| Show Great Problems l Discussed by Authorities 0 4 d WORKING OUT GERMAN REPS REp REP- S PAYMENTS By DR PETER p. p Minister of Finance The beginning of the fourth fourthS S year of the Dawes Plan renews discussion ot of this method ot of securing German S 1 payments and gives great timeliness to this forecast for forthe forthe the future by a German financial finan- finan cial authority There is no doubt that that Germany for the the time being and in the the n near ar future will her obligations as arising from the Dawes plan B But Butwill t twill will Germany be in the long run in ina ina a position to raise the necessary sums My ly personal opinion is that thal as asfar fat far as we can can survey the future Germany would be able to make provisions for the reparations burdens burdens bur bur- dens under three conditions of w which i h the tho first depends on Germany Germany Ger- Ger many alone the tho second depends orly ly in part on Germany and the third is entirelY dependent on the world trade The first condition is that we in Germany Germany- wor work put out our taxation system in such a manner that all taxes that handicap production and thereby constitute a a. a serIous J menace menace men men- men men- ace for our ability to compete on the world markets be cast aside The Dawes plan charges will In inthe the long longrun run make it necessary to resort resort re- re sort in Germ Germany ny to very high taxes but the economic success of the tax reforms of the year 1926 strengthens me in my belief bellet that we may develop our taxation system tern tem at the same time exercising the utmost economy in all public expenses so that our economic structure may maj bo be able to bear these taxes if the general commercial situation situation sit sit- improves The second is that sufficient suf- suf capital at reasonable interest interest inter inter- est becomes available to our economic eco eco- structure so as t to keep it on ona ona a high technical level In this connection connection con con- a a. great grat deal or of progress has been made through the rationalization tion measures of at these thes last few Years and I believe that further progress is to be made mado along this path At the same time we shall have to solve the question of standardization stand stand- such as it has been solved in America with conspicuous success success But rationalization and standardization standardization standard standard- requires very large capital investments It is a mooted question ques ques- tion a far as the formation of new capital is whether subtraction subtraction sub sub- traction of a yearly sum ot of 2500 million gold the marks standard payment under the Dawes plan plan- will not constrict our m money ney market marlet marletto marketto to such an extent as to make sufficient sufficient suf- suf financial reserves reserves' unavailable unavailable able for industrial investment In any case Germany if German industry industry in- in wants to keep pace with technical technical- developments will be compelled to borr w foreign capital I Ifor for the technical improvement improvement- or of ort orI I it t Jn a quil- quil nt m tl the e lon long run runIs runIs Is something that only experience can teach us The third condition is that we succeed in utilizing to Its full extent our Industrial equip equip- m ment t Thil Thi will be possible only it if there is added to the internal c consumption in Germany which due i f the lack of at capital arid to th c comparatively low salaries and wages rises buts an increasing ing export to foreign countries It Itis Itis is clear that the matter depends to toa a large extent on the custom tariffs of the c countries which import our goods All these questions are of a very serious nat nature re and under the circumstances circumstances cir cir- the question or of whether Germany in the long run rtin can bear bearUP bearup up with such a taxation pr pressure cah at the present moment be answered answered an- an definitely neither in the affirmative n nor r in the negative My opinion is that we are to reserve our judgment until sufficient experience experience ex- ex las has been gathered in this I field which is entirely new ground Nevertheless however wever matters might develop in this connection orie one thing I can state with all definiteness definiteness and P without ny reserva- reserva Germ tion-Germ Germany tion-Germany ny wm will bend all her efforts in order to fulfill her gati r ris s und i the Daw Dawes s plan and will effect as heretofore the paYments itO be made under such plan to the general agent Copyright ht isi Cosmos N Newspaper News News- ws- ws paper Syndicate Inc |
