Evening star., 1924-06-16
IN TODAY'S SPOTLIGHT
BY PAUL y. COLLINS.

The nomination of Brig. Gen
Charles G. Dawes for the vice presi-
dency has had an unexpected reac-
tion in Europe.
1t is greeted in Berlin with aston
ishment in its supposed warning to
Germany, since it is interpreted
however unauthoritatively-a an
American official Endorsement of the
Dawes plan" The Reichstag had
already accepted the plan. though
certain amendments of the constitu-
ton were necessary to make it legal,
but the Nationalists were scheming
to oppose the amendments. The
Nationalists, whose dream is to re-
build Deutschland ueber allies" re-
store the monarchy and defy the
prospect that they are to meet the
Americans in support of the French
and English In requiring Germany
really to pay her reparations.
The French anti-Poincare party of
the Left, succeeding to mower on the
very day of the Dawes nomination,
rejoice in their assumption that "the
American-indorsed Dawes plan" will
enable them to collect where the
Millerand-P Poincare invasion Of the
hunr mas 1alled. monsieur DaW eS
is no less popular than Herr Dawes"
X X X
About as many Americans have
studied the intricacies of the Dawes
plan as have comprehended the Elm
stein theory. and considerable mis-
many prevails.
The Germans are accused of con-
spiracy, of Righteousness against
meeting the obligations of repara-
tions. They are accused of having
sequestered their wealth in foreign
investments for the purpose of evad
ing taxes to meet the debt. Capitalists
have continued to live in luxury,
taxes have been lower than in the
starving of the poor of Germany
have been doubted, for to the out
slider the situation was summed up
in the statement that Germany had
suffered no invasion. no devastation,
and had all her labor resources that
had existed before the war. less only
those killed or incapacitated in bat
tie. Hence with the tradition of
Germany's surprising efficiency" II
now she did not pay her obligations
II seemed certain il was due to the
will to defeat the Versailles treaty.
1t has therefore been asserted with
cocksureness that all that was
needed was to open her mills, in
stead of her mints," and get to work.
The dictum has been accepted that
when Germany produced more wealth
than she consumed the excess could
be applied on her debt, and all would
be well. From that viewpoint, then,
what were the problems which have
been solved by the Dawes plan?
y 4
German efficiency" has been vaunt-
ed until the impression has been
given that. surprising all other
peoples, the productivity OF German
labor, prior to the war. was un-
equaled and was accommodating great
wealth in her treasures. On the con-
trary. the German trade balance was
unfavorable for twenty consecutive
years before the war" according to
a book, "Germany's Capacity to Pay =
by DIR. Harold G.. Moulton and Or.
Constantine Z. Mcclure, published by
the Carnegie Institute of Economics
The excess of imports over exports
would have impoverished Germany
without a war but for the revenues
derived from foreign investments,
estimated in 1913 TO amount to eleven
and a half billion gold marks. When
confscated by the alien property Gus
todians of the various countries at
war with Germany. and they have
not yet been restored. That loss of
income left Germany with nothing TO
cover her continued and increased
unfavorable trade balance.
X X
Prior to the war Germany pro-
duced only so per cent of her food
Today she is producing only 20 per
cent of her pre-war requirements and
importing far less than before 1914.
Tho difference is made up in de-
creased rations. 1t is reported by
scientists that the people are eating
only half the calories required to
maintain efficiency in labor.
In the British Parliament it was
said a year ago that owing to labor
saving machinery in America the
American wage Garner produces five
times the output of an English me-
chanic. II that be true in England.
the proportion doubtless holds true
also in Germany. where labor-saving