The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-04-09
Dawes PRESENTS plan
To AID Germany
Continued from Page ~

reserve, should be established
abroad, but such a guarantee was
considered political and was re.
jected by the committee.
Would Restore Credit.
The report began by saying that
a solution Of the problem confront.
ing it implied restoration Of Ger.
many's credit both at home and
abroad. After saying that military
aspects wer ebeyond the commit.
tees Jurisdiction, the report con-
tinued:
Military aspects contingent
upon sanctions and guarantees, if
political guarantees and penalties
intended to insure the execution
OF the plan proposed, are considered
desirable, they fall outside the
committees Jurisdiction. Questions
OF military occupation also are not
within our terms Of reference. It is
our duty, however, to point out
clearly that our forecasts are
based upon the assumption that
economic activity will be unhamp.
cred and not affected by any for.
eign organization other than the
controls herein provided.
Consequently, our plan is based
upon the assumption that existing
measures, in so far as they hamper
that activity. will be withdrawn or
sufficiently modified as soon as
Germany has put into execution the
plan recommended. and that they
Win not be reimposed except in case
or fragrant failure to fulfill the con.
ment. In case of such failure it
is plainly for the creditor govern
ments, acting with the consciousness
of joint trusteeship for the financial
interests of themselves and others,
who will have advanced money on
the lines Of the plan, then to de-
termine the nature of the sanctions
to be applied and the method Of
their rapid and effective application.
Guarantees Needed.
In saying this, we wish to add
at once that, If the economic sys-
tenn now in operation in occupied
territory is mod fled, we are unani.
mously Of the opinion that a settle
ment of reparations must be rein
forced by adequate, productive re-
curittes. We propose for this pur-
pose a system of control which we
believe will be effective and at the
same time such as not to impede
the return Of financial stability.
The committee dealt first with
the budget: then with the German
railways which, at present, are con-
tributing nothing to the budget.
The report said that the budget re-
Quires certain relief from imme-
date charges for treaty purposes
Preparations payments) and must be
balanced permanently: not tenn
porarily.
Germany to attract capital (domes-
tic and externaD for investment, the
report continued, adding that there
must be settlement assuring both
Germany and outside nations that
for a considerable period neither
finances nor foreign relations will
be endangered by renewed disputes"
In other words, the committee wants
the present arrangement to be per-
manent with no further reparations
squabbling in the future.
AS we shall see, our scheme
needs both foreign and internal sub.
scriptions to the bank of issue"
said the report. "And in particular
an external loan as an essential con
dition enabling and assuring repa-
rations payments. We fully recog-
nize the justice OF maintaining the
principle embodied in the treaty
that payments should increase with
what may prove to increase her
CGermany's) future capacity"
The committee said It was not
competent to fix q definite mum.
Der of annuities that Germany
should pay.
The present index of Germany's
prosperity, as now in use, is held
inadequate and should be altered.
The allies are to judge by this in.
dex how much they will be able to !
share in Germany's increased pros.
perity.
Normal BY 1880.
The committee believes that by
the end of the fiscal year of 1928.29 |
the financial and economic stu |
alton in Germany will have returned
to normal and that in this and
subsequent years the budget should
contain a sum of 1850, 100000 gold
marks for application upon the re.
paration debt. The total sum pro.
vided from the ordinary budget re.
sources would be the standard paw.
ment Of 1,200,000,O00 gold marks
plus the additional sum computed
upon the growing prosnerity of Ger
many beginning In 1880.
1t was suggested that q general |
mortgage Of not less than 5000, 000.-
900 gold marks be placed upon Ger
MANY. First mort gage honda nav. '
ing s per cent would b issued