Evening star., 1924-04-09

The committee finds that there has
been no proper provision for deanng
with incomes from abroad, and the
necessity of adjusting inequities In
this respect is pointed out
Another need, the committee mas,
! is the establishment of a clears prln-
ciple for governing the financial re-
Iations of the reich and the federal
states and communeS. 1t considers II
essential that at the earliest possi-
BILE moment preparation of complete
statistics of receipts and expenoi-
lures of the states and communes De
resumed. The financial systems or
these are such, it points out, that the
reich budget might be suffering from
various ills while at the same time
the communal budgets were enjoying
considerable prosperity. 1t makes no
detailed recommendations on TINS
point, but holds out the idea that
self-interest might be largely relied
upon to bring about an adjustment
if the committees recommendations
are accepted in their entirety.
Responsible as Whole.
1T does not suffice, in our juds-
ment," says the report, ''for the Reich
to remain in supine contentment with
the present situation merely because
il has been hte result of constltu-
tional evolution. Germany waged
war as an undivided whole. and the
financial responsibility of the Reich
to the allies cannot be qualihed or
weakened by an attitude of passive
aCquieScence in the undimini Sheu
rights of subordinate areas. So long
as Germany has any external obllga-
tfon they must be paramount and the
resources normally to be assigned to
the states and communes must De
clearly defined and care must be taken
to secure that these resources are
not more than adequate to legitimate
needs"
The report then takes up the con-
Sideration of the various taxes rec
commended. 1t says there should be
no tobacco monopoly but that the
free manufacture of tobacco should
only continue under suitable regula-
tionS, which the committee defines,
These include the appropriation of
Improbable establishments and the
formation by the remaining existing
manufacturers OF "a consortium, the
state to buy its products at prices
fixed at regular intervals. Importers
would be treated in the some manner.
The retailers would be licensed and
obtain their goods from the state
warehouses.
Estimates of Profits.
The committee deals extensively
with estimates OF the profits from
these operations and the taxation pos
sibilities and revenues therefrom for
reparation. 1t eXpreSse1 belief that
through its plan a much larger sum
can be realized while decreasing the
burden on the consumer through
elimination Of the less efficient fac
tories and reduction of the surplus
profits of inferno diaries.
As regards indirect taxes, the re
Fort declares the rates appear gem
orally too low. and TO be susceptible
of increase without dininution of
consumption. but thinks the turnover
tax should be reduced somewhat in
favor Of other forms Of taxation. The
motor transport tax is considered d
too low. anu the adVisability of an in
crease in the petrol tax or the inn
! position Of a supplementary duty on
motor cars is mentioned. There is
room. too. for much more revenue
from death duties. the committee
thinks.
/ The report proposes one commits
! SiOner to supervise the controlled
revenues of Germany under its plan
| the tobacco. alcohol. sugar ana beer
! taxes. and of the customs revenue as
! security for the payment OF the sums
| charged annually for reparations on
/ the, German budget. This part of the
REPORT celebrates the recommends
; tions in this respect, made in part !
| of the report
Selection of Chief.
! The commissioner. il says. would
! have under him subcommlSsIoner
! for each of the five controlled reNe-
! nueS The selection of the chief com
missioner would be from an area aS
W ide as possible and not conhncu 10
! tire allied countries, the report rec
! ummends. This commissioner. IT says
| should have the assistance of con
/ sultative and advisory committee on
/ which each Of the Interested allied
! countries would be represented.
| The report goes into detail with
/ the system Of depositing the revenue
/ derived into the central bank to an
! account at the disposal of the com
| NV. detailed responsibility. but
| would see Ia it that the system IN
! general was one of honesty and efii-
! cteucv. and take measures 10 increase
! the productivity of the revenues II
( th.y proved insufficient.