Evening star., 1924-03-17
EXPERTS FIX BASIC
PREPARATIONS PLAN
Will Ask Bank of Issue to
Guard Mark, Rail Mortgage,
German Control of Industries
By the Associa ted Press.

tne nrSt committee OF experts under
Brig. Gen. Charles G. Dawes, which is
practically agreed upon, though the
working out of some details and the
drawing up of the text may require
another week, is based on these fun
damental findings.
The German people must pay as
much in taxes as any Of the people
OF the allied countries. Germany
must pay the maximum Of her capac-
ity in reparations. The German eco
nomic machine must be free to func-
ton under German control, unhinder-
ed by any interference from the out
side.
Minimum sums must be paid at
once or in the immediate future on
reparations, these to be Increased in
proportion to the revival of Ger
rnany's prosperity and according to
her economic conditions.
Propose to Set Up Bank.
In order to put Germany in a posi-
ton to carry out her part of the pro-
gram, which the report will suggest
to the reparations commission on the
basis of these general principles, the
experts propose TO set up an interna-
tional bank, to have exclusive right
to the issue of German currency on
gold basis. The bank plan provides
for the cooperation of the allies and
neutral nations with the Germans in
supplying capital and in the manage
ment of the institution, which is to
be located in some country neutral
in the late war.
The capital Of the bank remains
to be fixed; indications are that 1T
will be in the neighborhood of
$500, ,000. 600, of which half will come
from Germany and the remainder
from abroad. Foreign subscribers to
loans, to raise the necessary amount,
or to the capital, If final arrange
ments so provide. will be secured by
a lien on Germany's productive mo-
nopolies.
To Stabilize Mark.
The setting up of bank OF issue
is expected not only to assure per-
manent stability of the mark, but to
furnish n flexible medium through
which reparation payments may be
effected without resorting to the pur-
chase of foreign money with marks.
with the consequent risk of another
depreciation in German money.
The reich is supposed under this
plan to deposit in this bank the sums
required to pay interest on loans
ments. The allies will be enabled
to draw on the reparation fund pro-
portionately to their percentages
fixed at Spa. They may check out
cash or draw checks payable to pro-
ducts imported from Germany on the
may pay its obligations in it's own
money.
Revenue Of Monopolies.
MonopoIies and railroads are ex-
pected to furnish the revenue from
which the minimum reparation in
stallments are to be paid. 1t will be
suggested that in case these revenues
are insufficient at any time the bal
ance must be made up by additional
taxation. This proposition is based
on the conviction of the experts that
once Germany's money is tabilized
she Will almost automatically recover
ner capacity to pay something, and
lf the money is not forthcoming from
pledges 1t must be furnished from the
peoples pockets.
The suggestion of the experts that
GernanyS economic machinery be freed
OF any interference from the outside
means that the French and Belgfans
the Ruhr and Rhinelands railroads and
ABANDON economic supervision of the
Ruhr mines and industries. The ex-
perts will avoid the political aspects
OF this problem and will omit any ref
erence as to the merits OF the occupa
ton OF the Ruhr, basing their recon-
mendation on the purely economic truth
that II the Germans are expected to
produce to the maximum they must
have full and unhindered control of
their economic system.
Can Maintain Garrfsons,
The French and Belgians will be left
Tree to maintain garrisons in the Ruhr
or immediate vicinity. So while Obliged
to give up actual possession of the
pledges seized in January, 1923, thew
will be able at any time to put their
hands on the Ruhr industries il Ger
many fails to carry out the terms.
One OF the most important questions
treated by the experts is control of
the bank and pledges that will give
maximum security to the creditors of
Germany with minimum annoyance to
the Germans. Representatives of the
reich In their negotiations with the ex-
perts demanded full and unouaIifiet3
control Of the bank. the railroads and
the monopolies. The representatives Of
the allies insisted that If they gave
up economic control of the Ruhr they
must have equivalent security in con-
troll OF the bank of issue, the railroads
and monopolies. The experts hit upon
middle course, giving the Germans an
apparently dominating position in the
bank, while afrording an oppor-
tunity for the allies to block any policy
that might be inimical to their inter-
ests or the interests Of other creditors.
Veto Power to Allies.
The bank board, according to the
plan, will be made up of fourteen
members, seven Germans and seven
allies and neutrals, with a German
provide that questions of interest to
the creditors of Germany may be de-
cided only by a three-fourths vote.
thus giving an actual veto power to
the allied representatives.
Railroad control remains to be COM
inof NJ.
will be on the same lines as control
of the bank of issue In order TO
provide Immediately funds which the
allies may have in hand in partial
satisfaction of the reparation obliga-
tions. the experts propose a ten-bil-
railroads, which would be handed
over to the allies. The mortgage
bonds wuold be divided among the al
lies on the percentages fixed at Spa !:
per cent, as the experts have recon-
mended; 5 per cent, as the Germans
demand, or 512 per cent as a COM
promise. 1t is hoped that the interest
payments on these mortgage bonds
would make them negotiable. enabling
something on them and relieve her
financial stress.
OpDese Continual Control.
The experts make suggestions as to
balancing the German budget during
the five ensuing years. They will
probably dodge the allied plan for
continual control of German finances,
believing that once the reparation
commission and the allies have made
known the terms Of the final settle
ment and Germany has accepted them,
il becomes a simple question as to
whether the Germans are determined
to carry out the agreement, and con-
tinual control would be Intellectual to
change matters.
The report will also be silent on the
thorny question of a reduction of the
total German reparation obligations
The experts hold that all tho Germans
need to know is how much they are
In If