The Washington herald., 1920-07-18
GERMAN CASH
MOSTLY PAPER
Government Presses Keep
Up Steady Flow Of New
Currency.
BUYS FOREIGN GOODS
New Scheme of Taxation
Necessary to Meet
Reparations.
BUYS FOREIGN GOODS
(Washfngten Herald-PubIic Ledger
servfce-Special Cable Dispatch.)

(washingtsn HeraId-PubIic Ledger
servfce-special Cable Dispatch.)
Berlin. July 17.-As IL to show
how easily indemnities might be.
paid II the rules OF the game only
permitted, Germany in the last week
OF June printed and put into circu-
lation two and two-thirds billion
marks in paper money. The note
presses, which Of all industries In
Germany make no complaint OF dull
times, have, by this record achieve
ment on the eve Of the Spa confer
ence, brought the total of new paper
issued during the half year to 49,
900. 900, 900.
A semi-official financial organ re-
marks half apoloe etically in its dis
cussion Of the weekly report of the
Imperial Bank that the record for
the week would have been larger ~
the demands of the State for cash
to meet bills had not been counter
balanced by the smaller REQUIRE
ments of trade and industry. Owing
to the dull business condition. the
total ngure outstanding inspires
wonder regarding Germany's stand
ing as a reparations debtor.
Bought Foreign Bonds.
lnnation nevertheless has contrib
Cted In some measure to the repub-
iics financial stability. Part of the
Few notes isued during the six
months were used to purchase for
eign bills of exchange to nv for
future imports of food and raw ms.
teriaIs.
The"" pu cnases furnish a par
ll-I cap alton fer the apparen.
p"ran"x CT the imrrovc:nent ard
"'hi'nded strength of German ex-
cnanss In the face OF the steady
ihHation OF currency and dilution
OF It's intr lsic value.
Ine Inc7mfcr able financial posi-
ti"n of Germany is also reflected
In the amount OF 6i 6iicounted bills
Checks and tessury certificates in
III" vaults Of the Imperial Bank
which increased during the week
pr l"-S billions, largely in certif-
Gates representing government bor-
rowingS to meet current Hills.
Simple But Impossible.
Tn" mini ster of finances worrjes
ii2re bean augmented by DELAYS and
der Erzberger's 'aSatioa program.
Ills inanc al Moses planned TO
start an abJrSant fow If pubIIc
revenues by shifting the taxation
ROCK with the ward OF a 10 ce-
orit deduction from the weekly or
montnly carr ings of every individuaI |
~ salary or wages in the cuUn-
try. This. with the present high
{
"Duld give the government IL i'm
med ate daily income runTir- into
millions. His ucoesscr. Herr wirth.
vas forced by the objccti ms OF
workmen to abandon E z erge"s
simple formula of fat 10 Pc
rant deduction.
The Reichstag has hurriedly
passed a substitute measure reduc-
/ ing the deductions on smaller in
comes under $4,000 marks and in
creasing those on higher incomes
progrS< lively up to So per cent
Buzz IS men now declare that the
new scheme which provides a vary
ing scale of deductions according
to the number of members and
wage earners in family and
whether employed by the day. week
and cannot possibly be put into
effect August 1. as contemplated.
The inauguration must be deferred
until the minister and Parliament
have tinkered out a simpler ar
rangement.
The tax on business turnover
which now is due to come into e.
feet also is proving 90 highly COM
plicated that il is doubtful wheth-
er payments Of the tax can be made
until the provisions are simplified.
The government has just issued A
| book of more than 800 pages Civ
ing explanations of law. which hur-
ried business men complain leaves
them even more in doubt on how t.
figure the tax than by the original
law. The government under these
circumstances probably will con-
tinue to finance itself by continued
borrowings from the Imperial Bank.
Copyright. 1927. by Public Ledger Col