The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-04-25
MORGAN-DAWES PLAN

in the profits of the bank, but the
bank is to be entirely free from gov
ernmental control or interference
Thus private financial institution,
under the direction of foreigners, is
given charge OF the financial affairs
of Germany for half century.
Sources Of Treaty Payments.
There are three sources from
which the treaty payments are to be
derived. With the sterilization of
German economic life under the new
fiscal system, the German state
budget, by 1929, will be able to yield
1850 million gold marks per year.
The railroads, recapitalized and in
private hands, will yield $50, 100000
gold marks per year. Another con-
siderable sum will be provided by a
bonded debt Of 5000 million gold
marks to be placed on the industries
OF Germany. After 1929 these three
sources are counted upon for $500
million gold marks per year. The pc
riod during which these amounts are
to be paid is left indeterminate, but
is presumably so years at the least,
as that is the length OF time during
which the bank charter will run.
"As an immediate source of reve-
nue., the sales of bank stock, OF rail-
way stock and of industrial bonds
would provide ready capital for the
organization of the bank and for the
deliveries in kind that are to be made
as heretofore under the conditions OF
the treaty.
Currency Sterilization.
German expenses can be met IN
der next years budget, provided that
the necessity for reparation payments
can be suspended for one year. and
provided that they can then be re-
sumed gradually during the years up
to 1929. This plan is suggested.
"The new bank will meanwhile have
provided stable currency, backed by
"a S3 1-S per cent gold reserve. and
Germany ought, in 1925, to be MAX
ing rapid strides toward complete re-
covery and should in three years. by
1928, reach normal economic con-
dition' When that point is attained.
the Allies should share in the in.
creased prosperity of Germany
A Set Of Harness.
This Dawes report was drafted bv
the leading economic and financial ex-
perts Of the allied countries. II NAV
therefore, be taken as representing a
plan which has the approval of bust
ness men who are dealing with the
problem, not in the heat of passion.
but in the calm of committee room.
Inc result is masterpiece.
No more effective set of social har-
ness has ever been built by modern
imperialists. The defeated imperial
rival is not only to be saddled with a
heavy indemnity as was France In
1871, but the railroads, the industrials
and the financial institutions of the
vanquished country are to be placed
under the control of the victor, until,
IN the opinion of the latter, the van
quished have paid enough BY the
terms OF the document, this will be.
at the least, half century. During
that entire period the workers OF Ger
many are to carry on their backs mot
only the private business interests of
Germany made secure against revo.
luton by having part of the internal
economic control of the country under
foreign domination), but the ruling
classes of seven capitalist govern.
ments, who will suck Germany dry of
any surplus that may accumulate out
OF the proceeds of German industry"