The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1924-04-10
BRINGING BACK
GERMAN MONEY
is PROPOSED
CONTINUED from page y

caused reduction of between nine and
ten mlliard good marks.
Earnings from German shipping,
Principal causes of increased assets:
(A) Sales of mark credit bank bal
ances and paper marks resulted in
profits of between rs and 81 mil
aiard gold marks. German marks pur-
chased by citizens of many countries
and more than million individual
accounts were found in German
banks. G0-Sales of gold aggregat-
ed one and half milliard gold
marks. (C)-Sale of German real
property and securities to foreigners
approximated one and half mil
lard gold marks.
"Section 3. Conclusions as to
amount of German foreign held as
sets:
"(A) Committee estimates that
German capital abroad of every kind
whether liquid or in permanent in
vestments was not less on December
81, 1923, than 81 milliard gold m"lks
and not more than rs milliard geld
marks and it thinks the middle fig
ure of CTS milliard gold marks is
the approximate total. This figure
by comparison with the 1914 est
mate of German foreign holdings
shows a reduction in foreign hold
ings Of approximately II milliard
gold marks.
Cob In addition to the foregoing,
foreign currency now in Germany
now approXimateS 1000 ,000, 600
marks.
"(C) 1t must be remembered that
foreigners hold property in Germany
which has a counter balancing effect
and the committee estimates the
value Of such property as from one
to one and half milliard gold
marks.
Conclusions
SECTION 4. Conclusions as to
means of bringing exported capital
back to Germany.
"(A) Flight of capital was a re-
suit in the main of THO usual econ
omic factors, namely, the failure to
balance the budget, initiation and
the raising of large national loans
but it was acccntuated by the atti-
tudc Of the German people toward
the payment of Germany's war cred
! itors, and was marked by ingenious
devices to evade restrictive legisla-
ton. 1t was also influenced by the
action of spectators and timia in
veStors.
"(B) Neither legal enactments
nor severe penalties hampered the
flight of capital or resulted in the
disclosure of assets abroad. Under
the economic conditions above stat
ed this demonstrates the ineffective
ness of restrictive legislation and the
committee feels that it would have
been ineffective whether or not the
laws had been fully enforced.
"(C) The only way to prevent
exodus of capital and encourage re-
turn is to eradicate fundamental
causes. Initiation must be perman-
emily stopped; the budget must be
balanced and bank of issue on a
sound basis established.
"(D1 The committee knows the
conclusions of the first committee
experts and if effect is given to their
recommendations, it thinks that con-
siderable part of German assets
abroad will return to the ordinary
course of trade.
"lE) Austria is case in point
where under a stabilized currency
the necessities of trade bring back
existing foreign holdings.
"(F) While believing that special
legislation is not required when a
country's finance is on stable basis,
nevertheless during the period of
transition the committee suggests
that Germany might grant an amnes-
ty for limited time to those bring
ing their capital back, who violated
German law in sending it abroad and
that special terms be offered for
subscriptions to government loans
which are made in foreign curren-
cieS -