New-York tribune., 1921-02-03
German Budget
Padded to Show
Great Deficit
Allies Financial Experts
Tell Berlin How to Cut
20 Billion Marks From
Estimate of Expenses
Items Multiplied by rs
Many Taxes Are Far Below
Other Nations; $4,000
Added to Employee Force

PARIS, Feb. g (By The Associated
Press)--Germany is told exactly How
to eliminate che 10000 oooooo marks
deficit in her 1920 budget In the report
TO the Allies of the conference of finan-
cial experts held in Brussels, made
public here to-day.
Certain German expenses are de-
clared to have been multiplied seventy
five times over those Of 1919, and GER
tain German taxes are shown to be far
below those the Allied populations are
paying. The report says:
Many figures in the ordinary budget
seem TO have been established by an
administration and Parliament equally
desirous Of showing the world Che pre-.
carious financial condition of Germany
and her difficult situation
If the various recommendations made
are followed the budget should be
speedily balanced, says the report.
Thus. with continuation Of Germany's
economic recovery, the experts declare
that Germany "in relatively short
period can meet her treaty obligations
through taxation. without continuing
TO increase her floating debt or initiate
her currency"
Credits Only Partially Spent
The report says the 1919 and 1920
budgets of Germany carried number
OF credits which were only partially
disbursed, such as 16,500, 100000 marks
for the Allied armies of occupation
expenses, of which only 4,500,000,000
marks was spent. The budget for 1920
carried 2,00o,o00,oo0 marks for execu-
II, 900 900 900 marks had been paid
out up to December last.
Items not justified or greatly multi
Piled over previous appropriations are
said to appear in the 1920 budget. The
Ministry Of the Interior appropriation
was raised from 100000 marks to
1,433,000,000 marks, an increase Of
1890 per cent. The Foreign Affairs
allowance was increased from 24,000,-
600 marks to 295000,00 marks. The
postal and telegraph employees. ex-
penses multiplied seven times over
those of 1919. Thirty-two billion marks
were listed for economic subsidies.
SAID to largely unnecessary, and all or
the greater part of these and similar
expenses, the report declares, should
disappear from future budgets. The
deficit of 19,000,000i0o0 marks In rail-
tions should be eliminated through
disappearance of the items charged
and increasing of rates, wkich, the
report asserts, have been inadeuua$ely
raised. The German answer to eues-
Ilonnaire is cited, showing there are
5oo,o00 more government EMPLOYEES
than before the war.
Indirect Taxes Inadequate
German direct taxes are deemed ada-
qrate, but the indirect taxes. inciud;no
those on alcohol, tobacco, sugar ard
other articles, are declared to be great
r. insufficient, the report saying the
aiiied taxes on the same commodities
are, vastly heavier, based on the MIR
chasing power Of money per capita. The
tax on such commodities is seventy
times heavier in England and clever,
times heavier in France than in Ger
many.
Coal is calculated to cost the French
population four and ene-half times
what the Germans pay, according to
the purchasing power of the mark. In
creased customs have urged as
the low value OF the .Aarx and the
failure OF salaries in Germany to in
crease proportionately are said to give
the Germans an advantage that might
result in protective tariffs, so that it
would be to the interest of Germany
to anticipate such action. This recon-
mendation was made January Ill. and
therefore prior to the Allied Supreme
Councils plan for 12 per cent tax
on German EXPORTS
The report expresses the willingness
of the Allies to aid Germany to i'm
prove conditions and says they are
anxious to avoid exercising their treaty
rights under Paragraph IL, Annex 8.
Part s, to take ."all the revenues Of
Germany, including revenues destined
to be applied for internal loans.p