Evening star. [volume] (Washington, D.C.) 1854-1972, 1926-06-21
GERMANY MEETING
DAWES PAYMENTS.
Second Annuity Report Re-
veaIs 821,425,O66 Gold
Marks Paid to Allies.
BY the Associated Press.

BY the Associated Press.
BERLIN, June 21.--Germany paid
the creditor powers during the first
nine months Of the second year Of
the Dawes reparaticns plan an aggre.
gate of S2l .425.066 gold marks on
account of the second annuity OF
l.220. 900, 900 marks. and has made the
payments promptly when due. This
announcements is contained in the re-
port of Seymour Parker Gilbert, jr.,
agent general for repara tons, to the
reparation commission.
That German economy continues
to show steady progress in the direc-
ton Of healthy consolidation is re.
Elected in the observations Of Mr.. Gil.
bert. who declares that the experts
plan is functioning actively and
normally and that the allied govern
ments and the German government
and all the agencies concerned in it's
execution have continued To work to.
ðer Loyalty and in spirit OF
friendly cooperation.
Further Progress Likely.
With the stability OF German cur
rency fully assured and the German
governments hudgetary program
providing for significant tax reforms.
the further strengthening OF her
finances may be safely expected. This
Is the conclusion reached by Mr..
Gilbert. who points out in his analysis
"f German economic conditions that,
despite the severe crisis through
which she passed last Winter, Ger
many has kept Financially sound"
and that "a tendency toward recovery
is now beginning TO appear"
referring to the operation Of the
transfer principle, which has been
the target of criticism by the oppo-
nents of the experts plan, the Gil
bert report says: "Of the total amount
paid on account of the second an
nuity during the nine months ac-
counted for. IS per cent was trans
ferred In the form Of deliveries in
kind, or in various forms of pay
ment by marks within Germany,
While about 32 per cent was trans
ferred In foreign currencies.
These figures illustrate the vol
umes OF the transfers currently be-
ing made under the normal opera
ton of the plan. and show the error
OF attaching undue importance 10
cash transfers. as distinguished from
other forms OF transfers"
Discusses Bond Issue.
Discussing the prospects of plac-
ing the reparations bonds of the
German Railway Co. on investment
markets, the report says: 1T is the
unanimous opinion of all concerned
that the time has not Vet come TO
attempt any sale OF these bonds:
that ii is Still too early to make def
mite plans or begin negotiations look
ing to that end. The prospects Of
their sale Will depend upon the credit
OF the German Railway Co, It's record
of operations and earnings and the
general record which Is established
with respect To the stability OF Ger
many and the progress OF the ex-
perts' plans"
That the record already made by
the Germa n Railway Co.. as indica ted
by its first annual balance sheet, Is
encouraging and will ultimately lead
to increasing appreciation of the mer-
It's Of these bonds as an international
investment is emphasized in the re.
port, which, nevert heless, admits that
much depends on the progress and
stability of European countries gen
orally.
Discussing the readjustment Of
German economy, Mr.. Gilbert says:
The business crisis as reflected in
unemployment. commercial failures.
curtailed production of'iron and steel
and in the reduced volume of railway
traffic reached it's aapex In January
and February. Since then there has
been gradual improvement in all
these factors. though some move
ments have been slower than others.
1T is impossible to forecast how
far this gain can be held. but in the
general process OF readjustment 1t
appears to have followed sound prin-
ciples."
Payments to the various credit or
powers during the nine months end
ing May 81 included the following:
France, 461 100000 marks; Great
Britain, 166, 300, 900; Italy, 65,100,000;
Belgium, 500 900.
Including its accrued share in the
first annuity, the United States has a
credit OF slightly more than $4,000, 900
marks with the agent general.