New Britain herald., 1924-04-09
Committee Learns That There Are Six And Three-Quarter Billion Gold Marks H e Id Abroad.
Payments as Recommended Rise From no Million Gold Marks in 1926 to Two and One-Half Billion in 1884.
By the Associated PreS.

By the Associated Press.
 Paris, April 9.--The report of the experts who have been engaged fer the past three months in the task of ascertaining Germanys capacity to pay reparations was handed to the reparation commission today. The two committees under the chairman ship of Brigadier General Charles c. Dawes and Reginald AIcKenna, re- spectively, have gone deeply into the intricacies of the many problems con- nected with separations, and, as men. toned in the covering letter. they ap- proached the task ''as business men anxious to obtain effective results" Y. S. Has Big Part ' The league of nations is drawn iatO the reparatiops problem by the Dawes report, while an official representative of the United States is slated for an important hole in the execution of the experts plan. An American member of the general board of control for the proposed new gold bank of issue is quite likely to fill the important
 
 will be to decide when Germany's capacity to pay has been reached, while the league finance committee will be asked to arbitrate if the com missioner's decisions in applying the index of prosperity" are disputed by either Germany or the allies. Purely Business A business matter bereft of politics Is how the experts describe the task they have just completed. They in- terprsted the object Of their work as tending to the collection Of the debt, rather than to the application of pen- alties. with purely economic solu- ton in view.
 Recognizing the obligation of Ger many 10 pay and declaring that she has resources with which 10 pay, the experts insist that if Germany does pay she must have her hands free to exploit her economic resources.
 The experts carefully omit in their report mention of the Ruhr, but make it plain that the French and Begians must satisfy themselves by leaving garrisons in the Ruhr, If they see fit, but taking their hands off the Ruhr and Rhineland railroads and the Rnhr industries
 sound Money Needed
 The first prerequisite to the pay mcnt of separations, the experts as- sert. is sound money in Germany. They propose to this end the estab- lishment of a new gold bank of issue with s00,000.000 gold marks capital, in the organization of which they make 1t to the interest and profit of Germany. as well as to the advantage of the allies, to cooperate.
 Germany's production, they say, will enable her to meet her own rec quirements and raise amounts to ap- ply to reparations and contemplated in the plan. These payemnts, fixed on a sliding scale. run from 110,00n.- 900 gold marks in 1926 10 2,5oO, ,ooo,- 900 in 1884.
 Index of Prosperity
 In order 10 prevent these payments from affecting adversely Germanys financial stability. an index of pros perity has bee1 fixed, making 1t pcs sible to judge whether the amounts of the scheduled payments are or ars not beyond her capacity.
 4 general board of control. in- cluding an American, with allied, neu- tral and German members. is the ex- pcrt's' solution of the difficult prob- lem Of guarantees that Germany will execute the terms of eventual settie- ment under their plan. The experts found this plan most likely 10 satisfy the allies and at the same time prove acceptable 10 the Germans. One member Of this board. with the title Of commissioner, will bc vested with the important duties uf deciding &C., cording to an index of prosperity the payments provided of German fi- uances.
 The index Is 10 be i.assd Ipon Ger man exports and imports the total budget receipts aud expenditures. rail load traffic. and monetars value of the consumption Of sugar. tobacco. beer and alcohol by tho total popula- ton and the consumption of coal. percentages will be fixed on the aver age statistics covering these bases first for three years, then for six years. the percentage Of each of the six groups compared with the base heing separately computed and the average of inc six percentage results forming the index.
 When the resources exceed the in- jex. supplementary payments on rep- arations are to be made in propor- tionate amounts: when the index proves deficient. basic payments shall be made for the period on which the are based. But subsg luent supplementary payments shall not become due until allowance has teen made fo- previous deficiencies.
 The Leagues Work
 At this point the league Of nations Is brought into the plan. Any dis puted point upon the application of the statistics on this index is 10 bs