New Britain herald., 1924-04-09
DAWES SAYS REPORT
 IS NOT PENALIz|NG
Tells Washington It Is Method to Aid European Rehabilitation

Charles c. Dawes, the unofficial
 American representative on fhe first
 committee which examined into the
 economic and financial situation i'll
 Germany. in a covering letter to the
 report of his committee tells the rep
 aration commission that the commit
 tees recommendations must be con
 sidered not as inflicting penalties. but
 as suggestive means for assisting the
 economic recovery of all European
 people and ihe entry upon a new pe-
 riod Of happiness and prosperity un-
 mcnaced by war"
 The covering letter of General
 Dawes, follows:
 ITO the president of the reparation
 commissions
 Sir.
 Your committee has unanimously adopted a report upon the means for balancing the German budget and The measures to be taken to stabilize it's currency which I now have the honor to submit.
 Deeply impressed by sense of its responsibility to your commission and to the universal conscience, the com mittee bases its plan upon those prin- ciples of justice. fairness and mutual interest in the supremacy of which not only the creditors of Germany and Germany itself but the world also have vital and enduring concern.
 With these principles fixed and accepted in that common good faith which is the foundation of all busi- ness and the best safeguard for uni versai peace, the committees recom- mendations must be considered not as infiicting penalties but as suggest ing means for assisting the economic recovery of all European peoples and the entry upon a new period of hap piness and prosperity unmenaced by var.
 Pay To The Limit
 Since, as result of the war, the creditors of Germany are paying taxes to the limit of their capacity, 10 also must Germany be encouraged to pay taxes from year to year to the limit of her capacity. This is in &C., cord with the just and underlying principle of the treaty of Versailles, reaffirmed by Germany in its note Of May 2s, 1919, that the German | scheme of taxation must be fully as | heavy approximately as that of any | of the powers represented on the l commission More than this limit | could not be expected and less than l this would relieve Germany from the common hardship and give to her an i n ad in Ua tya tn Npd trsr competition of the future. The plan of the committee cmbodies this prin- eiple.
 ''The plan has been made to include flexible adjustments which from the very beginning tend to produce maximum of contributions consistent with the continued and increasing productivity of Germany: tie con servative estimates of payments to be made in the near future are dictated by business prudence in outlining the basis of q loan and should not destroy the perspective as 10 the effects to be registered in the aggregate eventual payments which will annually in- crease.
 With normal economic conditions and with productivity restored in Germany. the most hopeful estimates Of the amounts receivable are iusti- hcd. Without such restoration, such payments as may be obtained will be of little value in meeting urgent needs Of creditor nations.
 Ensures Permancnce :
 ITO ensure the permanence of the sew economic peace between the ai- led governments and Germany, which involves the economic adjustments presented by the plan, there are pro- -ided the counterparts of those usual economic precautions against de- norslization which are recognized as 'ssentisi in all business relations in- 'olving express obligations. The existence Of safeguards in no ray hampers or nmbarrasses the case fl ordinary business contracts The thorough effectiveness of thcse safc- nsrds should not embarrass the nor ' nal economic functioning of Ger nsriy and is of fundamental import nee to Germany and her creditors. Great care has been taken in fixing !, he conditions of the supervision over internal organization so as , Impose a minimum Of interference ( consistent with proper protection. The Ian submitted is fair and reasonable . , its nature and, If accepted, is likely . , lead to ultimate and lasting peace. he rejection Of these proposals by is German government means the eliberate choice of continuance of demoralizstion, eventually D her people in hopeless Iisery.
 Covers Broad Field Tn the preparation Of this report is committee has carefully covered broad field of investigation. IL haa 3 sd the constant cooperation of able afs Of experts in gathering informa- on. Digesting it and presenting if. he committee has conducted on the