Evening star., 1924-03-17
industry approaches maximum produc.

industry approaches maximum produc
tivity.
The plan OF the experts, Of course
contemplates stabilization Of the cur
rency and balancing OF the German
budget. The first is to be accom-
plished by establishment Of a bank OF
issue and discontinuance OF govern.
ment issues Of fat money. When ade.
quate taxes are imposed the budget
will automatically be balassm This
is rendered less difficult by the fact
that the German government has prac.
tically no internal debts to contend
with. The huge Indebtedness which
existed at the signing Of the armistice
has largely been paid OF in the de.
based currency issued by Berlin. and
today the slate is almost clean.
With no internal debt to contend
with, and with the German people
taxed as heavily as are the people of
Great Britain, for instance, ability to
pay reasonable reparations can no
longer be subject for dispute. Taxa
ton equal to that Of Great Britain
would give the German government a
revenue, over and above necessary
budgetary expenses, sufficient to meet
interest charges on q debt Of five to
seven billions of dollars. and this sur.
plus will increase as productivity in
creases. That such sums could not
regularly be transported out Of Ger.
many and paid over to the allies in
cash without disaster will be admitted
and the Dawes plan does not contem.
plate any such procedure. Instead.
payments by the German government
will be deposited in the bank Of issue,
which is to be under joint German and
allied control. and can be checked
against for the purchase of German
goods and for such services as the
German railroads and steamship lines
may render, as well as for neutral
clearances. Some cash undoubtedly
will be withdrawn. but in the main
the translation Of payments will be
in kind.
Some annoying and even difficult
details remain to be worked out, but
1t is apparent that the Dawes commit.
tee has gotten at the heart Of the prob
lem. Its discoveries consist Of two
major facts. One is that the German
people are not taxed as heavily as are
the peoples of allied nations. The
other that, Germany having no in.
ternal debt. when the German people
are equally taxed there will be sums
available for the payment Of repara.
tons. CAPACITY to pay having thus
been established, 1t remains to be de.
termined how best the sums to become
available can be translated into actual
payments outside the German borders,
But the fundamental fact that Ger.
many has capacity to pay having been
established, arranging the exact forms
Of payment ought not to present any
insuperable difficulties.
1t now remains for the plan to be
accepted by the nations chiefly in in.
terest. 1t is inconceivable that Ger.
many should refuse, for refusal would
amount to a confession Of unwilling.
ness to pay. and would bring down
upon her the wrath of the world. For
France, too. there is involved a ques-
tion of good faith and fair intent. The
plan provides for the immediate pay.
ment Of minimum sums. and all the
measures Of coercion which France
has taken have not resulted in pro
duction OF even the minimum sums
1t has been charged that collection OF
reparations was not the main desire
Of France. Opportunity now is offered
France to show that her detractors
were in error.