1924-01-09 — Page 2

Page

DCL

MAKERS

Aistillers Company 4

EDINBURGY

THE HONGKONG DAILY PRESS, WEDNESDAY, JANUARY 920, 1924

"D. C. L. "

MALT EXTRACT

with

CAPITAL LEVY. EXPERIMENTS ABROAD.

HARMFUL RESULTS.

Bill was introduced by Herr Erzberger in 1919. It was a modest nieasure, and its originator, who was a competent daan- cier, only attempted to justify it as being Bent Two forms of patriotic are instituted, one on capital levies were

a .non-recurring capital and the other

The countries where a capital levy has been enacted or proposed are: Czechowar levy on intronses in property values; Slovakia, Germany, Austria, Italy, Hon but these were nullified by the deprecia gary, Poland, Greece, and Switzerland. tion of the mark. In 1929 the Repara- harm than good.

In our New Premises

OLD POST OFFICE SITE

Peddar Street.

COD LIVER OIL it in SWATOW TRADING CO.

Is made from the finest selected Barley and malt. ed with the greatest care on the Company's own premises by the most scientific methods of

manufacture.

THE DISTILLERS COMPANY, LTD.

EDINBURGH.

PRICE: Per 1 lb, Jar... Per 1b. Jas...

SOLE AGENTS.

$1.00. 1.80.

HANDE, PRICH & CO., LTD.,

Tol Contral No. 135.

No. 8, QUEEN'S ROAD CENTRAL.

DAIRY FARM NEWS.

An opportunity for those who prefer

HONEY SUCKLE BUTTER

(Made at the Farm).

Standing orders now being booked.

STILL TROUBLED

WITH MOSQUITOS ?

You should use

LOTOL.

SPRAY FREELY.

Obtainable all reputable Stores.

LIGHTING

We shall be pleased to submit designs for any Special Work.

ARCHITECT'S DESIGNS CARRIED OUT-IN DETAIL.

FITTINGS FOR EVERY STOCK PURPOSE IN

ELECTRICAL DEPT.

HONGKONG HOTEL The Hongkong & Shanghai Hotels, Ltd..

DRUGS

PRESCRIPTIONS

When the Doctor prescribes he expocte the Draggist to 911 the prescription with Fare Drugs. The quality of ur Drags Medicine and Tollat Goods a nob Lurpared Have the Doctor's Prescription filled nere and the result will he ustinfactory!

THE PHARMACY,

Can RED BUILDING (OPPOSITE Ion Houza Br.

An exception is, perhaps, Czecho-Slova kia, where the conditions were unique (as wil

appear hereafter), and where, more over, the measure was applied with great akill and with suddenness-an important In Switzerland, where it was point. talked about for months and a plebiscite was taken on the subject, the were threat of. its imposition (in the words of the official report of the British Commercial Secretary at Berne) caused a good deal of financial and commercial disturbance, such as export of capital abroad, runs on load savings banks, a greater or less fall in all Government bonds, banking and industrial shares, other signs of the approach of panic, u auheaval, in the domestic economy of the country."

Even in "Czecho-Slovakia it achieved its partial success because, in effect-as dis- tinet from theory-it became an irregular tax on property payable not from capi- tal at all, but mostly from income, and partly from the national Boating debt, which was then being converted from Austrian into Czecho-Slovak euri Czcebo-Slovakia is the only country has tried the experiment at the time when it was creating a new currency, and the combination of circumstances was very cloverly exploited by the able Finance Minister. Dr. Rashin, who was the author of the scheme.

any money from Germany, notified the Government of the Reich that if they could not raise money otherwise they examine the measures necessary should to effect a capital payment by other in means, in particular by a lovy on the movable and immorable property' Germany."

The German Government accordingly passed a Bill to raise a compulsory loan, which in six months produced 224,000 million marks The mark quickened its pace on the road to worthlessness while the tax was being collected, and that sum now represents a negligible total trans- lated into British values.

At the most desperate moment of its financini career the Austrian Government alsa adopted the principle of the capital levy. No salvation came from this panic measure sad when the League of Nations took over the administration of the country it would have nothing to do with it The Leaguo adopted other remedica, which have been on the whole remarkably successful-Times. P.&O.BANKING CORPORATION

LIMITED.

(INCORPORATED IN ENGLAND 1920) with which is affiliated THE ALLAHABAD BANK, LTD. INDIA.

bab

When the war led Bohemia bad no

AUTHOKIAND CAPTITAL Currency of its own, Austrian paper STISURIRED AND PAID UP..

