San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-09
: FIRST COMMITTEE REPORT.
Experts Outline Suggestions How
=. Germany Can Pay War Debts.

y Paris. April 9.-An official sum.
mary of part one of the report OF
the first committee of expers follows +:
Attitude Of Commute.
(a) The standpoint adopted has
been that of business and not poll
tics;
(b) Political factors have been con-
sidered only insofar as they affect the
practicability of plan;
(c) The recovery of debt, net the
imposition of penalties, has been
sought:
ID The payment of that debt by
Germany is her necessary contribution
to repairing the damage of the war;
= (e) 1t is in the interest Of all parties
to carry out this plan in good faith,
which Is the fundamental of all busi-
ness:
(f) Our plan is based upon this
pr;pciple-the reconstruction of Ger
many is not an end in itself; it is only
part of the larger problem of the re-
construction of Europe:
y (g) Guarantees proposed are eco
nomic, not political.
For success in stabilizing currency
and balancing budgets Germany needs
The resources of German territory as
defined by the treaty of Versailles
and free economic activity therein.
Military Aspects. Sanctions,
Guarantees.
(a) Political guarantees and penal
ties are outside our jurisdiction:
= (b) The military aspect of this
problem has been beyond our terms
of reference:
S (c) Within the unified territory
plan requires that when it is in eff
fective operation: a II any military
Organization exists, it must not I'M
spede the free exercise of economic ac-
Invites: (2) There shall be no foreign
economic control Of interference other
than that proposed by the plan, but
adequate and productive guarantees
are provided.
The Committees Task.
(a) Sterilization OF currency and
ethe balancing of budgets are interde-
pendent though they are professionally
separate for examination;
= lb) Currency stability can only be
maintained if the budget is normally
balanced; the budget can only be bal
anced if a stable and reliable currency
exists:
:. (c) Both are needed to enable Ger.
many to meet her internal require
ments and treaty payments.
Economic Future Of Germany.
(a) Productivity is expected from
increasing population, technical skill,
material resources and eminence in
industrial science;
OBJ Plant capacity has been in
creased and improved since the war.
Currency and a Bank Of Issue.
ta) All classes will benefit from
stabilized currency, especially labor
(b) Under present conditions rent.
senmark stability is far from temper
ary;
tcl A new bank is set up for the
Reichbank recognized;
I'D The main functions of the bank
will be: ID to issue notes Of basis
stable In relation to gold with an ex-
change privilege; CD TO serve as a
bankers bank establishing the official
rate of exchange discount; go to ACT
as the government banker but free OF
government control; advances to gov,
eminent to be strictly limited: (4) tC
hold on deposit reparation payments
90 the capital of the bank will BIZ
400.0OO.000 gold marks; 90 it vii
be directed by a German president ant
managing board who can be assisted
by a German consultative committee
10 the due observance of its statute,
will be further safeguarded by a gen
eral board of which half of the mem
bers, including commissioner will b
foreign.
Balancing the German budget re
quires:
(a) Full economic and fiscal SOW
s ereignty subject to the provision pro
vided for in this report;
q tb) A stable currency:
tc) Temporary relief from charge
on the budget for treaty OBLIGATIONS
I'D Such relief not to suspend es
sential deliveries in kind.
Basic Principles of Germany's Burden
ta) Treaty obligations and continu
ity of balanced budgets. a. Balanc
ing the budget does not entail merel
provision for internal administrative
expenditure. (2) Germany must alst
: pay within the utmost limit of her ca
parity for her external treaty obliga
tons. (3) The budget can be bal
anced without necessarily dealing witt
:. the total capital debt of Germany. a
It'csnrot be continuously balanced un
less the annual charge is fixed for
Z considerable period on a basis clearl.
prescribed in advance.
- fb) Commensurate taxation. Il