San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-09

4
| debt charge ought to be met common
surate with the burden of the French.
English. Italian and Belgian taxpay-
ers. 90 The treaty recognizes this
principle. "a 1t is morally sound.
| 90 1t is economically just in its in
| fluence in costs of products. 90 This
principle has been applied to the full
limit of practicability.
(c) Allies share in Germanys pros
perity. ~ Germany's creditors must
share in the Improvement in Ger
many's prosperity. CD This will be
secured by an index of prosperity.
Id There is an important differ
ence between the Germans capacity TO
pay taxes and Germany's capacity to
transfer wealth abroad.
Resources From Which Payments
Made.
Germany will pay treaty charges
from three sources: (a) taxes; (b)
railways: (c) industrial debentures.
(a) From her ordinary budget !;
% The 1925 budget may be bal
anced if it is free from peace treaty
charges: (2) the 1925-26 budget. re-
ceiving 500,000,O00 gold marks from
special sources. may pay that sum for
reparations; 90 the 1926-27 budget
40, 100000 gold marks; az the 1927
IS budget 50O.000,000 gold marks
(about points and 4 subject to addi-
ton or reduction in certain contingen-
cies): (5) the 192S-29 budget 1,250.-
100000 gold marks. This is consid-
cred a normal year and n standard
payment hereafter. Additional pay
ments will be made depending on pros
perity.
(b) From railways: % railway
bonds: (a) eleven milliards OF first
mortgage railway bonds against a cap
ital cost of 20 milliards will be ere
ated for reparations. OBJ These bonds
bear ) per cent interest and l per cent
sinking fund per annum.
(c) In view of reorganization in
terest is accepted as follows: 1924-2J,
$50, 000, 900 gold marks: 1926. 1914
100000 gold marks; 1026-27. 5l). 000,-
600 gold marks: 1929 and there
after, 100000 gold marks. Be-
hind the bonds there will be created ::
Two milliards of preference shares to
be reserved for sale TO the public and
| thirteen milliards of common stock.
Three-f ourths of the proceeds of the
preference shares will be applied as re-
quired to the payment of debt and for
capital expenditure of the railways.
The remaining 500,000,00O of prefer
ence shares and all the common shares
20 to the German government. (2)
Transport tax. After 1926. 29O.-
100000 gold marks per annum for
reparations and the balance TO the
German government.
Id Industrial debentures. % five
milliards of industrial debentures are
provided for reparations; (2) the re-
sulting charge on industry is less than
that existing before the war and now
| wiped out by depreciation 90 these
bonds bear per cent interest and 1
per cent sinking fund. Id Est, 300.-
100000 gold marks per annum: az
pending economic restoration interest
and sinking fund are accepted as fol-
lows: First year nothing. second year
12J, 900 ia gold marks; third year.
80. 100000, thereafter 3OO,00O,O0O
gold marks.
Provision for Treaty Payments.
(a)-1) Budget moratorium pc
riod. First year from foreign loans
| and part interest on railway bonds
| there will be total OF 1000, 900, 00C
gold marks; second year, from part
interest on railway bonds and on in
6ustrial debentures. from a budget con,
tribption through sale of 50000O,00O
railway shares, total of DO, 00O, 00C
gold marks. (2) Period third year
from interest on railway bonds and
on industrial debentures, from trans
pOIt tax and from budget, total OF
/, 200, 100000 gold marks subject to
contingent additions or reductions OF
go, 100000 gold marks. Fourth year,
/ from interest on railway bonds and on
industrial debcntures, from transport
| tax and from budget, a total of LOO
100000 gold marks, subject to con-
| tingent additions or reductions of 30
100000 gold marks. 90 Standard
year. fifth year, from interest on rail
way bonds and on external debentures
| from transport tax and from budget
a total of 300. 100000 gold marks
thereafter 2,500000.000 plus sum
computed on the index of prosperity
Interests on the securities but not the
D. oceeds of their sale is included in
these figures.
Oh The first year will begin Ia
run f. ON the date WHEN the plan shall
have been accepted and put into ef
| fevtive execution.
Inclusive Amounts. Deliveries i'm Kind
"a The above sums cover al
amounts for which Germany may be
liable to the Allied and associated
powers
81 Deliveries in kind are TO be
continued but are laid for out oil
balances in the bank.
How Annual Payments Will Be Made
ta) The amounts will be raised in
geld marks and paid into the bank
| tb) these payments cover Germany's
international obligation.
How payments Viii Be Received.
(a) GCrmany's creditors will use
these monies in Germany or convert
them INFO foreign cdrrencies; OBJ ex'
! perience will slow the rate and ex
tent to which the conversion can safely
take Place; (c) the risk to stability
through excessive remittance is obviat
cd by transfer committee Id sums
not RENTED are accumulated but with
a limitation of amount.
Guarantees OF Revenue.
Ca) The following revenues arr
pledged foi continuation of collat
eral security for budget contribution:
and other payments: (1) Alcohol, CO
tobacco, 80 beer, (4) sugar, 90 Gus
toms.
(bJ The yield of this sort of reve
nues is estimated TO be substantially
in excess of required payments.
tc) Ire excess is returned TO thu
German government
| EfxNaYnuI n TA..Istsa.. al d., 80.
: Foreign loan of S00,000,000 golt
marks meets double purpose: Ia
Requirements of gold reserve of new
: | hns