Evening star., 1926-08-23
English and French Finan-
ciers See Peril if Scheme
Is Continued.
GERMAN REGENERATION
ALARMS INDUSTRIALISTS
Pressure Of Exports Making Com
petition Especially Severe on
British Producers.
BY EDWARD PRICE BELL.

BY Cable to The Star and Chicago Daily News
LONDON. August 23.--Predictions
that the Dawes plan is doomed char
acterized financial discussions today,
both in England and France
Discriminating critics do not call
the plan a failure" They call it a
success. What they mean is that it
serves Europe and the world in a
great and urgent crisis, but that it
lacks the elements of permanence.
1t is agreed that the plan establish
ed the stability of the German cur.
rency and paved the way to European
reconstruction. 1t is agreed that Ger
many up to the present had made
regularly and punctually the pay
ments required of her. What econ
omists and financiers do believe is
that Germany will not continue to pay
under the plan in this manner and to
the end of the period it contemplates
Germany Not Criticized.
This opinion does not rest upon any
doubt of Germany's industrial vitality
or good faith. 1t is realized that the
German people are capable of hercu-
lean industrial efforts 1t is not ques-
toned that the German republic de-
slres supremely to vindicate it's good
name and its credit in the world.
But the conviction grows that the
Dawes plan constitutes an artificial
entity in the world of economics and
that its liquidation is only matter
OF Tune. British industrialists and
traders regard the plan with little less
than CONSERVATION. They see in it
their ultimate undoing. Their reason
ing is that Germany can meet her
Obligations only at the expense of ex-
porting nations, of which Great
Britain is one vitally dependent upon
exports.
British politicians are not vet voic-
ing their alarm over the Dawes plan.
Financial Great Britain also is silent.
though far from unconcerned. Lord
bradbury said to the writer, with em-
phasis:
Il do not think Great Britain ever
Will move for the alteration, let alone
the abrogatlon, of the Dawes plan"
Ultimate View Stated.
Nevertheless, Lord Bradbury appre.
ciates the industrial implications of
the plan in the long run, and the
writer does not think his judgment
would be misrepresented by the state
ment that he has little or no conf
dence that the plan will run it's stipu.
lated course.
Competent advices from Germany
unfold an extraordinary picture of in.
dustrial and financial reorganization.
Electrical mechanical power, eimina-
ton of waste, low wages and long
hours are building up Il competitive
manufacturing system uneXampled in
nI te,
pictured as taking the form of
highly interrelated economic unit. Ill
judged individualis,n sin business is
said to be disappearing. The manu-
facturers are pooling their knowledge
ard ideas. Science and research are
working at a high pitch.
1t is predicted that while the coun-
try's revival is prospective rather
than actual, present methods assure
a Wealth-producinS capacity far great
er than the sum of $500, 900 900 re-
quired annually for the Dawes scheme
In coal mining and iron and steel,
according to British experts, Ger
many's prewar average OF production
has been reached. DESPITE her loss
Of 100000 tons of coal a year, due
to territorial changes following the
war, she has improved her machinery
and methods of production SO greatly
that she not only can supply her own
needs in this fuel, but promises to be-
come a coal exporting country.
Cheaper Steel Foreseen.
Cheaper German coal is regarded
as foreshadowing cheaper German
iron and steel, and corresponding i'm
provement in Germany's whole in
dustrial position with reference to
world markets.
Remove the stimulus of the Dawes
plan to abnormal German industrial
affort and efficiency. allied with a lower
standard Of living for the German peo-
ple,' has become the slogan of the
British business community.
Frances position on this question is
expected to depend upon the inter-
allied war debts. If these must he
paid and America, in Chancellor of the
Exchequer Churchill's words. is to
have the whole of the German repara-
tions. France also would wish to see
the Dawes plan scrapped and the
European economic situation restored
to a normal basis.
Copyright. 1926. by Chicago Daily News CO..