The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-11-11
FAVOR PLAN
TO GIVE AID
TO GERMANY I I \ 4 !!
Moratorium Advoca-
ted by Experts to.
Help Mark -Stabili-
zation Of German
Money is View Of the
Committee 80:


ciated Press) The report Of the
experts who have been Investigating
economic conditions in Germany,
Profs. Keynes, Brand, jerks and
easel, advocated a two years mo-
sratorium from reparations pay
ments Of cash Or in kind and sta
biIiZation of the mark on the ba-
sis of. 5000 to $500 marks to the
dollar by utilizing the Reichbank's S
gold reserve. The report contends
that the financial problem cannot
be solved unless the mark is sta
bilized and that stabilization would
be impossible without a morator.-
iurfl.
The moratorium might need to be
extended and payments should not
be resumed until Germany is able
to discharge them from a real bud
get surplus, which the experts think
may be attainable in two years.
Thus stabilization would depend
for success not on foreign loan.
but on development Of the condi-
tons Of production and final: set
tlement Of the reparations prob
lem.
They consider their plans would
be facilitated if in the meantime
negotiations were started with a
consortiunn of bankers to support
sta bllfzation by modest credits, and
also that a foreign loan cannot be
expected until the reparations prob
lem is finally settled.
The experts state that Germany
should have equal rights with 9TH
er nations to impose duties on luxu-
ries and the right to demand the
most favored nation treatment as
regards exports. The signatories
believe It is neither necessary nor
practicable to prohibit absolutely
an increase in the floating debt, but
that with the mark stabilized it
would be. possible to allow just
enough further increase to tide
over immediate difficulties.
They point out that on the basis
of $500 marks to the dollar the
Reichbank's gold would be about
twice the value Of the note issES,
and that this is an unprecedented
situation, ats no other currency has
fallen into such a state, with so
great al potential support unutiliz-
ed. When stabilization is fully ac-
complished. it is remembered a
new unit should be adopted for
general convenience.
The report suggests that Ger
many should offer the following
definite guarantees:
First, an Independent board Of
exchange control, constituted as a
.specjal department within the or
|gafRation of the Richsbank' and
an understanding that the Reiehs-
bank would hold adequate gold
from It's reserves at the disposal Of
such a board ~
s. Second, so long as any part of
such gold is unpledged paper
marks should be purchased by the
board of exchange on demand.
Third, the aggregate value Of the
net floating debt shall not be in
creased beyond a defined figure, all
other governmental requirements
for credit to be covered by a fund
ed loan.
It shall also be provided that
the resources of the board of ex-
change control shall be exempt
from interference.
|. The report states that on con-
sent of the reparations commit
tee to the foregoing measures the
following steps should be adopted:
First, financial cooperation and
the support Of an international fl
nancial consortium to be invited.
Second, a foreign currency re-
serve, on such a scale as may be
required, to be created on a basis
of the gold at the disposal Of the
board Of exchange in conjunction
with cities which may negotiate
with the international consortium.
Third, abolition of exchange reg
ulations and restoration Of free
and unrestricted dealings in ex-
change and foreign securities.
It is recommended further that
the bank rates be raised to a
high point and dear money main
tained until stabilization is quite
secure.