The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-04-10
AMERICA GIVEN
PART IN PLAN
TO AID EUROPE
Commissioner Of Control
Bank Would Rule
On Capacity

PARIS. April 9.-(By the Associated
Press. THE report of the experts who
have been engaged for the past three
months in the task of ascertaining Ger
many's capacity to pay separations was
handed to the reparation commission
today. The two committees under the
Craftsmanship of Brig. Gen. Charles G.
Dawes and Reginald McKenna, respect
lively, have gone deeply into the intrica-
cies Of the many problems connected
with reparations, and, as mentioned in
the covering letter, they approached the
task las business men anxious to OBJ
tain effective results"
The League Of Nations is drawn into
the PREPARATIONS problem by the Dawes
report. while an unofficial representa-
tive Of the United States is slated for
an important role In the execution Of
the experts plan. An American men,
Der OF the general board Of control for
the proposed new gold bank Of issue Is
quite likely TO fill the important post
to decide when Germany's capacity to
pay has been reached. while the league
finance committee will be asked to arbi-
trato II the commissioners decisions In
applying the Index Of prosperity" are
disputed by either Germany or the
Allies.
Bereft OF Politics
A business matter bereft of politics is
how the experts describe the task they
have just completed. They interpreted
the object of their work as tending to
the collection of the debt rather than
to the application of penalties with a
purely economic solution in view.
Recognizing the obligation of Ger
many to pay, and declaring that she has
resources with which to pay, the ex-
perts insist that if Germany does pay
she must have her hands free to exploit
her economic resources.
The experts carefully omit in their
report mention of the Ruhr, but make
it plain that the French and Belgians
must satisfy themselves by leaving gar
risons in the Ruhr if they see fit, but
take their hands off the Ruhr and
Rhincland railroads and the Ruhr in
dustries.
The first prerequisite to the payment
of reparations, the experts assert, is
sound money In Germany. They pro-
pose to this end the establishment of
gold bank of issue with 100000, 900
gold marks capital in the organization
of which they make it to the interest
advantage of the Allies, to cooperate.
Germany's production, they said, will
enable her to meet her own requirements
and raise amounts to apply to repara-
tons as contemplated in the plan.
These payments, fixed on a sliding
scale. run from 100000 gold marks
in 1926 to 2,5O0,O00,O0O in 1884.
In order to prevent these payments
from affecting adversely Germany's
financial stability, an index of prosper
ity has been fixed making 1t possible
to judge whether the amounts of the
scheduled payments are or are not be-
yond her capacity.
Allied Board OF Control
A general board of control, including
an American. with allied, neutral and
German members. is the experts solu-
ton of the difficult problem of guaran-
tees that Germany will execute the
terms of eventual settlement under their
plan. The experts found this plan most
likely to satisfy the Allies and at the
same time prove acceptable to the Ger
mans. One member of this board, with
the title of commissioner. will be vested
with the important duties of deciding
according to an index of prosperity
when the payments provided for in the
plan may prove too Onerous and may
threaten the upsetting Of German fl
nanceS.
The index is to be based upon Ger
man exports and imports. the total bud
get receipts and expenditures, railroad
traffic, the monetary value of the con-
sumption of sugar, tobacco. beer and
alcohol by the total population and the
consumption of coal. Percentages will
be fixed on the average statistics COW
ering these bases first for three years
and then for six years, the percentage
of each six groups compared with the
base being separately computed and
lCOntinmah ON Papa Fnnrl