The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-05-30


Preparations Commission on April 9.
This report, along with its supple
ments, makes a rather large pamphlet
and space does not permit of our fully
setting forth its contents. We assume
that the essential contents are known
to the reader from the columns Of the
daily press and we shall only give
prominence to the principal features
of the report.
Payment Of Reparations Only When
The Exchange is Stable.
In the past years the Preparations
Commission demanded payment, both
in foreign scurrencies and. in goods,
without any regard to the question
whether the German rate of exchange
could endure such burden Contrary
to this the Expert Commission takes
the standpoint that Germany can only
afford PREPARATION payments when the
German rate Of exchange is stable be-
cause when the rate of exchange fans
the state income automatically shrinks
to such an extent that payments are
impossible. Therefore, the STABILITY of
the German currency is to be pre-
served in spite of PREPARATION pay
ments.
Reparation Payments in Germany
Currency.
AS a consequence of this, and with
the exception Of payments in goods,
Germany shall only pay in German
currency. The prescribed payments
shall be made in German money to the
account of the Reparations Commits
sion at the Note Bank Preparations
Bank which is to be founded. With
the depositing Of the prescribed sum
Germany has carried out her share of
the bargain. 1t is the business Of the
Allies as to how they shall get out of
the country the amount Of the repara-
ton payments which have been made
in Germany money. For this purpose
the report provides for a commission
of five and special agent who shall
see to it that the sums deposited by
Germany are sent abroad in suitable
form. 1t is the old question: In which
form Of goods can Germany pay the
reparations, that Is, In which form Of
goods can the reparations be accepted
by the Entente without causing seri-
GUS damage to the industry Of France
England, and the remainder Of the cap
italist world? Naturally, the report
does not solve this question because
it is insoluble. 1t decides that the Ger
man payments may be accumulated
up to a sum Of two milliard gold
marks in money. All amounts beyond
this shall be invested in German Sc
curities up to maximum amount of
five milliard gold marks. Should it
prove that no method can be found
for the acceptance of the reparation
payments, Germany's payments will
be reduced until such time when it
will be possible for Che Entente to
carry out the transmission to foreign
countries.
The report destroys all those plans
which sought to solve the reparations
question with one sweep by the TAX
ing up of an International loan run
ming into milliards. Proposal of the
Cuno Government for twenty mil
lard gold mark loan.) All the fairy
tales of American help, the whole
conception that by transferring the
wealth that has been piled up in
America, and which is partly unused
(the huge gold reserve Of the Federal
Reserve Banks), an important cause
of the crisis could be settled at the
same time as the PREPARATIONS ques-
ton, has faded away into nothing.
The report provides for a single loan
Of eight hundred million gold marks
which shall be employed for the pay
ments in the first year.
From the point Of view Of World
Politics this solution, il it is carried
out in deed as well as in word by the
Entente, signifies the defeat of the
French Policy Of force and the victory
of England. The lines of French po-