The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-04-07
international Bank OF
Emission Would Replace
The Old System
ALLIES TO CONTROL
MONEY PRESSES
Reparations Installments
To Be Increased As
Prosperity, Returns
GERMAN INDUSTRIES
TO BE MORTGAGED
Opposition Thought Possible,
But Entire European Situa-
ton Demands Action


PARIS, April 6.The report of
the experts committee. the most inn
portant document since the treaty OF
Versailles, insofar as It's potential ef-
feet on the European situation Is con-
conrened, is completed to the smallest
detail.
There remains only the difficult
task of adjusting the French transla-
tion, and correcting the proofs. On
the seventh anniversary Of the entrance
Of the United States into the World
war, the committee, headed by an
American, worked throughout Sunday
over the proofs of the document, which
may solve the separations tangle.
1t is expected that the report will
be presented to the reparations com
mission on Wednesday.
The main lines Of the report are
as follows:
Would Create Bank
In order to stabilize German cur
rency, the experts recommend the crea-
ton of a gold bank of emission, with
q capital of four hundred million gold
marks, the bank. would be governed by
a board Of IA directors. Seven mem
/ bers of the board will be Germans,
and seven foreigners, England, France,
the United States. Holland, Switzer-
land, Italy and Belgium would be rep
resented on the board.
The bank would print notes, which
would replace the marks and renten-
marks. The notes would be printed
in neutral countries, and must have
40 per cent of metal to cover them.
Tbs new bank would absorb the present
Reichsbank.
Loans Proposed
bMi4Aee 4e31is ~ haslKet ne
experts propose series Of Attenuation
al loans secured on German railways,
which are valued ut twenty-five billion
gold marks and have an indebtedness
of only four hundred million gold
marks. The larger percentage Of this
loan would be used to retire the renten-
marks. Germany would be required to
raise fares and freight rates, to ensure
a working profit, and agree to foreign
supervision of railroad operations in
order to guarantee security Of the in
vestment.'
The report provides for payments
into the bank for the reparati0ns ac-
count and to cover deliveries in kind
and the expenses of the armies of oc-
cpation. The first year billion gold
marks must be paid under the plan.
This sum increases to two and half
billions in the fifth year. But it is
believed that by that time, Germany
will be functioning normally.
~ 70 vgO
increased in accordance, with certain
index figures of Germany's prosperity.
Ruhr To Be Freed
France would relinquish economic
control Of the Ruhr under the plan, and
control except the controls the plan
itself provides.
The experts further propose the es-
Enlistment Of government monopolies
of sugar, beer, alcohol, salt, tobacco and
matches, with the stipulation that
certain flat minimum sum from the
receipts be deposited in the bank to
the credit of the reparations account.
Nations entitled to reparations could
draw against this amount by check,
either for cash or for reparations mate
rails.
A system of mortgages on Germany's
4 Industrial, commercial and agricultural
properties is also proposed. The mort
cages would be calculated on the pre-
fits the owners of the properties have
4 made by the slump of the mark. Half
4 the profits of this scheme would go
to the reparations. account, and the
ohher half would go into the German,
q budget. E
The scheme aims to make the Ger
4 man people bear faxes at least equal
d to those in allied nations. The experts
do not interfere with the total amount
4 Of reparations Germany must pay.
Reparationis officials declare that the
report is bound to mark milestone
4 in the postwar adjustment of the
a European tansle, and furnish the
II framework for a compromise settle
4 ment by which Germauy's financial and
II economic systems may be rehabiiitated
& and put on a paying basis.
1t is emphasized that this is the first
h plan produced which provides for repa.
rations payments and the balancing Of
the German budget.
FOresee Objections
Officials foresee an outburst Of OBJ
iections from Germany, France and all
Interested parties, but feel these may
CONTINUED ON Page Two)
III e.