EXTENT OF THE PENALTIES.

Auckland Star, Volume LII, Issue 95, 22 April 1921, Page 5

EXTENT OF THE PENALTIES.

BIG LEVY ON COAX. PARIS, April'2l.

A forecast of the penalties to be imposed in the event of Germany's default on May 1 includes a tax of from £2 to £2 15/ a ton on coal mined in the Ruhr basin, a tax on exports, and seizure of a proportion of the shares in industrial concerns.— (A. and N.Z. Cable.) LONDON, April 21. In regard to the occupation of the Ruhr basin in the event of Germany not fulfilling her obligations, a French commentator points out that if German miners in the occupied coal basin refuse to work Germany will have no coal, as the only other Gorman coalfield, apart from Upper Silesia, is the Saxon basin, which is very poor. This will threaten Germany with a general stoppage, which surely will compel her to carry out her obligations.— ("Times.")

Sir Sidney Low, discussing the Allies' demands on Germany, points out how the scheme means greater trade rivalry. "Under the Paris agreement, Germany owes the Allies £11,300,000,000 sterling," says Sir Sidney Low. "The amount seems—and is—enormous, and the Germans' protest that it is monstrous to suppose they can pay it. Some people in England take the same view. Eleven thousand millions! What an unheard-of sum! Clearly impossible! But we have got used to totals previously unheard of. This German indemnity is not quite 12 times the 950 million Budget which , the British taxpayer is told to expect in the spring. If we can find 050 millions in a single year, it does not seem extravagant to ask Germany to hand over £ 11,300.000,000 spread over 42 years. We are taking a mortgage on the profits and products of one of the richest and (normally) most prosperous countries in the world. An increase of German taxation of about 32/ per head of population in the first two years, rising to £4 15/ in the last 31, wiTl clear off the debt. Those who lost the world war ought not to complain too loudly at that. We—the fortunate victors—are paying our taxes at something like £23 per head! The question, however, is not so much whether Germany can pay, but whether she will." One of the most striking statements made by Sir Sidney Low is that on the effert of Germany's payment on British trade. "The annuities demanded by tho Allies are calculated in eolo. marks. But Oermanv has no gold coin. i\nd very little gold in any form, she must therefore pay directly or in-directly--in goods and commodities— coal. ores, potash, and other natural products ana manufactured articles. On these last sue will in the main rely. She cannot ■"•nrnply with the Allied demands without exponine on a very large scale. The result must be a rapid extension of her manufactures and her forcitrn trade, which extension the Allies are bound to permit, and even to encouratre, since otherwise they will not receive their annuities, and will not make as much as they would like out of the 12 per cent 1 duty they are entitled \o levy on German exports. There axe people who would j like to punish Germany by keeping down I her trade and retarding her industrial restoration. But they cannot have it both ways. Tf Germany is to be visited for her sins by beins compelled to pay our big bills for damages, she cannot also be condemned to industrial and j mercantile stagnation. If we want her money we must let her earn it in the j only way she can, which is by selling her exnorts. "Germany will have to submit to hisrher taxation: but she will have her industries stimulated and her foreign trade devived," concludes Sir Sidney Low.