New-York tribune., 1922-02-12

Of the Peace Treaty" puts the case
clearly and strongly. He rcckons that
merely to pay the prescribed annual
-,oo0 0,0O0,O 900 gold marks and the 26 per
cent on German exports would take
nearly quarter Of Germany's present
national income. while Gcrmany's in
ternal taxes, even if cut down to tho
hone, will require nearly as much more
All estimates of national income, how
ever, arc little better than gucsses. NV
own guess. from Keynes's own data,
would be much higher than his because
he seems to pass by too lightly tho high
rrotIts which are acknowledged to OK
lst (even when measured by gold
marks) and because his result seems 50
very small compared with Germany's
resources. have found no ono in
Europe whose opinion on this subject
commands respect who believes that
Germany can pay now Most experts
regard the proposition as preposterous.
II is certainly clear that, at this time
the ALLIES cannot collect the stipulated
repa'ations full and ought not to try;
they cannot collect 1t rot only because
Germany cannot pay but also because
she cannot be made to pay so large a
sum.
Thre is al ways some evasion of taxes
and the higher the rate Of taxation the
more the evasion. Beyond certain
point. therefore. rise in the tax rate
defeats itself. The Germans are now a
ration Of tax dodgers. Only the work
ing man gets caught. His income taN
Is deducted by his employer from his
pay. while his employer conccals and
scouestrates his profits. and keeps
special false set Of books for the in
spectlon of the taX collector. More
over. unlike his workmen's tax. his own
IS not paid when his income accrues.
but only after months Of red tape the
pra effect of which postnonement
IS to greatly redncc his tan burdens.
because the mark in the meantime
tails; further evasion also takes place
by the export and sale ef money and
credit. Another kind of evasion is
smuggling exports into Holland and
other friendly countries for re export
ss goods Of that country using the
trade connections built up during the
war and the blockade and thus cscap-
ing the 70 per cent export duty.
me motives for evasion are tremcnd-
ously strengthened by the fact That
tho proceeds go to enemies Patriotism
seems to the tax payer to justify him.
IN evadlng whereas previously it
spurned him TO pay up Under these
circumstances Germany's income will
elude capture like CREASED pig.
nus the arguments for morato-
rium Of several years are Irresistible.
without a moratorium or other drastic
reilef from the present schedule OF
payments Germany cannot and Will not
Lay what She is scheduled to pay. and
the only satisfaction the Allies can get
'and it will be no satifction. cxceot
possible to France) will be to nnjsb
her Germany accuses France and oth
crS suspect France Of greater dosi~o
10 punish Germany than to rccciv,
reparations
Surely the world cannot afford to
.countenance revival of imprisor
ment for debt in novel international
form For no matter haw far F,urop,
goes IN playing the jailor to Germany.
she cannot thereby squeeze blood rrom
q stone.
If the idea is "to hold Germany
GOWN for fear of future war. tho rcnl,- |
is that those now ruling Germany arc
not mllltaristic, and "holding her down
Is is the surest way to put the German
back in tho saddle | agrca
mat Germany may some day bring on
war; so may any nation. France
ms likely as any Holding Germany down |
rs not the right way to go about insur
ing peace to the world, for it is both
expensive and futile The right wav is
Tor us all to agreo in advance to put
down aggression collectively by "thc"
league or "a" league Of nations.