The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-10
TAKING GERMANY
INTO BO[SHEVISM,
SAYS HELFFERICH
State Deficits Made Up by
Printing Millions of
Marks Monthly.
INITIATION is RESULT
Former Minister of Finance
Can See Only Red Menace
at Roads End.
FAV0RS A FORCED LOAN
Some Critics Say Plan Is
Backed by Capitalists and
Poor Will Suffer.
INITIATION is RESULT
FAvORS A FORCED LOAN
by RAYMOND SWING.

BY RAYMOND SWING.
Copyright, 1920, bp THE NEW YORK HzzALp.
Special Gable to THE New YORK HRALD
New York Herald Bureau,l
Berlin, Dec. ..
The German people are being taxed
into Bolshevism," writes DR.. Karl
Helfferich, formerly Minister Of FL
nance. in commenting favorably on
the plan to force a loan of 10000 00,-
600 marks proposed by President Hav-
enstein of the Reichsbank. Our taxes
not only exhaust our national business
revenue to the limit, but consume the
substance OF our property TO peril
Gus extent.
Matthias Erzberger declared that a
good Finance Minister was a social
zation minister and defined the de-
probation Of currency as the great
est specialization the world had ever
witnessed. But Herr Erzberger's So
cialization is Bolshevism. For in con-
sequence of the initiation the savings
of the middle class are vanishing, small
investors are brought to penury In the
endless waste between wages and
prices that has begun. and so unrest
is perpetuated
Imitation is the immediate and in
evitable result of our State deficits. for
the shortage is made up with the print
ing of new billions OF marks month after
month, always with a decreased value
and always sending up prices. The de-
struction of property which follows this
depreciation was completed and fastened
by the tax reforms of the National AS
sembly to degree the German people
have not yet fathomed.
Money Shrinks One-tenth.
For instance, the man who owned
100000 marks in peace times and owns
100000 marks to-day is only one-fifth
as rich as he was before because money
has shrunk to one-tenth of its early pur-
chasing power. Nevertheless. his second
100 900 marks is heavily taxed as an In
crease OF value through the war. The
emergency property tax, contrary TO
it's first intention, is now a pure at
tack on property to a rate as high as Go
per cent. The inheritance tax takes UP
30 per cent The income tax, through
stretching the definition OF what income
is, takeS not only incomes, but virtual
property.
High tax rates--up to 60 per cent
are a hindrance to the increase OF capi-
tai. The Impeachment and suffering
OF the whole German people is the I'M
avoidable effect of the tax laws passed
since the revolution.
"Bolshevism lies at the end OF the
road Our financial collapse will bring
on economic, social and racial collapse
unless II Is understood before 1t is too
late that there can be no business with
out manufacture and there can be no
manufacture without capital. The poor
will not become richer. but poorer If
wealth is ruined and the opportunity u
become wealthy is closed.
Increase OF production. not consump-
ton of property Is our one salvation"
But how is a forced loan OF 10000
100000 marks to meet the Government
deficit?" asks the Conservative Kroue
Zeitnng 1t recalls the first estimates or
the deficit made during the Spa con-
ference of about $4,000. 100000 marks
This rose in September to over $4,000
100000 marks. and in October to over
20, 600, 100000 marks. Now It is over
los. 900, 900. 900 marks. counting the cost
of the armies of occupation at 46.5o0,-
100000 marks.
Havenstein Enlar8es Figures.
President Havenstein figures that this
item will come to between $1,000. 100000
and 10000. 100000 marks.
What is 10000, 000, 900 marks In the
IhCB OI lnir NHC [fcN~ 6ttNNV 6ohS.
President Havenstein has said that
without a forced loan our business sys-
tenn will collapse in two years. But II
his own reckoning is right. our reprievt
from the gallows has only six months TO
run. with or without forced loan,
we are going Exceptionally into State
bankruptcy IL the peace treaty has to be
fulfilled
The radicals are against a forced loan
and now II has come to light that Ma
Jority Socialists influence had Haven
stein's plan suppressed when IL was first
suggested early in the year. They had
placed their hope In the application OF
their principle OF direct taxation.
The Freihet. declares that the Presi-
dent of the Reichsbank has delighted the
capitalists. For. in the first place. n
forced loan means the postponement OF
the property tax" IL says Further
more, IL means that the sums they Will
provide the State VIII bear interest and
can be recovered In part at least by
selling new bonds II will be the big
gest and smartest caIatalists who win
understand how to do this"