Evening star., 1924-08-16
DAWES PLAN WILL
BOOM j. S. TRADE
Expected Rehabilitation of
Europe to Boost Raw
Materials Demand.
BY j. G. ROYLE.
Special Dispa tch to The Sta,

Special Dispatch to The Star.
NEW YORK. August 16.-While the
protocol binding Germany and the al
lies to operation of the Dawes plan
has not yet gone into effect. negotia-
tions at London have now reached a
stage where American business smen
are convinced the rehabilitation of
Europe soon will begin. Consequent
~. the majority Of them took a
brighter view of the nearby and long
term prospect for business and indus
try today.
The business mer were confirmed in
their belief that the plan will be put
in operation by the attitude of oni-
Gals at Washington, and by the move
ment In long inactive German bondx,
which apparently had it's origin in
financial circles of Germany itself.
More Cheerful View Here.
Since Secretary of State Hughes ar
rived from Europe, Washington off,
clals nave shown a more cheerful at
titude about the Dawes plan. The
Bureau of Foreign and Domestic Com
merce, for example, will issue Monday
a report on the prospective effects on
American business of the scheme, al
though there is no absolute assurance
that the formal action preparatory to
putting the plan into operation will
be taken by that time
While the effect of the operation of
the Dawes plan will necessarily be
psychological for some time to come,
so far as this country is concerned, it
Will be none the less real. Business
men all over this country have look ed
on world commerce and trade as a
mill, the main drive shafts of which
are turning under only a part load.
With the plan in operation, they ex-
pect to see the belts of the line and
counter shafts slipped from the idler
pulleys and begin to turn the eco
nomic machinery Of the idle countries
of the world until peak load of pro-
duction is reached.
Boom to American Trnde.
II that takes place, it will mean
prompt and continued demand for
American raw materials, with equally
prompt payment for American goods.
Surplus commodities, which have
hung like a wet blanket over the fire
of American production, will be alb
sorbed and competition will instill
new life into trade veins.
The prospective effect of the opera-
ton of the Dawes plan can be gath
cred by the widespread comments of
economic experts and business men.
Pierrepont B. Noyes. former United
States Rhineland commissioner de-
clares the plan is "a master stroke in
the interests of the farmer and all
business in America
Edward A. Filene of Boston, retail
merchant who keeps in closest touch
with European markets, asserts that
Germany under the operation of the
plan will be Americas best customer
His contention to some extent is
borne out by the recent activity in
copper, lead. zinc, silverDcotton, wool
and other commodities which have
been Influenced by prospective Ger
man demand.
Keen Competition Seen.
AS to competition In world mar
kets as result of the operation of
the plan, some experts declare that
this would establish a basis for world
trade on the same competitive condi-
tions that existed before the war
and that in consequence America
must be prepared to lower costs and
take other steps calculated to hold
her share of world trade. These men
point out that with peace prevailing
increased world production of manu-
factured goods and increased eff
ficiency of equipment will insure that
the long range of price movements
will be downward.
They add. however, that there is
nothing to worry about in such a
prospect since it will involve in
creased distribution and a general
growth of prosperity. Such pros
perity, agriculturists believe. would
aid in consumption of farm products
produced in America.
Bankers and financiers who will be
largely interested in the loan OF
5000, 100000 to Germany place special
stress on the stabiliZation of the Ger
man currency which it is believed the
plan will bring about. Little diff
Guilty is anticipated in raising the
amount of the loan which will be as
signed to this country.
Speaking of the Dawes plan from
the viewpoint of a credit man accus-
toned to dealing with debtors whose
affairs are in a serious tangle, J. H
Tregore, secretary and treasurer OF
the National Association of Credi,
Men, said today:
Germany's debt. like all debts, car
be discharged only on the basis OF
two living credit principles: namely,
willingness to pay and ability to pay
The plan provides a foundation fol-
such willingness and such ability"