Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-07-31
DAWES PLAN HELD
BURDEN ON BERLIN
ReinhoId Doubts Germans
Ability to Meet Pay
ments to America.
By the Associated Press.

By the Associated Press.
WILLIAAISTOWN, Mass. July 80.
Doubt of Germany's ability to meet
the annuities due America under the
Dawes plan were expressed tonight
by DR.. Peter Reinhold. minister of
finance in former Chancellor Luther's
cabinet. in al interview with the AS.
ISOLATED Press at the Institute of Pol
tiles.
ut is a very great burden. and 1t is
impossible to know whether the Ger
man economic system will be able to
bear the taxation necessary" DIR.
Reinhold said. but in the opinion of
experts the outcome is doubtful"
The plan is functioning perfectly
in every way and | see no difficulty
at present. / personally would not
undertake to say whether the German
economic system will be able to bear
ii to its full extent in the future.
Payments Are Heavy.
81 am convinced that every German
government will do all in its power
Loyalty TO fulfill the obligations in
cumhent on it,
Germany" he continued, must
pay America a sum equal to 80 per
cent more than the total figure pay
able by all the other debtor countries
combined. Whereas the amount pay.
able by the associated powers to the
United States is. according to recent
reliable computations, about IL hun
dred million marks, Germany is re-
Quired to pay almost IS hundred mil
lion marks or S450, 900, 900.
Must Come From Surplus.
"The problem is whether the Ger
gan economic system can produce an
annual net surplus allowing payment
of the annuity produced under the
Dawes plan. It must. obviously be
paid out of surplus actually earned
by the nation. 1t cannot be paid
from the Nations capital.
THE problem Is not what Germany
can produce, but what she can earn"
Earnings, he said, must come from
German industry, which, laboring
under the tremendous burden of taxa.
ton made necessary by the national
debt, might be unable to operate at a
profit. 1t was his opinion and, he
added, the opinion of experts. that
upon this proposition the ultimate de.
velopment will depend
The effect of the Dawes plan. he
said, however. had been to strengthen
rather than imperil German-American
many, 1t Is still the basis of improv-
ing conditions, economic and financial,
and since it was originated by Ameri-
can minds and was largely financed by
Americans, it has tended to assauge
rather than intensity the war-rupture.
Confident of Appreciation.
IL am confident" he said, that the
conscientiousness and loyalty with
which Germany is fulfilling the Dawes
plan will be acknowledged and ap.
preciated in America"
In regard to the possibility of an
Austro German alliance. DR.. ReinholG
would only say that he thought under
the proper conditions, it might be
effected peaceably.
Referring to the treaties of st. Ger
main and Versailles, which definitely
precluded such a rapproachement. DR..
Reinhold denied that the question
could be settled for all time by such
q dictoral provision.
$50 far as Germany is concerned"
he said. II have confidence that with
the trend in Europe toward realization
of justice in self determination, the
union between the two countries could
be effected with the unanimous con.
sent of the other powers. when the day
comes"