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

but the committee has laid down maxi
mum and minimum limits between
which the actual amount is 10 be
found.
Section 4.
Method of work.
(a) While availing themselves of all
information the committee rejected
the method of making a detailed III
quiry of bankers and business men
throughout the world as TO specific
and confidential transactions on the
part of Germans.
OBJ Instead it adopted the following
methods:
% The committee estimated the to-
tai value of German capital abroad at
the outbreak of the war. 90 1t esti-
mated the total reduction thereof dur
ing the war as result Of adverse
trade balance during that period, adj
yances by Germany TO her allies, loss
by seCuestration Of property in ailied
and associated countries and loss
through depreciation in value OF Sc
curities. CD 1t estimated the total ac-
crctions of German foreign assets dur.
ing the war as a result o. sales OF
German securities. interest accumula-
tions. sale of gold and profits real
lied from territories occupied by Ger
many.
lei The foregoing calculation result
cd in an estimate of German foreign
holdings at the. time OF the armlstice.
Id Since that date until December
81, 1923. methods of increase OF for
eign holdings have been as FOL
lows:
a Chiefly the direct sale of paper
o,1 haut cradit lol the
sale of goods, real estate. precious met
ais: (3J interest on accumulations,
tourist expenditures, foreign money
expended by armies of occupation IN
Germany; "a remittances from Ger
mans abroad, earnings of transporta..
ton companies for transportation OF
foreign goods, insurance profits, etc.
(e) The causes of decrease since
the armistice have been as follows:
% Purchase of imported goods; 90
cash payments to the allies under the
treaty of Versailles; CD German tour
lists expenditures az interest on Ger
man securities held abroad.
90 In making all computations the
committee had not relied on official
reports of German imports and ex-
ports but has revalued the commodi,,
tics on the basis of current world
prices at pertinent dates.
(g) The result OF all the foregoing
calculations gives German foreign
holdings as of December 81, 1923.
Section 2.
Estimates figures.
(a) Assets abroad in 1914 belong
ing to German nationals residing IN
Germany estimated at twenty-elgnt
milliards gold marks.
(b)-The war period. (1) Deprecia-
ton of German assets abroad; nom
payment of interest due and liqulda-
zion and seuuestration measures re-
suited in loss of approximate III
milliard gold mark. CD During the
war profits and exploitation OF BEL
gian. Northern France, Poland. lith-
uania and Roumania appropriated %
to six milliard gold marks; and the
sale of gold and of German securities
aggregated approximately two milliard
gold marks.
(c)-Post war period. "a Principal
causes of reduction deficit in Ger
many's trade balance and the meeting
of cash payments to the allies under
the treaty of Versailles caused ieduc.
ton between nine and ten milliard goiN
marks. Earnings from German SHIPS
ping, insurance, etc, greatly reduced
| CD Principal causes OF increased as
sets. (2) Sales of mark credit bank
balances and paper marks resulted IN
profits of between rs and 81 milliard
gold marks. German marks purchased
BY citizens of many countries ana
more than million individual ac-
counts were found in German banks;
(b) Sales of gold aggregated one and
a half millird gold marks. (c) Sale OF
German real property and securities To
foreigners approximated one and
half milliard gold marks.
Section 8.
Conclusion as to amount OF Ger
man foreign held assets.
(a)-The committee estimates that
German capital abroad of every KIND
whether liquid or in permanent in
ycstments was not less, on December
81. 1923. than 81 milliard gold marks
and not more than rs milllard goli
marks. and il thinks the middle fig
IRE of S.TJ milliard gold marks is the
approximate total. This figure by COM
| parison with the 1914 estimate OF
German foreign holdings. shows Il re-
duction in foreign holdings OF APP
proximately 81 milliard gold marks
| (b)-In addition to the foregoing,
| foreign currency now in Germany ap-
proximates 1,200.000,000 gold marks.
(c)-It must be remembered that
foreigners hold property in Germany
which has counter-balancing effect
and the committee estimates the value
| of such property ms from one to one
| l,lf .,.l ,,n1I rlye
| Section 4.
| Conclusions as to means or BRING
ing exported capital back to Ger
| many.
(D-Flight of capital was result
in the main of the usual economic
factors. namely, the failure to balance
the budget, initiation and the raising
of large national loans but it was ac-
centuated by the attitude OF the Ger
man people toward the payment OF
Germany's war creditors and was
marked by ingenious devices TO evade
restrictive legislation. 1t was also
influenced by the action of spectators
and timid investors.
(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 stated this demon
strates the ineffectiveness OF restric-
tive legislation and the committee
feels that it would have been ihef-
fectivc whether or not the laws had
been fully enforced.
| (c)-The only way to prevent cvo-
dus fcapital and encourage return is
to eradicate fundamental causes. 1nfla-
ton must be permanently stopped.
The budget must be balanced and a