Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1922-02-03
Cash DEMANDS
PINCH GERMANY
Berlin Asks Preparations Com
mission to Ease Up in
Collections.
OFFERS GOODS IN PAYMENT
Also Suggests That Allies Take
Measures 10 Restore Germany's In
ternal and External credit-Price
of Bread Up rs Per Cent.

Berlin. Jan. 30.-The German note
to the Preparations commission in re-
Spouse to the commissions demand
for explanations of Germany's alleged
inability to meet her obligations for
January and February requests that
Germany be relieved of all cash pay
ments in 1922. 1t also asks for a
general reduction in cash payments
and an increase in payments in goods.
The note suggests that the allies
take measures to restore Germany's
internal and external credit, and here
by facilitate the floating Of big in
ternational reparation loan. 1t an
nounces that Germany will raise an
internal loan in 1922 independently of
the forced loan in order to reduce the
floating debt.
1t is pointed out in the note that
the allied experts at the Brussels con-
ference in 1920 recognized that Ger
man direct taxation was incapable of
further augmentation, but that never
theless bills were now before the
reichstag to provide further increases
in property tax, as well as taxes on
capital and corporations. The turn
over tax will be increased from 11s
per cent to 2 per cent, and the coal
tax from 20 to 40 per cent.
The burdens on production and con-
sumption will be increased, and, in
addition, the increased customs duties
will be collected on a gold basis. The
entire burden imposed on consumption,
1t is asserted is at least equal to that
in other countries.
In explanation of Germany's fnaD-
ciala position, the note states that en-
ergetic measures will be taken against
the removal of capital abroad and the
evasion of taxation, such as the aboli-
ton of the obligation TO secrecy i'm
posed on banks, and control over the
ownership of securities deposited with
banks. 1t explains that the railway
rates, compared with pre-war condi-
tions, had been increased nineteen fold
for passengers and thirty-two fold for
freight; the postal and telephone rates
were increased twenty-one fold
The food subsidies for 1922 viii
amount to only 1,000,00O,000 paper
marks, as compared with 2,25O,OOO,000
previously. The price of bread will
shortly be increased by rs per cent. 4
system for insurance for the unem-
ployed at the expense of employers
and employees will be introduced, to
replace the existing relief system.
The ordinary budget shows, with
reveEsle of 103 ,20O,000,000 marks and
expenses of 86,70OOOO,OO0 marks, a
surplus of 1650O,0O0,000 available for
reparation payments.
1t is absolutely necessary, If the
matter is viewed from an economic
standpoint, the note continues that
Germany should at least for 1922 be
count of reparations.
The German government recognizes
that economic and financial considera-
tons must yield to political necessi-
ties 1t refers to the figures taken into
consideration at Cannes by the allies,
namely, 720,000OO0 gold marks in cash
and 1,450,000000 gold marks in kind,
and requests a reduction in the cash
payments, increasing if necessary, the
payments in kind.
It 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
INhlina Hons ch0uld ho mi crotnd