Evening star., 1924-04-09
Recovery Of All
Europe Hope
of Banker.
TEJTONS' TAXES
HELD TOO LOW
Berlin to Have Free
Rein i'm Directing
Economic Phase.
BY the Associated Press.

PARIS, April Brig. Gen.
Charles G.. Dawes, the unofficial
American representative on the first
committee, which examined into the
economic and financial situation in
Germany, in a covering letter to the
report of his committee tells the
reparations commission that the
committees recommendations must
be considered not as infiicting pen
alties, but as suggesting means tor
assisting the economic recovery OF
all European peoples and the entry
upon a new period of happiness and
prosperity unmenaced by war.
The covering letter of Gen. Dawes
follows:
World View Considered.
/ ITO the President of the reparation
commission.
Sir:
Your committee has unanimously
adopted a report upon the means for
balancing the German budget and the
measures to be taken to stabilize its
! currency which 1 now have the honor
to submit.
Deeply impressed by a sense of
its responsibility to your commission
and to the universal conscience, the
committee bases it's plan upon those
principles of justice, fairness and
mutual interest in the supremacy of
which not only the creditors of Ger
many and Germany itself but the
world also have vital and enduring
concern.
Surpczts Economic Recovery.
with these principles fixed and ac-
cepted in that common good faith
which is the foundation of all busl-
ness and the best safeguard for uni
versal peace, the committees recon-
mendations must be considered not as
inflicting penalties, but as suggest
ing means for assisting the economic
recovery of all European peoples and
the entry upon a new period or nap
piness and prosperity unmenaced by
war.
Since. as a result of the war, the
creditors of Germany are paying
taxes to the limit of their capacity,
so also must Germany be encouraged
to pay taxes from year to year to the
limit of her capacity. This is in &C
cord with the just and underlying
principle Of the treaty of Versailles,
reaffirmed by Germany in it's note OF
May 90, 1919, that the German scheme
of taxation must be fully as heavy
proportionately as that of any OF the
powers represented on the commission.
More than this limit could not be
expected and less than this would
! relieve Germany from the common
hardship and give to her an unfair
advantage in the industrial compe-
tition of the future. The plan of the
committee embodies this principle.
The plan has been made to in
clude flexible adjustments, which
from the very beginning tend to pro-
duce a maximum of contributions
consistent with the continued and in
creasing productivity of Germany
the conservative estimates of pay
ments to be made in the near future
are dictated by business prudence in
outlining the basis of a loan and
should not destroy the perspective as
to the effects to be registered in the
aggregate of eventual payments
which will annually increase.
Most Hopeful Estimates.
with normal economic conditions
and with productivity restored in
Germany, the most hopeful estimates
Of the amounts receivable are justi-
fed Without such restoration, such
payments as may be obtained will be
of little value in meeting urgent
needs of creditor nations
ITO insure the permanence of the
new economic peace between the al
lied governments and Germany, which
involves the economic adjustments
presented by the plan, there are pro-
vided the counterparts of those US
ual economic precautions against
decentralization which are recognized
as essential in all business relations
involving express obligations.
The existence of safeguards in no
way hampers or embarrasses the case
of ordinary business contracts. The
thorough effectiveness of these safe
guards should not embarass the nor
NAL economic functioning Of Ger
many and is of fundamental impor-
tance to Germany and her creditors.
Great care has been taken in fix
ing the conditions of the supervision
over Germany's internal organization
so as to present a minimum of inter-
ference consistent with proper pro-
lection. The plan submitted is fair
and reasonable in its nature and, If
accepted. IS likely to lead to ultimate e
and lasting peace. The rejection of
these proposals by the German gov
ernment means the delibe rate choice
of a continuance Of economic demor-
alizstion, eventually involving her
people in hopeless misery.
Covered Broad Field.
"In the preparation of this report
the committee has carefully covered
a broad field of investigation. It has
had the constant cooperation Of able
STATS of experts in gathering infor-
nation, digesting it and presenting it.
The committe has conducted on the
ground an examination of officials Of
the German government and repre-
sentatives of German labor, agricul-
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