last
year Germany produced six and a half
millions but she had available two and
half million tons OF shells from her
war stocks as material.
Rumors are going through the press
that the railroads may pile up a 10000
100000 marks deficit next year. The
Transportation Ministry has issued
denial setting the figure as more than
16 800, 10000 marks this year, but no in
crease next year.