ii COAL 45

of paper marks, and although the price of British coalhad fallen sharply, the movements of exchange sooutdistanced the other factors, that in November1921 the price of British coal worked out at aboutthree and half times the price of the best bituminouscoal from the Ruhr. Thus not only were the German iron-masters placed in an advantageous position forcompeting with British producers, but the Belgianand French industries also benefited artificiallythrough the receipt by their Governments of verylow-priced coal.

The German Government is in rather a dilemmain this matter. An increase in the coal tax is one ofthe most obvious sources for an increased revenue,and such a tax would be, from the standpoint of theexchequer, twice blessed, since it would increasecorrespondingly the Reparation credits. But on theother hand, such a proposal unites two groups againstthem, the industrialists, who want cheap coal forindustry, and the Socialists , who want cheap coal forthe domestic stove. From the revenue standpointthe tax would probably stand an increase from 20per cent to 60 per cent; but from the politicalstandpoint an increase from 20 per cent to 30 percent is the highest contemplated at present, with adifferential price in favour of domestic consumers. 1

1 Dr. Wirth's first Government prepared a Bill to raise the tax to 30per cent, with power, however, to reduce the rate temporarily to 25 per cent.It was estimated that the 30 per cent tax would bring in a revenue of 9-2milliard marks.