Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1924-04-10

Rod required for her to balance her
budget. The experts say that eX-
tension of this help together with
the share the German treasury
will have in interest on the railroad
and industrial mortgages. will give
Germany an incentive to accept the
plan and carry it out.
The idea that surplus revenue
alone can be applied to the payment
of Germany's foreign debts is re-
jected by the experts. Payments,
they declare, ought to be made to
her taxable capacity, and any def
ciencies in resources from mort
cages must be made up from taxa
ton. 1t is a simple principle of JUS
tice, they point out, as contemplated
in the treaty, that the German peo-
ple should he taxed st least as heaV-
iiy as the peoples of the allied coun-
tries, and the only limitation should
be that of practicability.
The experts make a distinction be
tween the amount of money that
Germany can raise for the repara'
tons account and the amount THAT
can be transferred to foreign coun-
tries. Currency and budget lnsta'
bility might result from overstrain'
ing her capacity for making pay
ments abroad.
Preparations, however, they con
tend, may properly be included in
the budget. The index of prosper
ity, as interpreted and applied by
the commissions" is to be relied
upon to arrive at a proper balance.
The experts found that Germany
has been spending without stint on
complete installation of her railroad
system, which has Teen brought to
a point of efficiency unknown be-
fore the war. The transportation
System and industries generally are
provided with the most modern APP
planes, and ports and terminals
have been extended and improved,
furnishing excellent sources of reVe-
nue. and an adequate pledge, along
with mOnopolies, for the payment OF
reparations
Military Aspects Discussed
With respect to the military as
poets of sanctions and guarantees,
the Dawes report says:
IF political guarantees and pen
alties intended to insure execution
of the plan proposed are considered
desirable they fall outside the com
mittees jurisdiction. Questions of
military occupation also are not
within our terms of reference. 1t,
however, is our duty to point out
clearly that our forecasts are based
on the assumption that economic ac-
tivity will be unhampered and I'M
affected by any foreign organization
other than the controls herein pro
vided. Co ~aQuently our plan is
based upon ne assumption thet
listing measures, in so far as they
hamper that activity, will be with
drawn or sufficiently modified so
soon rs Germany Las put into exc
cution the plan recommended.
The committee recommends the
conversion OF the German railways
into a joint stock company. adding:
Our plan demands only a modest
return "a the capital egst, and so
long as this return is forthcor1i1g
we do not anticipate my interie, ence
in the German management OF the
undertakings
The railways are to be managed
by a board of eighteen directors,
chosen by the German government
and the private holders of preference
shares, and the other nine by the
trustee of the bonds to be issued
amounting to II 900, 100000 gold
marks, five of whom may be Ger
mans. The chairman of the board
and the seenral manager of the rail-
ways will be German.
Industrial Mortgages Outlined
Regarding contributions from the
various German industries. the re-
port says: The committee has been
i'm nrpScpI witt ne "a nd
STABILITY of requiring a. a contribu-
ton to reparation payments from
German industry a sum of not less
than 5000, 900, 900 gold marks to be
represented by first mortgage bonds
bearing five per cent interest and
one per cent sinking fund per an.
num-"
1t is pointed out that the indus.
trial concerns have profited in many
ways through the deprecated cur
rency, such as the long-delayed pay
ment of taxes by subsidies granted,
and advances made by the German
government. and by the depreciation
of emergency money which they is.
sued. Notwithstanding some losses
incurred by these industrial con-
Germs. the committee feels that the
burden imposed by the plan is not
too great for them to bear.
The provision contemplated by
the committee for treaty payments
is as follows:
Moratorium period:
First year, from foreign loan and
part interest COOS ,000) on railway
/ bonds, a total Of 1000, 900 900 gold
marks.
Second year, from interest on rail
way bonds INCLUDING 10000, 900
/ balance from first Year, and interest
on industrial debentures and budget
/ contribution. including the sale of
/ railway shares, a total of ,12Q, 000.-
! 600 marks.
Transition period:
Third year, from interest on rail.
/ way bonds and industrial dehentures.
/ from transport tax and from budget
a total of 100000 600 sold marks.
/ subject to contingent addition or de-
I duction not exceeding ESQ, 600, 900
/ sold marks
Fourth year. from interest on rail
way bonds and industrial deben-
lures. from transport tax and from
/ budget, a total Of 1.75O. 600, 600 sold
I marks, subject TO contingent addi
ton or reduction not exceeding ESQ.
/ 100000 sold marks.
STANDARD year:
/ Fifth year. from interest on rail
way bonds and industrial debeutures.
+ from transport tax and from budget.
/ a total of 900, 600 600 sold marks"
Would Coordinate Exchange
With a view to make certain that
not only does Germany meet her
payments but that the possible sur
I plus is actually established, the re-
port says:
We are convinced that some kind
/ % co-ordinated policy with regard 20
/ the exchange lies al the root OF the