LEVY ON CAPITAL.

Taranaki Daily News, 1 November 1919, Page 11

LEVY ON CAPITAL.

THE GERMAN PROPOSALS.

London, July 2.

So much lias been hoard of late in Britain about a levy on capital to pay the cost of the war, that much interest is being taken here in schemes of this nature, which are now under consideration by the German Minister of National Economy., It is assumed that a large levy on capital (not merely on the wealth of the war profiteers) is certain to be made in Germany. Certain industries, such as those of coal, and possibly raw material, are supposed to be "ripe for socialisation," buti in the greater number, of cases the German authorities appear to think that private enterprise is not only valuable, but can be utilised by the State. Sucli undertakings are to be absorbed by the. State gradually. The assessors of taxation are to have the power of requiring payment not in money or in war loan, but in the shares of the companies investigated. No future sales of stock to private Holders are to be made, bo that control and ownership will gradually pass to the Government of the realm and to the States. A new "Bank of State Property" is to be created, and this is to guarantee dividends of 5 per cent., and to have very drastic powers over the undertakings in which it becomes interested. The "German People's League of Uncontrolled Commerce" maintain that the scheme is an unworkable compromise between socialisation and free industry. It is not socialisation, but State capitalism, and that on an unsound financial basis. The only lucky parties will be the Federal States, who will have secure dividends and tione of the risks. It will destroy private enterprise, for "the Government pigs will rout in every private undertaking and will pick out all the truffles." The Vorwaerts complains that German capitalists, especially 011 .the left bank of the Rhine, are doing their best to get their money out of the country. As much as 250 marks are given for 100 francs in order to secure foreign money.