GERMAN FRAUD

Shannon News, 18 May 1923, Page 3

GERMAN FRAUD

There is in Germany a tax of 40 per dent, on. the pit-liead value of coal, collected from the customer at the pit-mouth. It is paid by the nailing magmne in mark notes. As these notes tall in value with almost mathematical regularity each month, ih'e German Government lose it the tax is not paid over to it at once. Yet die German Government have for at least Hie last lour months been permitting the German mining magnates, to pay over only a pert of the tax, retaining the rest in their pockets, for payment at some date later.

'The net result of this process was to keep the German revenue down (thus leaving no> money for reparalions) and to give the German magnates millions to place in credits hbroad. In September, of 5000 million marks collected by ihe mining magnates, /|6OO millions was kept back, and only 400 millions paid over to the Government. The effect of thus delaying payment has to be studied with reference to the steady fall in die mark. The figures are almost amazing:—

Value of 4600 million marks in Sept, (13,000 to £1) 353,000 Value of 4600 million marks in .Tan. (05,000 to £1) 45,000 Gain to the German multi-mil-lionaire hv delay 305,000 As the some process continued in October. November, and December no wonder ran he felt that the reparations cupboard is hare; or that the German magnates’ pockets are admirably lined.