San Antonio light. [volume] (San Antonio, Tex.) 1911-1993, 1924-04-09

that promises results, in their opinion,
is to grant amnesty for a limited time
from the penalties imposed for the ex-
port Of capital and to give special In
ducements for subscriptions to Ger
man loans in foreign currency.
Germany needs help from abroad to
the extent of S00,000,OO0 gold marks,
partly to capitalize the new gold bank
of issue and partly to meet expendi-
lures during the period required for
her. to balance her budget. The ex-
perts say that extension of this help,
together with the share the German
treasury will have in interest on the
railroad and industrial mortgages,
will give Germany an incentive to ac-
cept the plan and carry it out.
Heavy Payments Necessary.
The idea that surplus revenue alone
can be applied to the payment of Ger
many's foreign debts is rejected by the
experts. Payments, they declare,
ought to be made to her taxable capac-
ity, and any deficiencies in resources
from mortgages must be made up from
taxation. 1t is a simply the principle
OF justice, they point ont, as contem-
plated in the treaty, that the German
people should be taxed at least as
heavily as the peoples of the Allied
countries, and the only limitations
should be that of practicability.
The experts make distinction be-
tween the amount of money that Ger
many can raise for the reparations
account and the amount that can be
transferred to foreign countries. Cur
| rency and budget instability might re-
suit from overstraining Iof her capac-
ity for making payments abroad.
Preparations, however, they contend
may properly be included in the
budget. The index of prosperity, as in
tcrpreted and applied by the "commis-
sioner," is to be relied upon to arrive
at a proper balance.
Industries Are Improved.
The experts found that Germany
had been spending great sums on her
railroad system, which has been
brought to a point of efficiency I'M
known before the war. The transpor-
tation system and industries generally
are provided with the most modern up.
planes, and ports and terminals
have been extended and improved, fur
nishing excellent sources of revenue
and an adequate pledge, along with
monopolies, for the payment of rep
arations.
With respect to the military as
poets of sanctions and guarantees,
Dawes report says: If political
guarantees and penalties intended to
insure execution of the plan proposed
are considered desirable they fall out
side the committees jurisdiction. CUES.
tons of military occupation also are
not without our terms of reference. 1t,
however, is our duty to point out
clearly that our forecasts are based
on the assumption that economic ac-
tivity will be unhampered and unaf-
fected by any foreign organization
other than the controls herein pro-
vided. Consequently our plan is based
upon the assumption that existing
measucrs, in so far as they hamper
that activity will be withdrawn or suf-
FficieItly niesldied so soon as Ger.
many has nut into execution the plan
rectinmcnGed.
Directors for Roads. !
In agreement With the railway ex-
ports, the committee recommends the
conversion VI the Germany railways
into a joint stock company, adding:
at is not or intention thus to de-
prive Germany Of the administration
of her railways in favor of the Allies.
On the contrary, our plan demands
only a modest return on the capital
cost, and so long as this return is
Forthcoming We do not anticipate any
interference in the German manage
ment of the undertaking"
Tho tI,..a IN hn Ix-
board of eighteen directors, of whom
nne will be chosen by the German
government and the private holders of
preference shares, and the other nine
will be named by the trustee of the
bonds TO be issued amounting to H.
600, 100000 gold marks, five of whom
may be Germans. The compromise of
the board and the general manager of
the railways will be German.
Regarding contributions from the va
rious German industries, the report
says: "The committee has been i'm
pressed with the fairness and desira-
bility of requiring as contribution
to reparations payments from German
industry sum of not less than 5,000,-
100000 gold marks to be represented
by first mortgage bonds bearing per
cent interest and 1 per cent sinking
fund per annum."
Burden Not Too Big.
1t is pointed out that the indus
trial concerns have profited in many
ways through the deprecated currency.
such as the long delayed payment of
taxes by subsidies granted and adj
vances made by the German govern
ment and by the depression Of emer-
goncy money which they issued. Not
outstanding some losses incurred By
these industrial concerns, the commit
tee feels that the burden imposed by
the plan is not too great for them TO
bear.
The provision contemplated by the
committee for treaty payments is as
fellows: Budget moratorium period:
Fist year from foreign loan and part
interest (200,000,000) on railway
bonds, total Of 1000, 100000 gold
marks. Second year, from interest on
railway bonds (inciuding 130,OOO,OOO
bridpte from first year, and interest
! on ind ,strial debentures and budget
contribution, including the sale of rail.
way shares, a total of 1,220,O 100000
gold marks.
Transition period: Third year,
from interest on railway bonds and
industrial debentures. from transport
tax and from budget, total of 1,200,-
000, 900 gold marks, subject to con-
| tingent addition or reduction not ex-
ceeding 100000 gold marks. Fourth
years. from interest on railway bonds
and industrial debentures. from trans.
port tax and from budget, total of
| 1,750.000.000 gold marks subject to
contingent addition or reduction not
exceeuing 250,000,000 gold marks.