The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-04-09

| III SuDCiN l6tOIi VI liOAS'
try in the Ruhr should be withdrawn.
of five hundred million gold marks,
as a result of this transaction. The
budget can therefore be reinforced
to that extent and after making
allowances for the withdrawal of
$50. 900, 900 gold marks in respect of
the transport tax, there will be
balance Of 100000 gold marks,
which should be available for meet
ing peace treaty charges.
by the procedure we have indi-
Gated, any danger of hampering the
future stability by a premature call
upon the ordinary resources of the
German budget will be obviated,
and there will be an additional
inducement to transfer the prefer
ence shares to private ownership.
We, therefore, recommend that
in the year 1925-26 Germany should
be required to meet peace treaty
charges out of her budget to the
extent of 250,000,000 gold marks.
If, contrary to our expectations, the
budget fails to realize five hundred
million gold marks from the sale
of preference shares we consider
that any resistant deficit could he
met by an internal loan.
"The proceeds of the transport
tax should thenceforth not figure
in the revenue side OF the budget,
except to the extent to which they
exceed ESQ, 100000 gold marks in
1925-26 and 290,O00.OO0 gold marks
in subsequent years.
Early Recovery FOreseen
at has been considered that if
for two years the budget is relieved
from peace treaty charges and a
stable currency is re-established,
Germany ought in 1926 to be MAX
ing rapid strides toward complete
recovery and should in three years,
by 1923, reach a normal economic
condition.
/ 1--WE draw the conclusion that,
allowance being made for some in
evitable growth in expenditure. the
budgets for the three subsequent
years can safely provide for the
following maximum sums:
"1926-27-One hundred and ten
million gold marks.
"1927-2S-Five hundred million
gold marks.
"192S-29-Twelve hundred and fifty
million gold marks.
ION the other hand, regard being
had to the fact that it is difficult
to estimate the recuperative power
of Germany in 1926-27 and 1929
we would propose that these
amounts should be regarded as SUBJ
ject to modification by a sum not
exceeding $4,000, 900 gold marks.
1--WE believe that at the end Of
the fiscal year 1928-29 the finan.
cial and economic situation Of Ger
many will have returned to a nor
NAL state, and that in this and
subsequent years the ordinary
budget should support the inclu-
sion of 1850 900, 900 Of gold marks.
The total sums, Therefore, to be
provided from the ordinary budget
resources would be the standard pay
ment Of 1900, 100000 plus the ad.
ditional sum computed upon the
index Of prosperity as from the
fiscal year 1929-30, onward.
I'VE have considered carefully the
question Of the amount to which the
index should be applied, and as we
are DESTROYS that in the earlier years
Of her recovery Germany progress
should not be unduly handicapped
by shortage of new capital we
think that it will be desirable to ap.
ply it to the purely budget contribu-
ton Of 1850 200, 900 Tor one-half Of
the total standard payment for the
first five years Of the application
of the index, viz: 1929.30 to 1933.34
After that date, 1934-35 the index
should apply on the full amount Of
the contribution, namely $500, 900 900
gold marks"
/ Experts View Railroads.
1--WE have conducted, with the as.
sistance of two eminent railway ex-
perts,j a close examination of the
Isituation Of the Germany railways.
1.-THE capital value of the rail.
ways is estimated by the expert y
on a conservative basis at 26 mil
lizards. They are unencumbered
with old debts, for their prior
charges were extinguished by the
depreciation of the mark and these
prior charges absorbed half the
gross profits in the pre.war period
which amounted to approximately
one milliard gold marks, in spite of
the fact that 1t was the custom to
, include in operating and mainte.
, nance charges large expenditures
which might properly have been
charged to capital account.
1.-THE railway experts are con.
WINGED and we share their convic.
ton, that under proper manage
ment, under unified control and
with proper tariff policy the
railways can without difficulty earn
a fair return upon their present
capital value.
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