The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-04-09
PROPOSALS
GIVEN IN
DETAIL
Commissions Problems, With
Conclusions, Cover Every
Conceivable Angle.
Nnecial Cable Dispatch to The Washing
ton Times.


Special Cable Dispatch to The Washing
ton Times.
PARIS, April 9.-Following are
che most important chapters IN
Danes report on Preparations, made
public today:
1--WE have approached our task
a. business men anxious to obtain
effective results. We have been
concerned with technical, not po-
litical, aspects of the problem pre-
scented to us. The dominating fea-
ture of the German budget is
Germany's obligation to the allies
under the treaty of Versailles.
We have been concerned with the
practical means Of recovering this
debt, not with the imposition of
Penalties; and guarantees which
we propose are economic, not po-
1itical. The German economic
unity committee has had to con-
slider to what extent this balancing
OF the budget and sterilization of
currency could be re-established
permanently in Germany.
Politics Avoided
III political guarantees and PEN
altles intended to insure the execu-
ton OF the plan proposed are con-
9tdered desirable they fall outside
the committees jurisdiction. Our
plan is based upon the assumption
that existing measures, in so far as
they hamper that activity, will be
withdrawn or sufficiently modified
30 soon as Germany has put into
execution the plan recommended;
and that they win not be REIN
posed except in the case Of fragrant
failure to fulfill the conditions &C.
copied by common agreement. In
case of such failure it is plainly for
creditor governments, acting with
the consciousness of joint trustee.
ship for the financial interests of
themselves and of others who will
have advanced money upon the
lines Of the plan, then to deter
mine the nature of sanctions to be
applied and the method OF their
rapid and effective application.
I'm saying-this we wish to add
at once that if the economic sys-
tenn now in operation in thH occu-
Died territory is modified, we are
unanimously of the opinion that
settlement Of the reparation must
be reinformed by adequate produc-
tive securities. We propose for this
purpose a system OF control Of
which we believe will be effective
oS he 1f
to impede return to financial sta
bility.
Two Main Problems
LAS the terms of reference indl-
cate, two principal problems were
submitted to us for inquiry; sta
Utilization of German currency and
balancing of the German budget. 1t
IL self-evident that these problems
are interdependent
"Germany's growing and indus
trious population, her great tech
nical skill, her wealth, her mate
rial resources, the development of
her agriculture on progressive
lines, her eminence in industrial
science-aH these factors enable us
to be hopeful with regard to her
future production. Further, since
1919 the country has been irnprov-
ing it's plant equipment. Experts,
especially appointed to examine her
railways, have shown in their re-
port that expense has not been
spared in improving the German
railway system.
Telephone and telegraph COM
munications have been assured
with the help of most modern ap-
pliances. Harbors and canals have
likewise been developed Lastly,
industrialists have been enabled
further to increase their entire
modern plant, which now is
adapted in many industries to pro-
duce a greater output than before
the war. Germany, therefore, is
we'll equipped with resources. She
possesses means Of exploiting them
on a large scale. When the pres
ent credit shortage has been over
come she will be able to resume
q favored position in the active
world where normal conditions of
exchange are gradually being re-
stored. Without undue optimism
it may be anticipated that Ger
many's production will enable her
to satisfy her own requirements,
raise amounts contemplated in this
plan for reparation obligations, and
restore her financial situation and
currency as well.
New Bank of Issue.
'The committee proposes the
establishment of a new bank of
issue in Germany, or, alternatively,
a reorganization Of the Reichbank
as an essential agency for creating
In Germany unified stable cur.
rency. Such a currency, the COM
mittee believes, is necessary for
the rehabilitation of Germany's
financial balancing her budget and
the restoration Of her foreign
credit.
"The principal features of the
bank plan are Is follows: The bank
Is to have the exclusive right with
certain minor qualifications, to issue
paper money in Germany for the
period of its charter, fifty years.
All of the many kinds of paper
money now in circulation in Ger
many, except limited note issues OF
certain state banks. are to be grad.
ually withdrawn from circulation,
giving place to a single uniform
paper currency. These bank notes
will be protected by a normal legal
reserve of 33 1-3 per cent and by
other liquid assets. The reserves
will be held largely in form of de.
posits in foreign banks.
1.-THE plan contemplates that as a
permanent policy the notes of the
bank shall be redeemable in gold
but the committee is of the opinion
Mat at the time of inception OF the