The New York herald., 1921-07-13
BILLION GOLD MARK
PAYMENT ASSURED
German Reichsbank Helps
by Getting 50,000,0O0
Credit in Holland.
SETTLES PREPARATIONS
Raid on Stock Exchanges
Ends for Rest of Year and
Rise Is Expected.
BUDGET PLAN DOUBTFUL
Question Whether DR.. Wirth
Will Be Able to Realize the
Amount Expected.
SETTLES PREPARATIONS
BUDGET PLAN DOUBTFUL

special Cable 10 THE New YORK HERALD
copyright, 1921, bD THE New YORK HERALD.
New York Herald Bureau.
Berlin, July 12.
The Reichsbank announced that it
has closed a credit transaction for
15o,eoO,oo0 gold marks in Holland,
which, with similar credits which it is
now negotiating, practically assures
the payment of the balance of the first
1,00O, O00,00 gold marks in reparations
which must be fully paid off by Au-
gust 81. With these transactions fin
ished the raid of the German Govern
Hent on stock exchanges for foreign
securities ends for the remainder of
the year and a rise in the value of the
mark is awaited accordingly
No details of the nature of the Dutch
loan have been published. the Reichs-
bank contenting itself with the state
n1ent that the terms We're bearable and
that the guarantees demanded could be
given. What further negotiations are
pending is not hinted at. but it is
known that important financial con-
ferences are going on between German
and American bankers. The Dutch
loan was made through the Dutch
branch of Mendelsohn & Co.
The Berlin newspapers take pride in
noting that the Reichsbank demonstrated
again that II commands the confidence
of foreign investors and anticipate re-
covery from the perilous approach TO
collapse due to the fail in the mark.
Hitherto 247.ooo.0e gold marks have
been paid on the first 900. 000. 900 marks
in reparations. and the only hope tie
Government had of meeting the balance
was by obtaining more foreign securities
or by arranging foreign credit.
In strong contrast to the worries of
the fnanciers. it is said bets aggregating
100000 marks were laid in the bet
ting ring at the Grunewald track on
Sunday. This established a new record,
and 1t Is estimated the Prussian Govern
ment's share will exceed 200. 900 marks.
German financiers are inclined to re-
gard Chancellor Wirth's budget estimate
and tax resources as overoptimistc. The
estimated expenses for 1921 roundly
are 100000. 900. 900 marks. Chancellor
Wirths taxation programme would raise
$4,000, 100000 marks. The other 20, 000,-
100000 he hopes to raise thro ugh an
increased export tax on coal and taxing
! the difference between home and foreign
coal prices.
Dr. Wirth attempted to make his taxa
tion programme attractive by making
half of II direct taxes on income and
business profits and inheritance. He
also reminded the people that these
$4,000. 100000 are paper marks. 1t is scant
consolation that in gold marks this
sum would be but one-tenth this
amount. because the increase in wages
only averages seven times the peace
time rate.
1t is a dubious point whether DR..
Wirth can cover the railroads deficit
of 16. 600. 10000 marks through increased
rates as he proposes. He intends to
raise %, 900 100000 marks through income
taxation. This tax varies from 10 to
so per cent. and is 100000. 200 marks
higher than in 1920 But this 23. 600 900, 600
is only three times larger than the
peace time income from taxation. while
incomes have increased always in paper
marks to seven and eight times the
peace time level.
Or. wirth's relatively low estimate
OF the returns from taxation income Is
a confession that he doubts the ability
of the Ministry of Finance to reach