Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-04-10

representative OF the United states
is slated for an important role In the
execution of the experts plan. An
American member of the general
board of control for the proposed
new gold bank of issue is quite likely
to fill the important post of com
missioner" His duty will be to de-
eide when Germany's capacity to pay
has been reached, while the league
finance committee will be asked to
arbitrate If the commissioners de-
eisions in applying the index OF
prosperity" are disputed by either
Germany or the allies.
A business matter bereft Of politics
is how the experts describe the task
they have just completed. They in
terpreted the object of their work as
tending to the collection of the debt,
rather than to the application of
penalties, with a purely economic
solution in view.
Recognizing the obligation Of Ger
many to pay and declaring that she
has resources with which to pay, the
experts insist that if Germany does
exploit her economic resources.
THE experts carefully omit in their
report mention of the political as
poets of the Ruhr occupation but
make it plain that the French and
Belgians. if they see fit to maintain
garrisons in the Ruhr, must keep
their hands off the railroads and in
dustrieS.
The first prerequisite to the pay
ment of Preparations, the experts as
sert, is sound money in Germany.
They propose to this end the estab-
lishment of a new gold bank of is
sue with 400, 100000 gold marks capt.
tai, in the organization of which
they make it to be the interest ana
profit of Germany as well as to the
advantage of the allies, to cooperate.
Germany's production, they say,
will enable her to meet her own re-
Quirements and raise amounts to ap-
in the plan. These payments, fixed
on a sliding scale. run from 10000
GOO gold marks in 1926 to $500, 0UU,-
900 in 1884.
In order to prevent these payments
from affecting adversely Germany's
financial stability. an index of pros
perity has been fixed, making it pos
Sible to judge whether the amounts
of the scheduled payments are or are
not in accord with capital.
A board of control. including an
American. with allied, neutral and
German members, is the experts So
luton of the difficult problem OF
guarantees that Germany will exc
cute the terms of eventual settlement
under their plan. The experts found
this plan most likely to satisfy the
allies and at the same time prove
member OF this board, with the title
of commissioner, will be vested with
the important duties of deciding ac-
cording to an index of prosperity
when the payments provided FOR IN
the plan may prove too Onerous anu
may threaten the upsetting of Ger
man finances.
The index is to be based upon
German exports and imports, the to-
tai budget receipts and expenditures,
railroad traffic, the monetary raiue
of the consumption of sugar. tobacco,
beer, and alcohol, by the total popu-
lation and the consumption of coal.
Percentages will be fixed in average
statistics covering these bases. first
for three years, then for six years,
the percentage of each of the SIN
groups compared with the base be-
ing separately computed and the
average of the six percentage results
forming the index.
When the resources exceed the In
deX, supplementary payments on
reparations are to be made in proper
tomato amounts: when the index
proves deficient, basic payments SnaIi
be made for the period on which the
calculations are based. But SUISSE
quent supplementary payments shall
not become due until allowances have
been made for previous Deficiencies.
AT this point the league of nations
is brought into the plan: any dis
puted point upon the application of
the statistics on this index is TO be
referred to the finance section of the
league for arbitration.
Germany's railroads. estimated by
the experts to be worth 26,000,000 600
gold marks with a net earning ca
pacity as high as 100000, 900 gold
marks yearly. were found to be an
available means for securing repara-
tons payments and aiding German
finances. The experts propose a
blanket mortgage of 11,000.000,0 900
sold marks on the entire German
railroad system, bearing five per cent.
interest, with l per cent. sinking
fund annually.
The interest and sinking fund on
the mortgage. they figure, represent
less than three per cent. on the en-
tire capitalized value of 26.000,0 900, 900.
Full interest will not be required dur
ing the period of reorganization. but
the payment of 100000, 900 marks will
be asked in 1924 and 1925. increa sing
CT a sliding scale to 660,000,00o in
1927 and 1928 which the experts
think ought to become normal years.
German industry under the plan is
expected to provide 5,000,000,000 gold
marks, represented by first mortgage
bonds bearing the same rate of in
tercst as the railroad bonds. This
amount. the experts explain. is less
than the total debt of the industrial
undertakings in Germany before the