Evening star., 1924-10-05
DAWES PLAN TEST
/, IS EXPECTED SOON
Efficacy of Proposals Likely
to Be Indicated Before
Present Month Ends.
BY WILLIS HI. BOOTH.
President OF the International Cham
her of COmmerce.D

we cannot escape their impress, the
major problems of this area demand
our understanding.
American genius and influence have
been at work to secure just solution
of these problems, namely, the Vexa-
tious reparations controversy The
councils of the Interna tional Cham
ber of Commerce for some time past
American businessmen haye thrown
their weight in certain manner TO-
ward a settlement of the problem. IN
every quarter, acting with represents
ative business men of other countries
they have pressed steadily TOWARD
this objective.
In the inquiry of the Dawes COM
mission. which was in itself an
American suggestion. and at the re-
cent London conference Americans
played important roles, and some or
our countrymen are now prominently
engaged in perfecting the practical
operations of the Dawes plan.
Purpose of Plan.
Every one recognizes that this plan
now fully accepted, is directed AT the
disorder that since the war has pre-
vented the restoration of normal Nv
ing conditions to millions of people.
This is all a step in the olrect!o,'
of the reha abilitation of Europe. when
of the people of the world, IN our
own not least.
Now that the plan has been adopt
ed and the details of its imitation
have been formulated. even 10
schedules of dates. rapid progress
is being made.
German Action.
The last month has seen the pro
mulgation by Germany of the laws
necessary for the constitution or the
new bank of issue. for the priNdle
company which is to take over the
government owned German railways
and for the issuance in the amount
of nearly four billion dollars of rail
p.av bonds and industrial debentures
which are to be turned over TO
trustees named by the reparatlons
kommission and upon which pay
meuts of principal and interest are
to be made according to definite
schedule. In fact. some of these
bonds have already been turned over
and Germany has made prompt de-
posit Of the first payments of repara-
tions sums.
Already there has been some mill
tary evacuation Of occupied territory
and other important steps have been
taken to fulfill the program of restor-
alton of GermAny's fiscal and eco
nomic unity. as provided in the
Dawes plan. The customs line be-
tween the occupied and unoccupied
areas of Germany has been abolished
and German authorities gradually
are being re-establ:shed with the
full powers they exercised in the
economic and fiscal administration n
o. the occupied territory prior to
the Ruhr movement.
steps are being taken to restore 70
their owners the mines. coke ovens
and other industrial undertakings
which have been exploited under al
lied management or Professionally
movement Of persons. goods and
vehicles are b-ics modified or re-
moved
Developments Expected.
TIE present month is expected TO
produce important Developments. Il
IS believed that shortly the repara-
tions commission Will BE- in q position
to announce that Germany has pro-
vided for the installation OF all ex-
ecutive bodies under the Dawes plan;
that the reorganiZed bank of issue
and the new German railway com
pany are in definite working condi-
tion; that the full deposits of the
railway and industrial bonds have
been made. and that contracts have
been concluded for the fiotation of
the $500, 100000 loan which is TO be
offered as s:on as conditions speci-
fed in the Dawes report have been
fulfilled
1t would seem that the loan itself
of which the American market is ex-
pected to absorb about one-half may
be offered before the month is over
Thus by the end of October a fair
test of the efficacy of the proposals
or the Dawes plan will begin.
1t is expected that the Dawes plan
Will open the way for new conditions
in Europe; that production and the
life of the people in Germany may be
carried on in an orderly fashion, com
paratively free from the panicky un-
certainues of the last years; that ex-
change will be stabilized; that in
duStry and trade will be based on
stable and sound economic and fiscal
conditions, and that German labor
will receive payment in real wages
that Will more nearly represent ade-
quacy in supplying the necessaries Of
life.
If this is achieved it will be a re-
lief not only to Germany, but to the
rest of the world, for Germanys COM
pet1torS, as well as Germanys sup
pliers, have suffered from the arti-
hclal and rapidly fluctua ting condi-
uons in that country.
German Exports.
Payment of reparations by Ger
many contemplates considerable ex-
port of German goods. American
business men, like the business men
of other countries, are naturally in
terested in what this portends for
them. Does it mean ruinous compe-
tition in the home and foreign mar
kets?
j should say the answer to that
question is no" We encountered
German competition before the war,
and in general it did not worry US
much In the last few years, when
German production costs were artifi-
cially low, We encountered some of
the most distressing forms of that
competition, with great suffering.
We have not stood still in this
country in either our equipment or
our processes these past 10 years
am confident the compet titive
strength of our industries is greater
today than it was before the war.
There are undoubtedly lines in
which Germany has certain advan-
tageS over us, just as there are lines in
which England, France, Italy, Bel
gum. Japan, etc, have certain ad-
vantages over us. l have faith in
our ability to hold our own. / doubt
If many American manufa cturers
who successfully met German COM
petition before the war are in fear
of being pushed aside by prospective
competition.
Copyright. 1924.)