San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-09
EXPERTS PLAN
ORRETURN Of
FLED CAPITAL
Suggestions for New Bank
Go Far Beyond Schacht's
Scheme.
WILL REQUIRE TIME
Says Germans Must Have
Free Economic Rela-
tons With Nations.

Paris, April 9.-Part two of the
Dawes committees report deals with
the conditions the experts found con-
fronting them when they began their
work, gives the reasons which led
them to some of their conclusions and
goes into various details regarding the
currency. the finances, budget-making
and the imposition of taxes and means
of collection and administration.
The committee points on that
when it took up its task, the Ger
man currency could hardly be called
stabilized, but was rather in what
might be called state of unstable
equilibrium as measured by gold
value, the currency was deficient IN
volume, rather than excessive, being
only about half the pre-war volum1,
and to meet this there had been a
resort TO various devices to substi-
tutes, such as the use of foreign cur
rencies, token money and ultimately
the establishment of the rentenmark.
AS regards the temporary cquilibri-
UNI, the currency has reached, the com
mittee found the psychological aspect
to have played an important part, not
ably by reason of the efforts being
made to balance the budget and the
appointment of an expert committee
by the reparation commission.
Dearth Of Liquid Capital.
The prevailing conditions, the com
mittee found, had produced a deartb
of liquid capital, but there were re.
thrD,toh ,,-bioI, tb;, ,,,;nhN la
remcdied. For instance. the German
balances abroad and the foreign cur
rencies held by the peOple-resourccs
which would be available if there were
confidence in currency stability. In
addition the need was felt for new
bank, the establishment of which was
necessary to restore the old condition
of German banking and in its desire
TO see such bank established, the
committee went far beyond the orig
inal gold bank plan formulated by DR..
Scha chit, the German currency COM
missioner.
The report then takes up the ques-
ton of the measurement of Germany s
burden and of what it calls common.
surate taxation. In Germany's dealing
with her internal debt, her position Is
contrasted with that of the allied
countries with their special budget
provisions for debt interest and re-
duction. The problem was how to find
a commensurate tax burden morally
defensible and the committee expresses
the feeling that with Germany fully
restored, and economically prosperous
its recommendations ARE we'll within
what can be morally justified on the
principle of commensurate burdens"
To Take Time for NOrmaiity.
Taking up the subject of the budget
of 1024-2J, the committee notes that
the estimates were made under cir
cumstances of an economic crisis and
points out that normality cannot be
effected overnight. Three essentials
however, were considered by the Ger
man finance minister necessary to en-
able the estimates to be lived up TO-
these being:
| First, that the bank of issue, which
would serve as a basis for the grant
of credits, will be established second
that the full development of German
economic life should not be restricted
by the severance Of the Ruhr and the
Rhincland: third. that Germany en-
joy complete freedom in her economic
relations with other countries
| The committee adds:
| The first and second of these con
ditions will be fulfilled if our recon-.
mendations are accepted. and they ap.
pear TO us to be essential to budget
equilibrium. As regards the third, WI
understand that Germany's CONNER
cial freedom is restored under the
terms Of the treaty in less than twelve
months time.
''The budget, the committee feels, i:
exposed to real risk of deficit. largel,
by reason that the revenue may moi
come up to the estimates. As to the
expenses, however. it considers that
the amount for unemployment relic
will probably be not so great as est
mated.
Speak Of Taxation.
Regarding taxation the report finds
the income tax insufficient as bearin;
upon the weather. classes. who havt
escaped with less than their shape o.
the national burden and reassuranc,
by Germany that the income ia,
scales shall be properly adjusted j,
necessary if she desires the allies ant
her own working classes to realize it
good faith"
Another need, the committee finds
is the establishment of clear prin
ciple for governing the financial re
lations Of the Reich and the fedora
states and communes. 1t considers j
essential that at the earliest possible
moment preparation of complete sta
tistics of receipts and expenditures o
the states and communes be resumed
The financial systems of these ar
such, it points out, that the Reicl
budget might be suffering from vari
Gus ills while at the same time tn
communal budgets were enjoying con
siderable prosperity. 1t makes no dc
tailed recommendation ON this point
but holds out the idea that self inter
est might be largely relied upon t
bring about an adjustment if the com
mittee's recommendations are accepte
in their entirety.
SECOND COMMITTEE REPORT
| Prevailing Conditions Have Cause