Evening star., 1924-04-09

/ balanced; the budget can only be
balanced if a stable and reliable cur
; rency exists;
! (c5 Both are needed to enable Ger
many to meet her internal require
ments and treaty payments
! = Economical future of Germany.
! t;l Productivity is expected from
/ Increasing population. teen nical Skill
material resources and enlnchctS III
| industrial science:
tbD Plant capacity has been IN
/ creased and improved since the wal
Stabilized Currency Necessary.
/ 6. Currency and a bank issue.
! (al All classes will benefit from
stabilized currency. especially labor;
! tb) Under present conditions, rem
tenmark stability Is far from tenn
! porary;
! tc) \ new bank is set up or the
| reichs bank reorEaniZed:
| td) The main functions of the bank VIII
! he. (ll TO issue notes on a basis stable in
! relation to gold with exchange privilege
| Cd TO serve as bankers bank es-
| tabliShing the official rate OF eA-
change discount, t3b 10 act as inc
government banker, but free OF gov
! ernment control. advances TO govern
{ ment to he strictly limited: t4) to
! hold on deposit reparation payments: !:
/ 90 the capital of the bank VIII be
! four hundred million gold marks; co
/ il will he directed by German pre-
| ident and managing board, who can
! be assisted by "A German consultative
committee: 90 the due observance
Eof it's statutes will be further safe
/ guarded by a general board. OF when
! half of its members, including a com
! missioner. viii be foreign.
| balancing of budget.
:. Budget and temporary repara
! tion relief
Balancing the German budget re
quires:
(a) Full economic and fiscal SOW
ereignty subject to the supervision
! provided for in this report:
{, Cb) A stable currency;
! Cc) Temporary relief from charges
on the budget for treaty obligations ;
| (d) Such relief not to suspend es-
| sential deliveries in kind.
s. The basic principles of Ger
many'S annual burden.
! (a) Treaty obligations and continu-
/ ity of balanced budgets.
| OD Balancing the budget does not
! entail merely provision for internal
administrative expenditure; CD Ger
many must also pay within the ut
! most limit of her capacity for her
,
budget can be balanced without nee
essarily dealing with the total CAPT
| tai debt Of Germany; "a IL cannot
| be continuously balanced unless the
annual charge is fixed for consider.
able period on a basis clearly pre-
scribed in advance.
Recognizes Commemorate Tax.
CD Commensurate taxation. O
Government internal debt has been
practically extinguished by the de-
probation of the currency; (2) new
debt charge ought to be met com
mensurate with the burden Of the
French, English, Italian and Belgian
taxpayer; (3) the treaty recognizes
this principle; 90 it Is morally sound;
(5) it is economically just in it's in
fiuence on costs of production; (6)
this principle has been applied to the
full limit of practicability.
| (c) Allies share in GermanyS pros
per-ity, Cd Germany'S creditors must
share in the improvement in Ger
manys prosperity; CD this Will be
secured by an index of prosperity.
(d) There is an important difference
between the Germans capacity to
pay taxes and Germany's capacity to
transfer wealth abroad.
g. Normal resources from Whlcn
Germany will pay treaty charges
from three sourceS-(a) taxes; CD
railways; (c) industrial debenturea
PIan for Balancing budget.
(a) From her ordinary budget. Cd
1s24-25 budget may be balanced if
it is free from peace-treaty charges;
(2) 1925-26 budget receiving five hun
dred million gold marks (above
points 3, 4, subject to addition or re-
Iduction in certain contingencies)
f5l 192S-29 one thousand two hun
dred and fifty million gold marks
This is considered a normal year and
standard payment hereafter; Az
ditional payments Will De maoe, oe-
pending on prosperity.
(b) From railways: Cd Railway
bonds-(a) eleven milliards OF FIRST
mortgage railway bonds, against a
capital cost of twenty-siX mlIllards
will be created for reparations; b)
these bonds bear 5 per cent interes,
and / per cent sinking fund per an
mum; (c) in view of reorganization
interest is accepted as follows: 1924
25. 33O,oOO,000 gold marks; 1925-26
000,00 gold marks; 1928 an6
thereafter, 100000, 900 gold marks.
Distribution OF Securities.
Behind the bonds there will bt
created: Two milliards of preference
shares, to be reserved for sale to the
public and thirteen mi1liards of com
mon stock. Three-fourths Of the pro-
ceeds of the preference. shares will
be applied as required to the pay.
ment of debt and for capital expendi
ture of the railways. The remaining
500, ,Oo0, 900 of preference shares ant
all the common shares go to the Ger
imam government. 90: Transport tai