The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1924-06-05
DAWES Report
!: !: PRAISED BY
.a
BANKER
Washington Bank Men Hear
Address by George {.
Roberts
Rx HARRY GusACK.


WHITE SULPHUR SPRINGS,
w. Va, June 5.-The findings IF
the Dawes reparations plan and the
principles laid down in it, IL &C
cepted by the nations affected, will
result in a complete and effective
settlement all around and set the
world in running order again.
George e. Roberts, vice president
Of the National City Bank of New
York; told Washington bankers
meeting in convention here.
In concise, but illuminating adj
dress on the Dawes plan, Mr.. Rob
erts urged the United States and
other nations to buy German prod.
ucts in the quantity required to COW
or the reparations payments.
Corporations Urged.
THE problem of PREPARATIONS In
CludeS not only the question as to
the ability of the German industries
to produce goods in the quantity
required to cover the payments, and
Of the willingness Of the German
people to apply them to this pur-
poses but also the question as to
to receive these goods and allow
them to be sold in their markets in
competition with their home indus
tries" Mr.. Roberts said.
Mr.. Roberts pointed out that the
reparation5 problem has stood
through several years Of contro-
versy, with apparently only faint
recognition Of these difficulties, at
least IN official quarters, until the
dawes committee made it's report.
THE report deals frankly with
them all-therein lies its, great
Merit" he declared. Continuing,
ME-. Roberts said, in part:
:s"Under the terms of the Lon
don agreement. nominally in force
TO- this time, the total PREPARATION
payments were fixed at 100000, ;.
000 gold marks, or -approximat ely
$4,000. O00, 900, upon which interest
was to run at per cent per an.
mum. with per cent for amorti3a.
ton, SIX per cent in all. or close
70 Ss0e0,0OQ,000 in gold marks per
annutn, and this did not include
cost of occupying military forces.
The Dawes Committee has cut this
annual payment from about 5000.
100000 gold marks to what it calls
q standard payment of 1900 900, :.
600 gold marks, or to put it in
dollars from about $4,000, 0O0, 0OO
to 00,00O. 900 annually, or less
than one-third Of the former sum
plus provision for increases based
upon a prosperity index, IL they
should be found to be feasible.
Another Change.
There is another change OF great
Importance; under the London
agreement Germany had to make
the payments abroad; that is, the
responsibility Of making the con,
version from German currency
into foreign money rested upon
Germany, and the exchange cost
whatever 1t might be, fell upon
Germany. And, since Germany has
had no favorable trade balance
since the war, her purchase OF
foreign exchange with which to
make reparation payments un
doubleday were factor in the
depreciation Of the mark.
Tho problem Of conversion, OF
actually getting the payments out
OF Germany, has been regarded by
economists as the one about which
the most obscurity existed, and the
Dawes Commission has so regarded
1t. The committee has dealt with
this problem OF conversion In a
simple and yet effective manner by
requiring the creditor countries to
receive the payments within Ger
many and In the German money
The obligation of the German gov.
eminent is discharged when the
funds are deposited in the new cen.
trail bank at Berlin, to the credit
Of the transfer committee provided
BY the plan to represent the credi.
tor countries.
This really is the master stroke
OF the Dawes report. The problem
Of conversion Is put up to the credi.
tors, and this is right, because the
task Of getting the payments out OF
the country probably will be the
limiting factor in the payments, and
1t Is important to have the CO
operation of the creditor countries
Under the arrangement there can
not, as I see 1t, be any dispute witt
the Germans about it. They have
nothing to do with it. The trans
Ter committee is charged with
supervision over payments in kind
as we'll as payments by means OF
exchange, and must conduct these
operations in such manner as not
to unduly disturb the value of the
currency. The provisions are ex
plicit upon this point, as of course
they should be. because the main
tenance Of stable currency /,
essential to the success Of thu
whole plan.
There is great flexibility in thi.
part of the plan, rejecting the un
certainty in the minds Of the com
nittee as to the practicability O,
the proposal to transfer the grea
sums named out Of the country. o.
course, the credits in the Berlir
bank can be transferred outsid,
only as the exports of German