No Internal Debt*

The German Government decreed that the payment of principal or interest on public debts was suspended indefinitely, "at least, until all reparation payments have been made." Thus the internal debt, already greatly reduced since the War, is virtually wiped out.

The same Government ordinance provided that all private bonds and mortgages rendered virtually worthless by the paper mark depreciation, be restored to 10% of their original gold value. This 10% (i. e. ten cents on the original dollar) is in turn subject to a 2% "inflation tax" payable to the Reich.

The German Cabinet adopted a plan whereby the State railways, postal, telegraph and telephone services will be operated independently; it being thus hoped that they can be made to yield profits.

The next Budget will be on a gold basis and was reported to show a $50,000,000 surplus, without taking into account reparation obligations.

*In 1915, the German debt was 16,954, 868,000 gold marks ($4,034,258,584). In 1922 it was 337,962,817,800 gold marks ($80,535,150,636.40).