New-York tribune., 1922-01-22
Industry Is ThriUi1,g,
Taxes Are Lou and
Property High, and
the Treasury Alone Is
Empty-AUies Refuse
to Distinguish Be-
tween Rich Germans
and a Rich Germany

Self pity is still the dominant note in German
politics.
Furthermore, the government has winked
more or less at the practice of allowing Ger
man wealth to escape from Germany. This
exodus, known popularity "the fight from
the mark" has continued ever since the armis-
tice, in spite of laws passed to prevent It,
SHINES is constantly making foreign invest
ments. In Holland, according to "The London
Times" German capitalists are said to COM
mand half the available credits in the money
market. The total invested abroad is believed
to amount to ninety milllards (billlons) OF
marks" A great deal of German capital is
hidden in Switzerland, Denmark, Sweden and
other neutral countries, and the Berlin govern
ment has made little effort to compel its re
call for taxation purposes
The question is raised in many quarters
"Can Germany pay?" 1t ought to take the diff
ferent form, "Why can't Germany pay?" The
Allied ultimatum of last May fixed Germany's
reDardLlOn luUcUIeuIeSS dC 1o|,OoOV0o,V0o
marks-about s33OOO,O 100000. What is Ger
manv's wealth to-day? In 1908 it was esti-
mated at $83, 100000. The six years from
1908 to 1914 were years of great prosperity
and expansion in Germany. 1t is fair to as
sumo that the gain made in that period prac-
tically offset the losses incurred in the war
The war cost Germany large part Of her
mobile wealth. 1t swept away most of her for
eign investments, but at home it stimulated
her industry tremendously. No German terri
tory was invaded, except small strip of Al
SAGE, since ceded to France, and part OF Last
Prussia. overrun for few weeks by the Rus
SLAMS. Industrial Germany has been left near
lv intact The population of the Reich has
been only slightly diminished. German labor
is efficient, and, owing to the depreciation Oh
the gold dollar the gold value OF German
nronertv is about one-third greater to-day than
if was before the war. 1t may be put, per-
hans. at s11O, 900 ,o00, 900, which is more than
three times the reparation total
In the pre-war period Karl Helfferich, for
financial authorities in Germany, wrote
hook entitled "The National Wealth." 1t est
mated Germany's annual income at 10000
100000 gold marks, about S1O,o0o,0o0,ooo
Since the armistice Helferich has explained
that he meant gross income, not net income
Tn 1919 he stated that Germany's net income
in her good years was 8,0O0,0OOo0o marks or
S2.OOO,OOO 10000 The depreciation OF the dol
lar would increase Germany's gross income
Gf gross was meant) from 40,000,O00,00o
marks to 53,0OO,O00,OO0, and her net income
according to Helfferich's figures, to more than
1O,O0OOOO,O0O. But the Reich cries bank
ruptcy because it has been condemned BY It's
own brutality in to make reparataons
amounting to 1,5O0,0O0,000 or 2,OOO,000,O0t
marks annually.
The value of the mark is down to half 9
cent But Germany is enjoying remarkable
industrial and commercial boom. The Londo,
Times" said in an editorial on December II
last: German financiers, capitalists and manu-
facturers have at the same, time acquires
very large stocks of raw materials by sellln
paper marks to foreigners rash enough y
speculate in them. The mills, shops, factorie
and shpyards are in full work, and som
have orders booked for several months aheat
Large dividends are paid, capital Is freel
Forthcoming for all kinds of enterprise, an
there is practically unemployment. Th
government have not made a serious attemI
to tax this wealth as it ought to be taxe
Taxation in defeated Germany is lower tina
in victorious Britain, and the taxes whif
exist are in many cases evaded or not PAL
German ministers themselves have been Qucc.
- repeatedly in the Paris press as witnesses
Germany's ability TO pay. Herr Braun, Il
president of the Economic Council Of t
Reich, is reported to have advised the Reich
tag to adopt radical financial measures IN ord
to prevent the Commission of Reparatio
7 from taking steps to RESTRAIN the financ'
sovereignty of Germany Herr Schmidt, t
r Minister Of the Public Economy, recommend
measures to bring back the securities {
posted abroad by certain Germans o.
the other day our Berlin correspondent
: ported the suggestion of DR.. Sorge. the pre-
e dent Of the Union of German Industries, q
;" Continued on page fesr) xls