Evening star., 1927-05-08

u during the past few days
brought clearly to light that
i revision of the Dawes plan
viii soon become the foremost
issue i'm international politics. Two
outstanding American financial and
economic authorities identified them
selves with this view. Both voiced it
before sessions of the United States
Chamber of Commerce. One of them
was Thomas w. Lamont, who is in
practical charge of the foreign rela-
tions" of J. p. Morgan & Co. the prin-
Cipal American international banking
firm. The other was J. f. Sterrett of
Price. Materhouse & Co. of New York
leading public accountants. who was
recently the American member of the
transfer committee under the Dawes
plan. MeSSrS. Lamont and Sterrett
discussing the German reparations
system, stressed with significant em-
phasis the fact that the Dawes plan
has never been regarded "a final solu-
tion of the reparations problem" In
that solution German leaders expect
the United States to play leading
role. linking with it the war loans
Europe owes us.
Statement by Lamont
'Many economists have of late"
said Mr.. Lamont, been raising the
question as to whether. when Ger
many's maximum payments of $780,
o00 900 gold marks under the Dawes
plan begin to fall due in 1929, she will
he able to make the necessary trans
fers to meet them and if not, what will
be the solution of the situation that
will arise. 1t has long been manifest
that the Dawes plan furnished
bridge for the Allies and the Central
Powers to cross over the great gulf
that had been fixed by the continued
and ever lnCrea sing disSension over
the problem of reparations-a dis
agreement that with the invasion of
the Ruhr almost threatened Europe
with fresh war. 1t has been point
ed out many times that the great fea-
ture of the Dawes plan was that il
furnished n mOdus Viyendi. 1t put the
question of reparations outside of poll.
tics and gave the European nations
time to settle down and pursue fresh
methods of reconstruction and an
peasement.
Await Report.
Until, however. Germany's ultimate
liability has been determined, the
economists maintain that the repara-
tons problem will not have been
nnally solved. AS the time approaches
when heavier payments become due
from Germany to the Allies, the ques-
ton may come up in some form. In
the long run the American investor
will be satisfied to continue his loan.
lngs on a heavy scale to Europe only
when he can feel that the whole
question of interallied and intergov.
ernmental loans, including the repara-
tions due from Germany, has been
settled equably and finally"
Sterrett's Inside View"
Mr. Sterrett, speaking from his in.
SIDE knowledge of the practical work
lngS of the Dawes plan, made these
highly suggestive observations:
Some authorities are convinced the
Dawes plan must break down. Others
are no less certain that Germany can
continue TO pay and that the full
a1nuitieS can be successfully trans
feTred. Both groups cannot be right
Perhaps some misa pprehensions enter
into the calculations of each of them
II the Dawes plan was a final. rigid
thing like mortgage, there might
be more occasion for concern. The
plan, however, is not an infiexible
piece of mechanism fastened on the
back of the German government
1t must he remembered that the an
nuities fixed by the experts committee
had to be determined at a time when
financial and economic conditions in
Europe, and particularly in Germany,
were much befogged
The committee had to make its
forecasts under these difficult con-
ditions and to make these forecasts
for a period of several years. With
out yielding in our admiration of
what they accomplished, it would not
be surprising if it should be found
eXperimentally, that some degree of
error crept into their forecasts. They
recognized that possibility themselves
and, like wise men, they took care
TO guard against unhappy results in
such an event. Moreover, and this
point seems to be overlooked by many,
the plan itself is not a final settle
ment.
Report of Experts Quoted.
In its report, the experts commit
tee stated:
I'VE would point out finally that
while our plan does not, as it could
not properly. attempt a solution Of the
whole reparation problem, it fore
shadows settlement extending in its
application for a sufficient time to re-
store confidence, and at the same time