Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1924-04-09
Not Mflictimg Punishment
But Offering Means Relief
States Dawes IN Reporting

sound money in Germany. They pro-
20 cd to this end the establishment Of
new gold bank of issue with 100000
600 gold ma Ks capital. IN the organiza-
tion ,of which they make ii to the in
tcrtst and profit Of Germany Or well AZ
t0 the advantage Of the allies, TO CO.
operate.
Geimlny's production, they say. will
enable her ~ meet her own require
merta and raise amounts To apply 10
reparation as contemplated in the plan
These payments, fixed on a sliding
scale run from 10000. 900 gold marks
w 1926 W. 2.5O0, 100000 in 1884.
IN 0-dcr to prevent these payments
from lffcct.ng adversely Germany's
financial stat ility an index Of propseri
ty a. been fixed making X possible
to judge whether the amounts Of the
scheduled payments are or ave not be-
y0nd her capacity.
General Board of Control.
A general board or control. including
~ American. with allied. neutral and
German members. is the experts So
luton VI the difficult problem Of guar
ant-es that Germany will execute the
terms Of eventual settlement under the
plan. The experts found this plan mo
likely to satisfy the allies and AZ the
same time prove acceptable to the Ger
mans. One member Of this board, with
the title of commissioner. will be vested
with the important duties Of cdciding
action on TN index " pro perity wien
tire payments provided Tor in the plan
may prove too cnerOus and may threat
IN the upsetting Of German finances.
The index j. % be based upon Ger
man exports and imports. the total bud
get receipt sand expenditures, railroad
traffic. the monetary value Of the con
sumption 0f sugar, tobacco. becr and
alcohol ty the total population and the
coal mined.
Percentage. will ~ fixed On the av-
ciage statistics covering this basis.
first for thee years. then for six years.
the percentage of each Of the six groups
compared with the ba { being separately
computed ana the average of the six
percentage results forming the index
When the resources exceed the in
dcX. supplementary payments on repair
ations are to be made ID proportionate
amounts; then the index proves def
Client. asic payments hall Nv made for
the period on which the calculations are
based But subsequent supplementary
payments shall not become due until
allowance has been made for previous
deficiencies.
League OF Nations Brought in.
Az thi point the League Vt Nations
i h ought into the plan; any disputed
point upon the apple, tion of the statis-
t.-s on this index ~ to wv referred to
th" finance section of the League Of
nations for ai itration.
Gcrm-ny's railroads. estimated by
Chs experts to rs worth 10000. .e0a 00J
gold ma X, with Z net earning capacity
~ as high Wy one billion gold marks
yearly. were found to ~ TN available
means for securing rcpar ion pay-
ments and aiding German finances. The
exports propose blanket mortgage Ct
$1,000. 100000 gold marks On tie catire
German railroad system bearing five
rar cent interest. with one per cent
sinking fund annually.
The interes. sinking fund on the
mortgage thty figure. represents less
than three pcr cent WI the entire capi-
tal.zed value of 26000. 100000. Full in
tercst viii nct te required during the
period Of REQ, ganization. but the pay
ment of 35o.09o 200 marks will be asked
ir 1921 and 1925. increasing on slid
ing scale to 660.000.0O0 marks in 1927
and 1928 which tn, experts thin; ought
to become normal years
German industry under the plan is
expected ~ provide 50OOOOO.OOO gold
marks. repre- cuted ny first mortgage
bonds bearing the same rate Of intrrcs:
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