The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-04-10
WALL ST. PLAN
SCRAPS TREATY
OF VERSAILLES
Dawes Experts Put
Mortgage on Europe
CONTINUED from page y

of Versailles. We have been con-
cerned with the practical means of
recovering this debt, not with the
imposition Of penalties and guar
antees which we propose are eco
nonic, not political" the committee
said, by way Of explanation.
Consideration was given to what
extent balancing Of the budget and
sterilization of the currency could
be re-established in Germany as she
actually is at the present moment,
with limitations as to her fiscal and
economic rights over part of her
area.
1--WE should say at the outset that
we have been unable to find any
practical means Of ensuring per-
manent stability in budget or cur
rency under these conditions" the
experts reported. "We have there
fore, been compelled to malSe the
assumption that the fiscal and eco
nomic unity Of the reich will be
restored.
Modify RuhT Occupation?
Our plan is based upon the as
sumption that existing measures in
so far as they hamper German eco
nonnic activity viii be withdrawn or
sufficiently modified so soon as Ger
many has put into execution the
plan recommended"
The committee expressed the
opinion that if occupation of the
Ruhr were modified, settlement Of
PREPARATIONS "must be reinforced by
adequate productive securities
Referring to the economic po-
tentialities of Germany the report
said "the task would be hopeless if
the present situation in Germany
accurately reflected her potential
capacity but, Germany is well
equipped with resources. She DOS
sesses the means Of exploiting them
on a large scale and her present
credit shortage has been overcome.
She viii be able to resume ia
vored position in the activity of the
world"
The committee outlined it's plans
for a new bank of emission. to have
a capital Of 400 million gold marks,
part to be subscribed in Germany
and part abroad. The bank would
be administered by a German presi-
dent and a German managing board.
Alongside this managing board
there would be another board. called
the general board which would con-
sist of seven Germans and seven
foreigners.
Proposed Relief for Germany.
The report goes into detail about
provisions relative to the issuance
Of notes and maintenance Of the
banks reserves and provides for
majority over which would give the
allied members Of the general board
controlling vote. The BENEFITS that
would accrue to German labor from
sterilization Of the German cur
rency are noted.
For the working classes insta-
bility is always evil" the report
says. at has no compensation
whatever"
II the statutes Of the proposed
bank are strictly observed there can
be little danger Of future imitation,
he experts declare.
The proposed relief for Germany
during the next two fiscal years is
detailed.
an addition to stable currency,
the 34.-,budget requires certain re-
lief from immediate charges for
treaty purposes the report says,
adding "while securing the budget
airy position this will not imply ces-
sation Of payments indispenb,e to
the allies in the form of deliveries
in kind and the basic pnciples of
Germanys annual burden"
fastening to reassure what is
considered the French viewpoint,
the committee says:
Want German Capital TO Return.
1--WE repudiate of course, the view
that Germany's whole domestic de-
mands constitute a first charge on
her resources and that what is avail
abe for her treaty obligations is
merely revenue that she may be will
ling TO realize. Rut If the prior
obligations for Preparations. to-
gether with an irreducible minimum
for her own domestic expenditures
make up 49,. sum beyond her
taxable capacity, then budget insta-
bility at once ensues and currency
stability is also probably involved
The experts stress their belief
that Success Of our proposals to
attain financial sterilization depend
essentially upon return of conf
dence."
Without this. German capital in
vested abroad will not return, for
eign capital will not be attracted
and even collection Of taxes will be
impossible, the report says.
Taxation Burden On People.
In discussing a plan to regulate
Germany's future payments in &C.
cordance with her increasing pros
perity, the experts hold that "the
German people should be placed un-
der a burden Of taxation 1T least
as heavy as that borne by the people
Of allied countries. II particularly
questions that the Weather classes
nave paid their fair share in the
mast