Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-01-30

to meet her obligations for January
and February; requests that Germany
be relieved Of all cash payments In
1922. It also asks for a general. re-
duction in cash payments and an IN
crease on payments In kind:
The note suggests that the: Allles
take measures to restore .Germany's
internal and external credit, ana
thereby facilitate the floating Of a big
international reparation loan. 1t ar
nounce that Germany Will raise an
international loan, in order to reoucs
the floating debt,
It is pointed out in the note that the
Allies experts at the Brussels CONFER
ence in 1920 recognized that German
direct taxation was incapable of fur
Their augmentation, but that nevertne-
less bills were. now before the reichs-
tag to provide further increases IN
property tax, as well as taxes on cap
ital and corporations. The turnover
tax will be increased from n and
, one half per cent to two per cent, and
the coal tax from twenty to forty pes
cent. The burdens on production and
consumption will be increased, and.
duties will be collected on a gold
basis, The entire burden imposed on
consumption, it is asserted, Is at least
equal to that in other countries.
Explanation offered.
In explanation of Germany's finan-
cial position. the note states that en-
crgetic measures will be taken against
| the removal Of capital abroad and the
i evasion of taxation, such as the
abolition of the obligation to secrecy
imposed on banks; and control over
| the ownership of securities deposited
| with banks. 1t explains that h rail-
way rates, compared with pre-war
| conditions, had been increased nine
teen fold for passengers and thirty
two fold for freight. The postal and
telephone rates were increased
twenty-one fold.
The food subsidies for 1922 will
amount to only one billion paper
marks, as compared with 2,250,0O0,-
900 previously. The price of bread
will shortly be increased by rs per
cent. A system for insurance for the
unemployed at the expense of m.
ployers and employees will be intro
duced, to replace the existing relief.
To Raise Internal Loan.
The ordinary budget shows, with .
evenue of 1913, 200. OO0, 900 marks and
expenses of Sc, 700, 900, 900 marks, a
surplus of $500, O00, 600 available
for reparation payments. With he
object Of reducing the floating debt,
the government will raise an internal
loan this year apart from the COM
pulsory loan already agreed upon.
The compulsory loan will be non-re-
curing and is intended to finance the
reparations due in 1922, without in.
creasing paper circulation.
1t is absolutely necessary, If the
matter is viewed from an economic
standpoint, the note continues, that
Germany, should at least for 1922, be
relieved Of all cash payments on &C.
count of re%parations.
The German government recognizes
hat economic and financial considera.
tions must yield to political necessi.
ties. 1t refers to the figures taken
into consideration at Cannes by the
Allies, namely 72O, 600, 900 gold marks
in cash and 1850, 00O, 900 gold marks
in kind, and requests-a reduction in
the cash payments, increasing, il
necessary the payments in kind.
Ready To C~ollaborate.
1t also proposes that the costs Of
occupation should be credited to the
total sum in cash and kind paid in
1922 and that the other obligations
In foreign currency arising from the
peace treaty, especially clearing house
obligations, should be mitigated.
Germany reafrirms her readiness to
collaborate by all the means in her
power in the restoration of the
devastated regions: the wiesbaden
agreement was concluded in this
spirit. Germany also is prepared to
conclude agreements with the other
allies regarding deliveries in kind.
The note concludes by the declara-
ton that the recurring monthly or
Quarterly payments in foreign cur
rency greatly hamper Gcrmany's eff.
forts to put her finances in order, and
hat the restoration Of the worlds
in Germany's credit is a
prerequisite condition for the com.
plete discharge of her reparation nav.
ments. .,'E. "
Only First Step.
The German government. therefore
IS OF the opinion hat the settlement
Fof the r~eparations payments for 1922
IS only the first step on the way to a
solution OF the entire problem. II
this Is not given consideration. the
uncertainty regarding 1923 will eyer
else q p~aralyzing effect also on the
economic and financial position of the
allies.
The German government bers tho
Teparat1ons commission to note par.
t!culafly its concluding remarks, SO
tnat q way to restoring Germnny'si in.
sernal and external credit may liz
lound and a big reparation loan made
possible by the international D
ton. otpoia
Lease PrnhIem In 6 n