The Omaha morning bee. [volume] (Omaha [Neb.]) 1922-1927, 1924-04-07
.StabiliZing
of Currency
.toBeSought
Report, According to Semi
Official Summary, Recon-
mends Placing of Repara-
tions in New Bank.
Railways to Be Returned
By Universal Service.

Paris, April 6.-The following semi
official summary of the report of the
Dawes committee of experts was OBJ
tained from the highest sources here
tonight 1t reveals that the whole
scheme Is based on the relinquish-
ment by France and Belgium Of the
whole system for the collection OF
reparations which has been built up
in the Ruhr and Rhinsland.
Not only the railways must be re-
turned to Germany. but the tax re-
ceipts and other monies now collected
by the Franco -Belgians must 90 into
a special department of new gold
bank created to bring sanity TO Ger
many's money.
The Dawes experts had two oues-
tions-nrst, to stabilize the German
budget; second. to restore German
currency TO a gold basis.
New Bank Proposed.
They attacked the second question
first. Counting paper monsy, bonds.
rentenmarks, industrial gold notes,
divisionary money and treasury
notes, German currency totals 3.299,-
600, 900 gold marks. In order to
bring back the gold basis. the ex-
perts propose a new bank Of ennis
sion 10 replace the reichsbank. It Will
have Il directors-seven Germans.
one American, one English. one Ital-
ian, one French, one Dutch. one Bel
gisn and one Swiss, with president
who will be German.
The powers OF emission will be lin
tied by an allied controller who. in
order TO prevent imitation. will forbid
any credits 70 the treasury. The new
bank will not discount treasury bonds
except TO private individuals.
The capital OF the new bank viii
be 400 .o00. 900 gold marks. 100. 600 .e0o
Of which VIII be taken up BY the
reichsbank. The balance will be di-
vided into 100000 fo0-mark shares.
which will be offered 10 the public.
Railway Society.
The aim OF the new bank viii be
to buy in all the rentenmarks.
amounting TO 1.2oo, 900 900 gold
marks. which II viii do with the
subscribed capital of 4oo. .ooo. 900 gold
marks. with reichsbank gold totaling
$50, ,ooe. 900 gold marks, and an addi-
tional 4oo. 900 900 TO Be raised BY an
international loan.
A special department Of the new
bank viii be created 10 receive the
various receipts provided for In q
second plan. which 10 & railway CO.
ciety with . capital OF $4,000. .ooo. .oot
gold marks. organized on the same
lines az the bank.
This capital VIII b divided into
II 600 .ooo. 900 ordinary shares 70 be
taken up ~by the German govern
ment, and 1900. 10000 prefer
ence shares bearing SIS per cent IN
terest. These obligations win Be de-
posted with tbs committee on repe--
atoms, who VIII issue them to world
marketa
New Taxes Recommended
The next step viii be the creation
Of a holding company to manage q
first mortgage OF 10000. 0oe. 900 gold
marks on Industrial and land prop
erty. OF these shares. 5000. .ooo. 900
will 80 to the allies for issuance and
4 4.oee. .ooo.o 10 the German govern
ment.
The committee further recommends
an entirely new series OF gold taxes
on spirits. tobacco. wine, beer,
estimated 10 yield 1900 ,eoe.-
600 sold marks q year. which VIII be
renlitted 70 the banks accounting de-
partment and divided equally b.
tween Germany and the allies.
The committee declares that n Is
certain that Germany itself win be
unable to make any payments until
the excise year OF 1889 and 90 sun
another tax on transportation, valued
At 2eo,ooo,0oo gold marks annually,
win be imposed. which Will hs the
basis for another series OF interns-
tionsl loans with which TO psy repsr-
atoms during the next four years.
and the expenses OF keeping the
troops on the Rhine.
Plans For Loans.
For 1924 and 1895 the expert. ex.
pect 10 borrow only l.eeo. .ooo. .oOo so,d
marks, each successive loan being in
proportion TO the amount for the
transport tax and other taxes avail.
able as guarantees. Two hundred
millions WI Re borrowed on railway
gross receipts. and an SEQ. 600 600 IN.
ternationsl lean VIII be saSed OF the
railways, the interest on which VII
be taken care of hy the $4,000. eco
sold marks unused frem the trans.
port tax
The iesS-ss loan viii be i.ss0.ooo.-
GOO seid marks. for 1882 il VIII -.
tfnrn 90 rsse Tive. Column YNurA