The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-10-03
Continued from page u

treaty--a treaty Of war and dismem-
berment.
Second: Germany must annually
raise sums varying from a billion gold
marks in the first year to two-and-a.
half billion gold marks in the fifth or
normal year and for an indefinite mum.
Der Of years thereafter. The execu.
ton of this decision is contingent on
Germany's ability to raise these funds
from taxation and from other specified
sources without disrupting the cur
rency and fiscal systems of the coun-
try. All reparation payments are to
be adjusted accordingly.
Thirdly: All funds raised within
Germany are to be transferred to the
Allies. This transfer is contingent
upon its not unsettling the exchanges,
currencies and budgets of Germany or
its creditors. The collection Of these
funds is to be suspended, if it is i'm
possible to transfer them without such
injuries.
FourthIy: The committee estimates
the sums to be collected, but does not
attempt to decide he sums that are
to be transferred from Germany to the
Allies 1t is further decreed that the
payments to be. real must consist of
real wealth-money being only me-
dunn of transfer. Hence it is recog-
nized that Germany can pay repara-
lions to foreign capitalist creditors
only by rendering services and export
ing a far greater volume of commodi-
ties than it imports. This presently
unforeseen, If ever practicable, excess
is held to be the decisive measure of
Germany's capacity to pay reparations.
Machinery Of Dawes Plan.
Considering the two other chief
questions: How is the German bud
get to be balanced and its currency
stabilized, at the same time providing
for adequate reparations to the Allied
governments, that is to the Entente
imperialists, the Dawes committee
proposed the IOllOWlnB.
/. A foreign loan of eight hundred
million gold marks is to be fioated to
aid in the establishment of new bank
of issue, the sterilization Of the cur
rency, and towards the payment Of the
first years reparations.
2. A bank Of issue with capital of
four hundred million gold marks, rails
ed in Germany and abroad, is to be es-
tablished. This bank is to have the
exclusive right of issuing and circu-
lating bank notes in Germany" for
fifty years, the period of its charter.
1t will be the depository for repara-
ton funds and will serve as the bank
er for the committee charged with the
transfer of reparations. This bank is
to be administered by German board
Of management whose chairman will
be the president of the institution.
Side by side with, but above this man
aging board there is to be a general
board of fourteen. seven Of whom will
be Observation-Disclosures, British, Dutch,
French, Italian, Swiss and American.
1t is this general board which will
appoint the banks president, who is to
be its chairman and who is to choose
the personnel of the managing board
The general board also appoints the
commissioner who is to be one Of its
members and will be charged with the
enforcement of ''the law establishing
the bank, and the regulations relative
to its issue of notes and the mainte-
nance of the bank reserves"
The careful provisions Of the for.
eign capitalists to control and deter
mine Germany's currency is obvious
despite the roundabout and somewhat
complicated machinery set up. The
bank is to be the fiscal agent and de-
pository of the German government
but is to be privately owned and free
from government control.
3. The new bank is to maintain a
gold reserve of SO 1-3 per cent in order