Berlin, Mar. 24
INANCIAL methods in a plan to aid the German Government meet extraordinary armament expenditures, was published here today.
Present taxation, although increased from Rin. 6,800, 000,000 to Rin. 17,500,000,000 since 1933, is insufficient to cover Germany's expenditure, announced the Finance State Secretary, Herr Reinhardt.
The Greater Reich will therefore issue "taxation bonds" which the various trades and industries will be compelled to subscribe as advances on returns due only in the following years.
Phe State will pay no interest on these bonds, which will serve to finance arms and national equipment needs. Loans will be. floated only under exceptional circumstances the future, the plan provides, Loans, it was pointed out, considerably increase the difficulties of the Treasury.
The bonds bearing no interest will avoid raising new obstacles.
The Reich's local communities, railways, posts, autostrades and other institutions will be permitted to pay with these bonds for as much as 40 per cent of their orders placed with private industries.
Herr Reinhardt emphasized that the new financial scheme will permit the German Government to continue extraordinary expenditure "for several score years." A deficit will Appear at first, but this will be compensated by supplementary income tax and by economies on administra tive expenses, he stated.
This new pian will anier into effect on May 1 and will apply to Austria and the Sudetenland,
Text read from the printed page and cleaned; old type leaves the occasional error.