The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-04-10

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sentative basis at 26,000,000,000.
Hopes on German Railways.
Belief is expressed that the German
railways can, without difficulty, earn
fair return on their present capital
value for the joint stock companies,
into which it is proposed to convert
the lines.
The German railways, it is recon-
mended, should pay eleven billion gold
marks, represented by first mortgage
bonds bearing five per cent interest
ano a one per cent sinking fund. A
board Of control will have ID German
members with German chairman and
general manager.
Under the heading industrial de-
bentures" the experts propose to re-
quire as contribution to reparation
payments from German industries
the sum of not less than five billion
gold marks, to be represented by first
mortgage bonds at five per cent with
one per cent sinking fund per an
mum. For one thing, the committee
points out, industrial concerns "have
profited in many ways thru depreci-
ated currency" and would be bear
ing an equal burden had the mark
not collapsed. 1t suggests the exemp-
ton Of agriculture from the obliga-
tons of the proposed mortgage.
1--WE are now" says the report, Gin
a position to summarize the full pro-
vision we contemplate for treaty pay
ments.
Provisions for Three Periods.
Budget moratorium period: First
year, from foreign loans and part in
terest (200,0O0,0OO on railway bonds)
a total of one billion gold marks;
second year, from interest on railway
bonds (including 130,000,000 balance
from first year) and interest on in
dustrial debentures and budget con-
tributions, including the sale of rail-
way shares, a total Of 1920, 000,00
gold marks.
Transition period: Third year, from
interest on railway bonds and indus
trial debentures, from transport tax
and from budget, total of 1,200,-
100000 gold marks, subject to con-
tingent addition or reduction not ex-
ceeding 250,000,000 gold marks;
fourth year 1,750,000,000 gold marks.
STANDARD year: Fifth year 25,-
100000 gold marks"
The first year will begin to run
from the date when the plan shall
have been accepted and been made
effective.
As soon as the plan is put into ac-
ton the reparations commission will
be in possession Of bonds for 10000
100000 marks, (11,000,000 900 from
the railroads and five billion from the
industrials) which may be sold to the
extent to which the financial markets
are capable Of absorbing them.
Plan for Deliveries in Kind.
Referring next to deliveries in
kind, the committee says that unless
they can be confined to natural pro-
ducts Of Germany, they tend to be-
come uneconomic in character"
Frances wishes are deferred to in
the report when it proposes that the
costs Of the armies of occupation are
first charge upon the proceeds of
deliveries in kind. Another reason
is given, however. Inc necessity IL
urged Of expanding almost exclusive
ly within Germany the sums available
for treaty. payments in 1924-25 and
1925-26, it being explained this will
work out, first to the advantage of
the German budget and consequently
to Germany's creditors.
The report provides "that all pay
ments for the account Of reparations
will be paid in gold marks or their
equivalent into the bank Of issue TO
the credit of an agent for PREPARATIONS
payments" and that the "use and
withdrawal of the moneys so de-
posted will be controlled by the said
agent and five persons skilled in mat
tiers relating to foreign exchange"
Here the committee again provides
that Germany is never to pay more
than the allies can receive without
upsetting the balance Of the ex-
change, or the trade balance, IL pay
ments are In kind.
But also too low a figure, unac-
ceptab'e to Germany's creditors and
unwarrantably favorable to Ger
smany. is deplored.