Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-04-10

parties to carry out this plan in that
good faith which is the fundamental
of all business.
F3-Our plan Is based upon this
principle-the reconstruction of
Germany is not an end in itself: It
is only part of the larger problem
of the reconstruction OF Europe.
(G)-Guarantees proposed are
economic; not political.
- GERMAN-ECONO UNITY
For success in stablizing currency
and balancing budgets Germany
needs the resources of German ter
ritory as defined by the treaty of
Versailles and free economic acti-
witty therein.
e -MILITARY ASPECTS. CoNTIN-
UAL SANCTIONS AND GUARAN-
TEES
tA-Political guarantees and
penalties are outside our jurisdic-
ton.
(B)-The military aspect Of this
problem is beyond our terms Of re-
ference:
(C-within the unified territory
plan requires when it is in effective
operation: If military organiza-
ton exists it must not impede the
free exercise of economic activities:
There shall be no foreign control
or interference other than that pro-
posed by the plan. but adequate and
productive guarantees are provided.
"4-THE COMMITTEES TASK
(a)-Stablization of currency and
the balancing of budgets are inter-
dependent though they are pro-
visionally separate for examina-
ton.
(b)-Currency stability can only
be maintained If the budget is nor
mally balanced: the budget can only
be balanced if a stable and reliable
currency exists.
(c)-Both are needed to enable
Germany to meet her internal re-
quirements and treaty payments.
"J-ECONOMIC Future OF GER
MANY
a)-Productivitv is expected from
increasing popularity. technical skill.
material resources and eminence in
industrial science;
(b)-Plant capacity has been in
creased and improved since the war.
'G-CURRENCY AND A BANK OF
ISSUE
(a)-All classes will benefit from
a stabilized currency especially Ia
Dor:
(b)-Under present conditions
rentenmark stability is far from
temporary:
CA new bank is set up or the
Reichbank reorganiZed:
(d)-The main functions of the
bank will be: Ito issue notes on a
basis stable in relation to gold with
an exchange privilege: TO serve
as a bankers bank establishing the
official rate OF exchange discount;
3-To act as the government banker
but free of government control ad-
vances TO government to he strictly
limited: ito hold on deposit re-
paration payments: 5-The capital
of the bank will be four hundred
million gold marks; Ut will be
directed by German president and
managing board who can be assist
ed by a German consultative COM
mittee: THE due observance of its
statutes will be further safeguarded
by a general board of which half of
the members including 4 commits
sioner will be foreign.
''1-BUDGET AND TEMPORARY
PREPARATION RELIEF
balancing the German budget re-
ta) Full economic and fiscal SOW
ereignty subject TO the supervision
provided for in this report;
OBJ A stable currency;
(c) Temporary relief from charges
on the budget for treaty obligations
cd Such relief not to suspend es-
sential deliveries in kind.
S-THE BASIC PRINCIPLES OF
GEEMANY'S ANNUAL BURDEN
ta) Treaty obligations and contin-
rity of balanced budgets. bal
ancing the budget does not entail
merely provision for internal admin
istrative expenditure. 2-Germany
must also pay within the utmost limit
of her capacity for her external
treaty obligations. C-The budget
can be balanced without necessarily
dealing with the total capital debt
of Germany. At cannot be con-
tinuously balanced unless the annual
charge is fixed for considera bic
in advance.
90 Commensurate taxation.
1-Government interna' debt has
been practically extinguished by the
depreciation of the currency; New
debt charge ought to be met COM
mensurate with the burden of the
French. English, Italian ard Belgian
taxpayers; 3-The treaty recognizes
this principle; At is normally
sound; Sit is economically JUST
in it's influence on costs Of produce
ton: 6-This principle has been ap-
piled to the full lint of practicable
ity.
(c) Allies share in Germany's
prosperity.
1-Germanys creditors must share
in the improvement in Germanys
prosperity. 2-This will be secured
by an index of prosperity.
Cd There is an important differ
ence between. the Germans capacity
TO pay taxes and Germany's capacity
to transfer wealth abroad.
ABNORMAL RESOURCES FROM
WHICH PAYMENTS ARE MADE
Germany will pay treaty charges
from three sources ta) Taxes: 90
Railways: Co Industrial debentures.
ta)-F'rom her ordinary budget;
19c4-25 budget may lie balanced if it
is free from peace treaty charges;
2-1925-26 budget receiving 100000,
900 gold marks from special sources
may pay that sum for repara tons;
3-1326-27 one hundred and ten mil
lion gold marks; 4-1927-2S Ave hun
Smeke-Stained