The New York herald., 1921-03-28
|CONSCRPT LABOR
TOPAY INDEMNITY,
ERZBERGER
Would Act for Constructive
End as Was Done for
Wasteful War.
ADMITS IT is SLAVERY
18 Months Enlistment With
a Set Task for Young
Men is Favored.
TRADE CHAOS DRAWBACK
One Help to Situation Would
Be Business on Favorable
Terms With U. s.
TRADE CHAOS DRAWBACK
ny RAYMOND SWING.

ny HA y MOND SWINC.
Special Gable to THE NEW YORK HrRALp.
Ctpyrioht, 1891, By THE Nxw YORK HERALD.
New York Herald Bureau,
Berlin, March "a.
NO man alive is wise enough to
know how much Germany will be able
to pay for reparations, because no man
can tell even approximately what Eu-
rope viii be like in twenty years"
Thus the situation is summed up in
the judgment of Matthias Erzberger,
one time German Finance Minister.
when asked for an estimate of Ger
many's financial strength. Herr Err
berger practically pleaded guilty to
Premier Lloyd Georges Indictment Of
Germany.
IF the Bolsheviki are replaced in
Russia by democratic government"
he said, I'VE should be able to pay 20
per cent. additional. Or il we could
do business on favorable terms with
America it would mean that we could
perform. accordingly, more"
I asked Herr Erzberger's opinion be-
cause he is one OF the few optimists
remaining in Germany. His optimism
took the form of advocating heavy
taxation of large incomes. property
and corporation capital and made him
the most hated man in German public
life. No small part of last years po-
litical excitement was the fight to re-
move Herr Erzberger from Office and
keep him removed. His friends do not
hesitate to say that the taxing OF the
gross German income at 40 per cent.
has more to do with the attacks
against him than any OF the galaxy OF
charges he has TO answer.
Weakness Found by Allies.
The allied experts in Brussels found
Germany weaker financially than in
dustrially. But Erzberger's Judgment
is that her financial position might
easily be improved.
"Her current expenses are 40.o00,0o0,-
900 marks, and this amount can be
raised by taxation" he said Had re-
ma!ned Minister of Finance ] should
have produced II. Sugar Ia being taxed
to-day, as during the war, pfennings
mound. The tax on brandy and beer
also has not been increased TO keep pace
with the imitation. It has been absurd
TO discriminate in favor OF these Inter-
ests, and when they bear their share OF
the burden we can meet running en-
penses without deficits.
ss1-ne deficit OF the railroads and post
office can be eliminated. Five billion
marks of the ten billions shortage In the
railroads was for the replacement o.
equipment, an altogether legitimate ex-
penditure. But omco made there is no
need for II to continue. The rest is due
to low rates. but the freight and psssen-
ger tariffs win lie increased this year,
which viii wipe this away.
.'But when It comes to paying repara-
tions we face harder problem. New
taxes on sugar. brandy and beer would
bring the tax burden OF the German peo-
pie practically to a maximum; at least
we canot raise enough additional revo-
nue in this way TO make an apprec able
difference in the sum demanded ny the
Allies. 1t is generally Acknowledged
that we have gone as far as possible
with direct taxation. We might gather
Il, four or ffve billions in paper marks
with taxes on sales and an increase In
the tax on coal, but what would this
amount be worth in reparations?
'If Il Is paper money the Allies want
We can set up a branch printing Office in
France and deliver clean notes or any
desired quantity. Wealth Is what they
require. We have no wealth remaining
besides our work.
Ideal Plan Not Practical.
Vow II seems TO me that the Ideal
scheme BY which We could do the re-
quired work for the Allies would be
one in which each German worked, say,
one hour a day without recompense
and let the equivalent In revenue be
paid toward reparetions. But there arc
no practical methods OF realizing such
scheme. Suppose We should keep the
eight hour day in the factories for
home work and then run an hour IN
addition for the Allies: the employees
simply would not give their best efforts
during the ninth hour. To do so would
90 against human nature.
And how would one estimate pre-
ciselv the service given in one hour
by brain workers OF farmers? While
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