The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-04-09

A~0 . ACRACSSAtoAN~S ON
investigation of Germany's finan
C.. Dawes, chief of staff; Owen
bank the situation will temporarily
not allow of application of the rule
of cc-crtibility. 1T therefore sug-
created which will be kept stable
conditions permit, De placed on a
convertible basis like the present
Reichsbank.
Covers All Branches
1.-THE new bank will serve as
Bankers bank, rediscounting the
safest category of short-term bills,
etc.. so establishing an oficiai rate
of discount. 1t will also handle for
other banks the Giro system for
transferring bank credits. The
bank will deal with the public, max
ing short time commercial loans and
discounts, effecting transfers and
receiving deposits. 1t will be the
depository and fiscal agent of the
German government. 1t may make
short-term loans to the government
but the amount and character of
these loans are strictly limited and
granting of such loans is carefully
safeguarded.
1.-THE German government is to
participate in the profits of the
sbank, but the bank is to be
entirely free from governmental
control or interference. Treaty
funds collected in Germany are all
to be deposited in the new bank to
the credit of special account and
are only to be withdrawable by
creditor nations under conditions
and safeguards which will adequate
ly protect the German exchange
market and the interests of creditor
nations and German economy.
'The new bank will have a
capital Of 40O. 900, 900 gold marks.
part to be subscribed in Germany
and part abroad"
Annex one, attached to the report,
gives the capital structure of the
bank as follows:
Structure Outlined.
1.-THE bank shall have a cash paid
up capital of 400 100000 gold marks,
which shall be in registered or
These shares shall be issued as fol-
lows: 100000 shares to represent
the assets of the Reichsbank; 3,000,-
900 shares for subscription in Ger
many and abroad.
"All shares shall be alike and
after initial subscriptions have been
accepted no restriction shall be i'm
posed upon their purchase and sale
At1 hnv iofi nr &c
Of German law as shall apply to the
purchase and sale of shares of
other banks.
Shares, whether sold in Ger.
many or abroad, shall be paid for
their current gold values.
Subject to the preceding provi.
sion Of this section the shares of
the new bank shall be allotted and
sold on such terms as to prices,
times Of payment and other condi.
lions as are most advantageous to
the bank"
To Be Run by Germans.
Continuing, the main section OF
the report says, concerning the
bank:
ut is to be administered by a
German president and German man.
aging board which can have the
assistance, as in the case of the
,Reichsbank, of a consultative com.
mittee. Alongside this German man.
aging board there is to be another
board called the general board
which will consist Of seven Ger.
mans and seven foreigners, with one
each of the following nationalities,
British, French, Italian, Belgian,
American, Dutch and Swiss.
"The general board Is given broad
powers in such matters of bank
organization and operation as might
affect the interests Of creditor ma
tons. One of the foreign members
! OF the general board will be known
as the commissioner. He will be
responsible for seeing that there is
no infringement of the provisions
relative to the issuance Of notes and
the maintenance of the banks re.
serves. Decisions of the general
board will require a majority vote
or ten OF the fourteen members,
unless both president and commits.
sionerNare included in the majority,
IN which case a simple majority
Will be sufficient. Thus cooperation
by members of both groups is neces.
sary for action.
Budget and Temporary Relief.
Attention may now be directed
to the other main aspect of our
problem, the balancing of Ger.
many's budget. We propose to deal
first with the general budget of
the reich, and secondly and separ-
ately with railways which at pres.
ent are contributing nothing to the
general budget. Balancing the
budget is, like sterilization Of the
currency, of little value unless II
can be maintained.
I'VE repudiate, Of course. the
View that Germany's full domestic
demands constitute first charge
on her resources and that what is
| available for her treaty obligations
is merely surplus revenue. That
she may be willing to realize. But
at the same time If the prior obi
cation for PREPARATION that is fixed
for Germany to pay, together with
an irreducible minimum for her
own domestic expenditure, make
up in a given year a sum beyond
her taYnhlQ ranaCify thar, h,,,yco,