Evening star., 1926-12-06
GERMANY MEETS
DAWES PAYMENT
Turns Over Second Install
ment PunctuaIIy-U. S.
Gets 33,949, 900 Marks.
By the Associated Press.

By the Associated Press.
BERLIN, December 6.--From her
own resources Germany has punctual-
ly met her second annual payment
In conformity with the Dawes repara-
ton plan. Seymour Parker Gilbert,
jr.. agent general for reparation pay
ments, in his annual report says the
execution of the Dawes plan proceed
ed normally during the second annu-
ity year and that payments totaling
in exact terms 1,166,9O4,574 gold
marks were received from Germany
during the period from September /,
1925, to August 81, 1926.
Distribution to the creditor powers
was carried out regularly and without
difficulty. The share Of the United
States amounted to 33,949,000 gold
marks This included an accumulated
balance carried over from the first
year, amounting to 15,308.000 gold
marks.
Passed Through Crisis.
The report says that during the
second annuity year Germany calmly
passed through a trying period Of re.
adjustment which. beginning in the
first annuity year, reached proper
tions of serious business crisis by
the Winter of 1925-26. .
The German budget, the report
shows, continues sound as to balance,
though it is asserted the necessity
for internal borrowings is considered
possible. This is the first reliable
statement forthcoming regarding the
German budget. The new tax pro-
gram is proving encouragingly pro-
ductive, but it is suggested that In
view of the experience of the past
year there is need Of greater modera-
ton in expenditures.
The report says the budget figures
shows a mounting scale for unem-
ployment relief, calling for 100000.
900 reichmarks in the estimates for
1926-27. It Is observed that as long
as unemployment continues near the
present level 1t will be a significant
budget problem.
Lump Payment Arranged.
One of the most important events
has been an arrangement for the set
tlement of two supplementary budget
contributions by means of a lump
sum payment of 300.000,000 gold
marks during the third annuity year.
Payments received from Germany
during the period from September l.,
1925, to August 81. 1926, included the
interest on German railway bonds.
amounting approximately to 550.00O.-
600 gold marks; budgetary contribu-
tions, 25O.o00,000; interest on indus
trial debentures. 125.00O,000. and
transport tax, 241 100000, totaling in
exact terms 1.166 ,904,574 gold marks.
The report shows that during the
first two years thu experts plan for
the transfer of reparation payments
made possible the complete transfer
of funds available for distributing,
aggregating approximately 1.269.-
O0O, 900 gold marks, of which 1.176,-
900, 900 was transferred.
BY the plan for the transfer of
reparation deliveries in kind and rep
arations under the recovery act the
payments were regulated so as to
eliminate difficulties with foreign ex-
change. The plan provides that the
transfer committee controls cash
transfer to the creditor governments
by the purchase Of foreign exchanges.
Curb on Loans Sought.
Concerning foreign loans, most OF
which were obtained in the United
States. the report says:
"In slightly more than two years. >
1t says, German capital issues placed
abroad amounted to 3.500,000, ,00O
reichsmarks, nominal amount.
"As the volume of borrowings
mounted the Reichsbank and the gov.
ernment made efforts to curb the de
sire of states and municipalities to
procure foreign credit and to discur
age foreign borrowing by industry.
THUS far it cannot be said that
the efforts have met with success
Technical evasions and the interplay
of local interests have tended to
impair the effectiveness Of this con
troll, which is further limited by the
prerogatives Of the states
The report adds that new instruc
tions make the control stricter, speci
fving that the proceeds must be used
for profit earning investments.