Evening star., 1924-04-09
LEAGUE EISCIVEN
ARBITRALPOWER
American Is Slated
TO Get Important
4 Bank Position.
Sy the Associate Press.

Nsxperts who have been engaged fol-
the past three months in the task
of ascertaining Germany's capacity
TO pay reparations was handed to
the reparation commission today. The
two committees under the chair
manship of Brig. Gen. Charles G
Dawes and Reginald McKenna
respectively, have gone deeply into
the intricacies of the many problems
connected with reparation and, as
mentioned in the covering letter
they approached the task "as busi-
ness men anxious to obtain effective
results"
The league of nations is drawn into
the reparatfons problem by the Dawes
report, while an unofficial represent
ative of the United States is slated
for an important role in the execution
OF the experts plan. An American
member of the general board of con-
troll for the proposed new gold bank
of issue is quite likely to fill the i'm
portant post. of commissioner" His
p,any's capacity to pay has been
1eached, while the league finance
rommittee will be asked to arbitrate
IF the commissioners decisions in ap-
plying the index of prosperity" are
disputed by either Germany or the
allies.
Economic View Supreme.
is how the experts describe the task
they have just completed. They in
terpreted the object of their work as
tending to the collection of the debt,
rather than to the application of
penalties, with a purely economic So
luton in view.
Recognizing the obligation of Ger
many to pay and declaring that she
has resources with which to pay, the
experts 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
garrisons in the Ruhr, if they see fit,
but taking their hands off the Ruhr
snd Rhineland railroads and the
Ruhr Industries.
Sound Money Put First.
The first prerequisite to the pay
ment of reparations. the experts as
sert, is sound money in Germany.
They propose to this end the estab-
1ishment of a new gold bank of issue
with 400, 900, 900 gold marks capital, in
the organization of which they make
it to the interest and profit of Ger
many, as we'll as to the advantage Of
the allies, to cooperate.
Germany's production, they say, will
enable her to meet her own require
ments and raise amounts to apply to
Preparations as contemplated in the
plan. The payments, fixed on a slid
ing scale, run from 110,000.000 gold
marks in 1926 tc $500. 100000 in 1894
In order to prevent these payments
from affecting adversely Germany's
financial stbaility, an index of pros
perity has been fixed, making 1t pos
sible to Judge whether the amounts of
the scheduled payments are or are not
beyond her capacity.
American on Board.
A general board of control, includ-
ing an American, with allied, neutral
and German members, is the experts
solution of the difficult problem of
guarantees that Germany will execute
the terms Of eventual settlement un-
der their plan. The experts found
this plan most likely to satisfy the
allies and at the same time prove
acceptable to the Germans. One men,
ber of this board, with the title of
commissioner. will be vested with
the important duties of deciding ac-
cording to an index of prosperity
when the payments provided for in
the plan may prove too onerous and
may threaten the upsetting of Ger
man finances.
The index is to be based upon Ger
man exports and imports, the total
budget receipts and expenditures,
railroad traffic, the monetary value
of the consumption of sugar, tobacco,
beer and alcohol by the total pop
Percentages will be fixed on the aver
age statistics covering these bases,
first for three years, then for sic
Years, the percentage of each of the
six groups compared with the base
being separately computed and the
average of the six percentage results
forming the index. .
Supplemental Payments.
When the resources exceed the in
dcx. supplementary payments on repa-
rations are to be made in proportionate
amounts; when the index proves de-
ficient, basic payments shall be made
for the period on which the calcula-
tions are based But subsequent sup
Elementary payments shall not be-
come due until allowance has been
made for previous deficiencies.
At this point the league of nations
is brought into the plan; any dis
ruted point upon the application Of
the statistics on this index is to be
tContinued on Page 4. Column u