New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-05-16
Germany Finds
Puzzle I'm How
To Pay Allies
Statesmen, Business Men
and Editors Occupied i'm
Discussion of Measures
to Raise Funds Required
Many Doubt Possibility
All Agree Productivity and
Thrift Must Be Increased
If Demand IL To BE Met
By Wireless to The Tribune

Copyright, 1921. New York Tribune Inc.
BERLIN, May 15.--Fultillment Of tho
economic terms to which Germany cub
scribed by her submission to the Allied
demands is causing the statesmen OF
this country to think, and think hard.
How Germany is going to discharge her
obligations is being discussed at length
in business and political circles and in
the press.
Philip Heinecken, chairman of the
board of directors Of the North German
Lloyd Steamship line, discussing Ger
many's new undertakings to-day, said:
81 believe it is out Of the question
for Germany to fulfill the obligations
placed on her by the Entente Powers,
but solid, united front in the whole
nation and firm determination by the
whole German people to work as never
before, combined with the most ex
treme thrift, will enable us to pay at
least as much as possible"
Holds Terms Still Indefinite
Robert Schmidt, Minister of Com
merce and Industry in the new Wlrth
Cabinet, says that it is impossible yet
to grasp the full extent Of Germany's
obligations, because certain provisions
of the Allied ultimatum were so vague
as to require Interpretation. he says,
however, that he will use the power of
his office so to divide the tasks i'm
posed on the German people that they
will fall equitably on all classes of the
population.
Professor Wilhelm Ostwald, famous
chemist and guiding genius of the Ger
man dyestuffs industry, who is en-
gagged in developing some new DIS
coveries he has made which he believes
will greatly increase the country's
productivity, said:
"My only advice to the German peo-
pie is to waste no energy and to put
every bit of it into work"
August Mueller, Under Secretary of
State and q member of the national
economic council said:
"Germany's capacity to pay depends
partly on factors the influence of which
is not yet seen. The annual payments
demanded of Germany amount to from
annual income. By the adoption of
system of direct and indirect taxa
ton that will touch all productive
sources, it is possible and even proba-
BILE that Germany will be able to meet
her obligations, at least for a certain
time. This is particularly true if
the national income can be increased.
The present system of taxation is in
adequate. The taxes on land must be
changed so as to place an equal burden
on the rural and urban populations.
This step must be accompanied by q
simplifcation of our system of gov
nrnn1pnt or h ayo%
the cost of operating it.
Would Nationalize Industries
SIN addition, German industries
must be nationalized, at least to the
extent of making it possible for us to
supply our home needs from our home
markets. This will reduce the amount
of imports and will increase the bal
ance of trade in our favor.
I'm the last year Germany spent
abroad 1,500,000,000 gold marks for
grain alone. We can eliminate this ex-
penditure by the adoption of a national
production and consumption system.
Similar readjustments can be made in
other fields.
can increase in the volume of our
exports is, of course, desirable, but
t Il is Is not important because Of the
difficulties placed in the way of Ger
man exports. There is only one wav
out for the German people, viz, more
work and production and greater
thrift in consumption on the part of
both the state and the individual.
This alone will not solve the repara-
tlons problem, but it is the only way
to an all around understanding of Ger
many's capacity to pay"
Wealth Must Be Created
Herr Parbus, leading Socialist theo-
retician, said:
"This years payments we shall
somehow scratch together, but the
solution of the separations problem as
whole demands revision of our ma