Evening star., 1924-04-08
The Dawes Report.

Germany can pay. That is the
kernel in the Dawes committees re-
port. The rest, though vitality neces-
sary to the translation of ability to
pay into actual cash, is Of secondary
Importance. For the first time in the
veXatious. problem of reparations, the
question of what and how Germany
can pay is put upon n basis of busi-
ness common sense, instead of being
tossed about between the hopes and
political necessities of the creditor ma
lions and the reluctance and political
necessities of the debtor nation. The
allies cannot afford to reject the find
ings of the Dawes committee. Ger
many dare not reject them. Rejection
by either party in interest would bring
on the deluge. Rejection by the allies
would be accepted as proof that they
want to destroy Germany, not to make
her pay. Rejection by Germany would
be accepted as q choice of dishonest
bankruptcy, and the creditor nations
would have no alternative but to step
in and salvage what they could from
her assets.
The Dawes experts have shrewdly
avoided pitfalls into which it had been
predicted they would stumble. They
have found that Germany, without too
seriously retarding her economic re-
The sum total of reparations will de-
pend upon how long such payments
are continued. and the experts do not
undertake to determine that. 1t is left
for future adjustment between Ger
many and her creditors. Occupation
of the Ruhr was another of the traps.
II is cleverly evaded. The experts in
sist that it is necessary that economic
control of the Ruhr shall be restored
to Germany. There is no mention of
need not necessarily interfere with
economic functioning the experts did
not deem they had any proper con-
Germ with il.
There has been much protestation
in Germany against the idea Of allied
control Of finance and industry and
government budgeting. The experts
propose such control only in case Ger
many defaults. If the German govern
ment and people Loyalty live up to
all practical purposes, free to manage
their own affairs. But the best all
around safeguard is the fact that the
program of the experts makes it a
matter of self-interest to the allies to
keep Germany q going concern. The
day the allies and Germany agree to
acceptance of the program reparations
will cease to be a political question
and will become one Of business. And
in business u creditor never interferes
TO hamper a debtor who is Loyalty
meeting his obligations.
Details OF the financial proposals of
the experts will be found in the news
columns of today's Star. Briefly, they
found that as the German people are
practically free from taxation for the
service of a national debt they should
be taxed to parity with the people of
France and England for the service of
reparationS, and that such taxation
would make possible payment of in
creasing annual sums. starting at one
billion gold marks the first year, credit
by an internationa loan, and reaching
two and half billion gold marks the
fourth year. They found that as Ger
man industry had taken advantage of
the debacle of the mark to liquidate its
mortgage debt it was in a position to
reparations. and they propose a bond
issue of five billion gold marks foun.
dationed on the industrial property.
The railroads are to be placed under
share of their earnings for reparations
service, and an internationally con-
trSolled bank of issue is to stabilize the
currency and to be a repository for
reparations payments, such payments
TO, be exported from Germany only
when it can be done without economic
injury.
The experts are reported to have
been exceedingly weary at the conclu-
sion of their task. But they may find
consolation in the fact that their work
promises to relieve the world of an
even greater WEAKNESS.
1t will be difficult for Congress to