HEAD OFFICE

MANUFACTURERS

Of Hand-made Chinese Linen Drawn-Work and Embroideries, Dealers in all kinds of Silk Goods of the Best Quality, Cluny, Filet, Venetian Point, Honiton Point, Renaissance Foint, Irish Crochet Laces and Collarettos, Waists and Dresses from the Latest Franch Patterns, Mandarin Costumes of Various Designs, and Powter-Ware.

WHOLESALE AND RETAIL.

1.

Inspection Cordially Invited.

Telephone 3309.

A Galaxy of Bargains.

CAMMELL LAIRD & Co., Ltd.

£5,000,000 £2.594,160

£118,000

TRADE MARK

122, Leadenhall Street, London, EC. a.

money being used as the media of ex-REVE FUND

ia change. The Austrian crewn already 1919 showed a tendency to fall precipi tately, and Dr. Rashis determined to save Bohemian finance by a bold process of amputation. On a certain date (Mrch 1st, 1919) the frontiers were closed, with- Within that out notice, for five days. period all were obliged to bring their paper-notes to be officially re-stamped as Their nominal Czecho-Slovak currency. amounts were halved, their value doubled.

It was thus to the interest of every one to obtain the new currency: and for the hall-amount deducted and withheld by the State receipts were given to the owners of the notes. These receipts were afterwards accepted by the Government in payment of the capital levy. In this way the burden of currency reform was cleverly divided between individuals and the State, and depreciation was arrested, to the ultimate advantage of both.

XO REFUGE ABROAD. The floating debt formed at that timo the chief item of the national financial obligations, a situation wholly different, of course, from that which prevails in a country where the National Debt is in more permanent form; and the artificial prosperity which everywhere followed the war still made money-which was "miz- taken for wealth-plentiful. A year later, on April 8th, 1920, Dr. Rashin carried through the Chamber the capital levy He made the value of property for the purposes of the tax assessable not at a future date, but as at March 1st of the previous year (1919). There was thus no inducement to capital to take refuge abroad; and in any case in the dislocated conditions of Central Europe at that time but little foreign trade was being done by Czecho-Slovakis

WEST LONDON BRANCH: 14-16, Cockspar Street, London, B.W. 1.

EASTERN BRANCHES:

Singapore, Sugang and Shanglad. Bombay Cake Lachi, Madras, Jolinas,

The Corporation undertakes General Banking and Exchange Business of every descripties and addition to its Branches has Agencies in al the prinsipal Cities of the world,

C. CHAMPKIN,

Manager. $5, Des Tax Road Central, Hongkong.

RUSSO-ASIATIC BANK.

CAFIPAL (FULLY-YAID) RESERVE FUND

CHINESE GOVERNMENT CAPITAL CONTRIBUTED (ET THE

RESETE FUND

Hon bles 55,000,000

Sheffield, Birkenhead. London, etc.

HIGH SPEED STEELS BEST CAST TOOL STEEL MINING STEELÄ SHFAR STEELS FILES AND RASPS

13, PEKING ROAD, SHANGHAI

Hotels

JAPAN AND

MANCHURIA

Members of Japan Hotel Association

c/o TRAFFIC BURKAU, Dært. of Railways, TUKIO

Average Hates for Bingle Room's (without Bath) including mosla Y. 10-13 in cities and soms popular rosorts. Y. 8-10 to country districts.

IN JAPAN PROPER -

Chuzaji (Nikko) — !!

Kyoto

Lakeside Hotel

Kyoto Hotel

Kamakura: 3

Kainin Hotel

29,980,000

Kup. Th

A

3,500,000

Karuizawa mume

Masa Hotel

F

1,750,000

HEAD OFFICE! Paria 9, Rue Boudreau,

· LONDON OFFICE A

44 Uld Broad Street, E.0.2.

L

BANKERS : T Losbox; Mesars, Glyn, Mills, Currie & Os,

Favoriser Bosiets Generalo pour 1: Developpement du Commerce at de lindur trie en France.

PAR: Societe Generale pour Favoriser Ir da Commerce et de l'Indus Developpement crie தா

Banque de Paris et des Pays-Bas Lross: Bociete Generale pour Favoriser & du Commerce et de Pładu.

trie en

De Irving Bank-Calambis

NEW YORK:

Trust Company

BAS FRANCISCO: The Crocker National Bank

of San Francisco.

