The New York herald., 1921-03-04
BRITISH PREMIER
INDICTS GERMANY
Continued froa, Fourth Page,


alton toward the cost OF the war, Ger
many made no such effort. To-day her
apparently gigantic debt Is reduced al
most TO the amount OF pre-war liabilities
by the process of depreciating currency.
She has, fominally imposed heavy direct
taxes on wealth, but every one knows
they are not fully collected.
Her indirect taxes which are taxes
affecting the bulk CT her population. are
ridiculously low as compared with those
Of Great Britain. Let me give few
examples:
For the purpose of computation
have taken ten paper marks. four paper
francs and one shilling and siNpence ~
the equivalent OF one gold mark. ! DO
not think, having regard for the rela-
tive value OF these coins. that>this stand
ard is unfair. but l am prepared 10 test
the comparative taxation OF British and
German citizens by any standard Of
value which DIR. Sitnons would accept
for the coins in which taxation is paid
in the respective countries.
The German budget provides FOR a
subsidy of ten milliards marks for rail-
ways and posts. and for food the sub
sides are ten milliards.
I'm this country we have abolished
both these subsidies and imposed OH the
travelling and on the consuming public
the full cost in one case, Of running the
railways the post and the telephones.
and In the other case the food supplies.
These subsidies are a reduction and
abatement Of German taxes aud consti-
tute a subsidy OF her industries fier
failure to bring up her taxation level to
the tax level i'll allied countries consti-
tutes an infringement OF The treaty Of
Versailles. and not until She imposes
at least equal taxation viii She be able
10 meet the demands OF the Iaris pro-
posals.
.gThe treaty or Versailles was signed
less than two years ago. The German
Government already has defaulted in re-
spect to some Of its most importan, pro-
visons-the delivery for trial of the
criminals who have offended against the
laws Of war. disarmament and the pay
ment OF cash or in kind to the amount
OF twenty millards Of gold marks These
are some of the provisions The Allies
have displayed no harsh insistence on
the letter OF their bond. They have eN-
tended the time and modified the charac-
ter of their demands, but each time the
German Government has failed them.
Military organizations-somc OF them
open. some clandestine--have been al
lowed to spring up all over the country.
equipped with arms which ought to have
ernment had own respect for the rep
srations and sincere desire to help the
Allies repair the terrible losses inflicted
on them by acts of aggression for which
the German Government was guilty, We
would still be ready, as before. to make
allowances for the legitimate difficulties
of Germany. But the proposals put for
ward have reluctantly convinced the
Allies that either the German Govern
ment does not intend to carry out the
treaty obligations or has not the strength
10 insist in the face of selfish, short
sighted opposition upon the necessary
sacrifices being made.
'.If that is due to tho fact that Ger
man opinion will not permit them. the
situation is made more serious and rem
dcrs it all the more necessary that the
Allies should bring the readers of public
opinion lin Germany again face TO face
with the facts. The first essential fact
for them 10 realize is this: that the
Allies. while prepared TO listen to every
reasonable plea arising from the Ger
man difficulties. cannot allow further
palter'ng with the treaty.
I'VE, therefore, have decided. having
regard for the infrs ctions already CONF
mitted and the determination indicated
in these proposals that Germany means
10 further defy and explain away the
treaty. 10 challenge the issues not merely
in these proposals, but in the official
statements made for Germany by the
German Government. that we must act
on the assumption that the German Co..
ernment not merely is in default. bat
that it is deliberately in default, and un-
less we hear by next Monday that Ger
many either is prepared to accept tie
Paris decisions or to submit proposals
which will in other ways equally salts
factorily discharge its obligations under
the treaty of Versailles Csubject to con-
cessions made in the Paris proposals.
We will. as from that date. take the .oi-
lowing course under the treaty of Ver-
sailles."
Mr.. Lloyd George then read the allied
decisions with regard to the steps to
be taken Monday by the Allies il the
Germans did not accept the Paris do
..icinna infer. 81 q lfa nI... 1ararc.rals