The Washington times., 1924-04-09
DAWES MAKES REPORT
ON PREPARATIONS To
ALLIES GROUP
By FRANK E. MASON.

by FNkAINA Z. N1AOON.
PARIS, April 9.-The worlds greatest pro-
gram for the financial restoration of a tenn
porarily bankrupt nation-the German re-
public-is outlined in a report presented to
the Inter-Allied Preparations Commission to-
day by the international committee. Of rep
arations experts headed by Gen. Charles G.
Dawes, of Chicago.
The plan recommends the creation of
new bank issue, capitalized at 400, OOO, 900
gold marks approximately $1OO, OOO,OOOO,
to act as the allies chief fiscal agent in Ger
many; an external loan to assist in the bal
ancing of the budget and the restoration of
confidence in Germany's financial and eco
omic life; issuance of 1000, GOO, 900 gold
marks preferred shares by the German rail-
ways to be sold to the public; and an elab-
crate and detailed plan for balancing the
German budget SO that Germany can resume
reparations payments as soon as the tran
sition period gets fully under way.
HAD DOUBLE TASK
II was the double task of the committee to
point the way to sterilization of German currency
and the balancing of the budget. 1t was strictly
business mans report" ignoring pclitIca! ques-
tons and avoiding military matters, including oc-
cupation of the Ruhr, outside the jurisdiction
of the committee.
After outlining various phases of the plan, the
report turned to PREPARATIONS payments (peace
treaty charges), saying:
1--WE therefore recommend that in the fiscal
year 1926 Germany should be required to meet
peace treaty charges out of her budget to the
tent of 25O,OOO,OOO gold marks. If Contrary to
our expectations) the budget fails to realize
5OO,OO0,OOO gold marks from the sale of (raiway)
preference shares consider that any resultant
deficit could be met by an international loan.
The proceeds of the transport tax should there
fore not figure in the revenue side of the budget
except to the extent to which they exceed 24OOOO
gold marks in 1925-26 and 29O, 900 900 gold marks
in subsequent years."
REACH DEFINITE CONCLUSIONS.
Further on in the section devoted to conclusions the
report said: We have taken into the probable
yield of her (Germanys) several and her taxable
capacity whole and the probable changes in ex-
pendure under these improving conditions, and after
making full allowance for error, have reached def
mite conclusions to the which be fixed for
treaty charges without endangering the stability
of the budget. These results have considered in
relation to the maximum probable rate which the
national income be expected grow from present
point and the maximum proportion of that growth which
can successfully be absorbed in taxation.
eve draw the conclusion that allowance being made
for some inevitable growth in expenditure the budgets
for the three subsequent safely provide
the following maximum
1926-27, 900 gold marks; 1928, 500, OOO-
600 gold marks; l92s-29' l,25O,OO0,0OO gold marks"
Inc report continues 'nS' calls for commensurate
these figures might be sub taxation in Germany"
ject to modification, under The committee proposed
certain conditions, Ger either that new bank of
many's recuperation is not issue be created or the
sufficiently rapid to justify ReichsbanE be recruanzed
them along the lines suggested
The report points out that for the establishment
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