MAKING THE POOR PAY

Evening Post, Volume CV, Issue 109, 9 May 1923, Page 13

MAKING THE POOR PAY

GERMANY'S TAXATION METHODS

DEPRECIATION AFFECTS SPEND. ING POWER.

The Social Democrats are in open opposition to the taxation policy of ths Government, declares the Berlin correspondent of the "Manchester Guardian."- They assert that the depreciation o£ the mark is not sufficiently considered in the new Taxation Bill. The Bourgeois bloc is strongly united against the Social Democrats. Its Bill is even more lenient to the capitalists than the Government's Bill. It proposes that the highest tax on fortunes shall be levied on fortunes of 60 millions, whilst the highest assessment proposed in the Government Bill begins with fortunes of 20 millions.

"Real values" and hoardings of foreign currencies sire assessed at a very low rate in the Bourgeois Bill. Hoardings of dollars are asßeased at the average exchange rate for the. year 1922, that is to say 30, whereas debts in foreign currency can be deducted at the exchange rate prevailing at the end of tho year 1922, namely, 7COO. The Sociai Democrats brought in an amendment to obviate this inconsistency, but the amendment was rejected. Tho same differences have been called forth by the wages p_olicy of the Minister of Economy. Arguing that high prices are caused by high wages, he insists'that wages shall not be. raised. The Social Democrats, on the other hand, argue that the tremendous depreciation of real wages set in about the middle of last year. For instance, in December,. 1922, compositors' wages dropped 57 per cent, balow the minimum living wage. This depreciation of wages and salaries has produced such a drop in purchasing power that unemployment has resulted. In January the percentage of short-time workers rose to 13 per cent. It is calculated that in January at least two million •workmen were either unemployed or weie working short time. The Minister of Economy is trying by the reduction of wages to avert further unemployment. On the other hand, the Socialists assert that if the purchsing power of the great (oass of consumers is raised unemployment can be averted.

The trade unions sent^a deputation to the Chancellor, and were assured by him that the regulation concerning wages shall not be applied to all industries, as some wages have not yet adjusted themselves to the price level. But,there in growing resentment. The >Socialist leader, flerr Web, speaking in Magdeburg recently, violently attacked the Government's policy ._ ' "A united front with the Bourgeois it impossible as long as they think more of their purses than of their country, and support a taxation swindle whioh places the whole burden on the back of the workmen." The resentment of the Socialists is so great that even their concealed discontent with the Government's foreign polioy is openly displayed. In the same speech Herr Wels_ denounced all those who dream of driving the French out of the Ruhr by force of arms, and continued: "Like the world> war, the invasion of the Ruhr must be ended by negotiations some time or other. The German Government must clearly, and unambiguously proclaim its' willingness to negotiate. This clearness was lacking in Dr. Cuno's speech in the Reichstag. Dr. Cuno said simultaneously, 'Germany will negotiate,' and 'Away with all talk of negotiations.' The Foreign Minister wraps himself in complete silence," continued Herr Wels. "That is very deplorable, because the door is clpsed on all hopeful 'symptoms. Tho German people demand clearness. The profiteering of the German capitalist is an internal danger, and Labour will fight against it even if the French are in the land."