The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-04-10
GERMAN RECONSTRUCTION PLAN

Ihe recommendations of the international
committee under the craftsmanship of Cen
eral Charles G. Dawes, to inquire into the
economic conditions in Germany and to for
mulate a plan for reparations payments are
founded on an apparently sincere effort to
bring about the end desired In his letter to
the reparations commission Chairman Dawes
SAYS that the recommendations must be con-
sidered not as inflictins penalties. but as
suggesting means for assisting the economic
recovery of all European peoples and the
entry upon new period of happiness and
prosperity unmenaced by war" This is an
suspicious attitude, and prejudices the reader
involuntarily in favor Of the plan even before
he reads it.
1t is noted that Germany is not to be pitied
or relieved of any share of her burden, but
is, on the other hand, to be assisted into a
stable industrial and financial position where
she can assume her rightful obligations and
discharge them. She is to have her taxes
increased to point where the rate will be as
high as in any of the other war countries.
She is to give mortgages on her industry
and resources. She is to permit her reichs-
bank to be merged into an international bank,
located in some neutral country, which shall
have the clearing of all financial transactions
among the governments party to the Yer
sailles treaty, and shall issue the notes that
shall be used as currency in Germany, these
notes to be guaranteed by a stored balance
of forty per cent. of their value in precious
metals.
It has not been the view of the committee
that Germany should be denied the full right
to economic recovery, but on the other hand
such recovery has been deemed inseparable
from the payment Of her debts and the re-
covery of Europe. As General Dawes puts it:
ITO insure the permanence of the new eco
nomic peace between the allied governments
and Germany, which involves the economic
adjustments presented by the plan, there are
provided the counterparts of those usual eco
nomic precautions against Generalization
which are recognized as essential in all bust
ness relations involving express obligations"
There will be no economic occupation of any
part of Germany, although the allied nations
may maintain strictly military garrisons at
strategic points, provision that lies outside
the strict province of the economic commit
tee.
It is probable that there will be objections
to the plan in both France and Germany. In
France because there is not sufficient grim
ness perhaps in the manner of applying the
stipulations; in Germany because there is
still the German reluctance to admit the debt,
or its possibility Of payment. Yet the plan
makes it clear that Germany can pay the
debt within fifty years and make complete
economic recovery at the same time. There
fore. France should be content, because the
plan insures the collection Of the reparations
in full. Germany should not object, because
it rids her of foreign interference in her in
dustries, restores her finances, re-establishes
her credit, provides for the discharge OF her
documentary obligations, revives her foreign
trade and lays the foundation for the recon-
struction of her national honor. Yet, In spite
of this most alluring vista. there are already
rumblings of German official discomfort.
PERHAPS that is the reaction to be expected
in view of Germany's cumulative laundering
to date.
Finally, however, it is expected that the
Dawes plan will win the approval OF all
concerned, and that the economic progress Of
Europe, 80 long repressed, may resume its
forward march, The whole world hopes that
such will be the case.