THE BOOMING BANKRUPT

Hokitika Guardian, 28 April 1923, Page 4

THE BOOMING BANKRUPT

HOW GERMANY TRICKS THE AI.UES. LONDON, Jan. 31. All wild would understand the methods by which Germany is at one and the same time defrauding the Allies and underselling our industries would do well to read a pamphlelt just published : “What is Germany Doing E’ It in the result of three months’ investigation in Germany last year by .Mr E. Surrey Dane, a graduate in economics of Birmingham University, on behalf of .Mr T. il. Johnson, of the Briston Pottery Works. It is, that is to say. a business investigation lui a a business man. German tames. Mr Dane remarks, are •'jiivtuiesque'' on paper, but t hoy The income tax for lbiii) lias not wen vet been assessed in some Statics. The proli!cer is dodging taxation to a rcmui liable extent. The prevailing laxity Ims made the Gcrnian people experts at procrastination and evasion ; lax-morality has reached a stage of absolute dishonesty. Taxes arc assessed and not paid promptly; they become a mere irilte later on when the mark has dropped further. German profiteers either send their money abroad or put it into new lactones and machinery. Capital construction is being indulged in on a colossal scale ; one sees new factories and buildings, the latest machines and improvements everywhere. . . . We have the anomaly of a bankrupt nation preparing for the greatest building boom on record, (‘(pupping a floating' exhibition ship to capture foreign markets, and inaugurating huge canalisation, electric power, afcd other schemes. As for tin- depreciation of the marl;, it ha s acted so far as a stimulus to (hu man development: Industry is full up with onVr.-

montli. ahead aval is working at top pressure as far as a serious coal spoilage will allow. Meanwhile everything is.s-.b'ie is being dime to create a period industrial machine for future de-

velopment . WHERE PROMTS GO. hi German foreign trade all I lie pro lit except a lit! per i out .lvparat lev tax finds its way into the pockets nl 1 lie indusi i iadis! ■ . I; i ■ a disgrace the! the German Government. however helpless, should a Holt the.', supergains to remain untouched by fatin' tioii. The" Allies should in.-ist dial they be ndv.jualclv super-1 axed and I'.-e.t for stabilisation (of the mark) and feoa rations. The problem may appear difficult, but it I • l elativeli rii sy. There i- a eeiunmn fallacy Dial Germany eeoiiot purchase mv materials. The is 1.1 pre-cot the largest buyer el wool, copper, and, lard, and the s'* -uid la ree-t buy or o' cotton and gra n. Idir! iierimire. far from being imahle In -•rcilir supplies, she is ac f ually purchasing bilge blocks of properly abroad. Mr Dane’s ennclusiotis have a direct bearing ,n the ore- ell! posi lion ; Germiiny, viewed as a smaller nation, Is basically wealthy. Her present financial policy. scon, lor example. in lie. depreciation of the mark, ini- not i ;dv given leg- g fi;m hold on the v.ae-ld markets leit also large holdin ■ o 1 foreign eu rrctlcica. (■. wwev he . all tile visible dens ~(' pr "P'udt v. It is true that to some p ■ d r.i eg I-::’.--1e ue, wei'di < ven a ei is; - v. add ul'.iinaiely i-evi intact. 1 1 i v d iisd ii. a - disi iiu-t from fiitnneiel el edit. is Ihe rapacity to produce and deliver good.-, when and where repaired, then Germany is accumulating a vast re: erve of real credit lor use ill i'll, lire couil'Ct limn. I lellce it cannot he doubted (bat, even allowing lii possible trouble ahead. Germany i- oil the high road to prosperity as