BRANCHES IN ABIA 1.

It was thus possible to collect at once a considerable sum. The Act divided the levy into two parts-(a) the capital tax proper, levied on the total value of pro- perty; (b) the increment tax, levied on its increase between January 1st, 1914, and March 1st, 1910. The latter tax was, Changchen Hankow Manchouli Tinala

Harhin Newabwang Uramtchi of course, aimed at war fortunes. The Chalog

Hongkong bal

Yokoham of the levy were thus officially Dairen purposes indicated:

Hailar Kashgar The tax on property and the tax on. the increase to property are intended in the first instance as a basis for the future adjustment of the currency and for settling the obligations taken over from

Foreign Exchange on the Principal Cities of the Austro-Hungarian Bank. The surplus will be used for defraying the most urgent the World bought and said.

L. BAINES, expenses incurred in founding and in-

6373 augurating the independence of the Czecho-Slovak State, but excluding the current deficits of the State finances. The financial administration must keep its accounts of the sum received in re- spect of this tax as a separate item from the rest of the State revenues.

The total liabilities were made payable within a period of three years; and it has been found progressively more difficult to collect the tax. So much is this the case that a new Bill is now before the Prague Parliament of which, the purpose is to lower the scale of assessment made in 1920. Even then the original assessments were low. Values in 1914 had, of course, all been reckoned in Austrian money, and the national pride of Czech officials in 1920 led them to estimate at a fictitiously

the Crecho high rate the superiority of Slovak over the Austrian crown. Through out the application of the tax great leniency has been shown in its collection. The financial reforms of Dr. Rashin pro duced deflation of the currency, with the usual consequences of a fall in prices, curtailment of industry, and unemploy ment. The banking interests seemed at the time to be the principal gainers, and it is one of the ironies of history, that the man who the least unsuccessfully carried through a plan of the capital levy was assassinated by a Communist fann tic as having brought misery upon the working class

BONGKONG BRANCH; Interest allowed on Current Accomm.bs and Fixed Deposita. Terms on application. Loos) Bil discounted.

Manage COMMERCIAL

INDUSTRIAL AND

BANK LTD.

HEAD OFFICE 1 Vol Building, Chater Road, Hongkong

Bylance A Shanghai-51, Kiangue Road. Hankow-British Conoverian.

CORLEONDENTS 'IN

+

London, New York, Chicago, San Francisco Vancouver, B.C., Bonohula, Singapore, Ferang Tientsin, Bwat w, Macao, Canton and wil Come marcial centres of China and abroad,

PROMPT SERVICE Attractive rater for all kinds of Deposits enquirie are welcome.

THE HAL

1969

THE CHINESE MERCHANTS

BANK, LTD.,

司公限有行銀商華

·HRAD ORFIOR

Alexandra Buildings, Obster: Morë,

|ENERAL Banking and Exchange

business franesoted,"

Loans granted on approved securitisa. Current Accounts opened and fixed Deponite received at rates which may be

certained on applisation The Bank led conducts = Bavingu Departmani.

KL. 10. EAU. Chief Manager.

881

When in doubt about yODE SYSH

ör your glasses #

Consult

A DISAPPOINTING YIELD. This capital levy has brought in alto- gether some £20,000,000 of which hardly anything bas come out of capital. That amounts to about one-sixth of one year's national revenue, President Mazaryk the other day in London expressed his disap pointment at the way the proceeds have fallen short of the anticipated yield. am not very satisfied with the result, he said;

"the

seemed to disap pear."

If President Mazaryk is disappointed, how much greater must be the chagrin 67, of those responsible for the experiment elacwhere In Germany, a Capital Levy

CHINESE OPTICAL CO

Eye-sight Specialists. QUEEN'S ROAD CENTRAL

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Nikko Hotel Onaka-

Orks Hotel

Shimonosekitar Can-ye HotelTM

IN TAIWAN (FORMOSA) Taibok-Talwan Ballway Hotel

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CHAMB

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#

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WORLD THEATRE

JANUARY 9th to 12th.

LEAH BAIRD

in

THE HEART LINE"

Also

JUMPING BEAN". Out of the Inkwell Cartoon Comedy.

ADMISSION,-9,15 Px-$1,20 & 80 cz,

5,15 PX-80 A. & 50 CTB.

BOOKING AT THE THEATRE,