THE DAWES PLAN.

Hokitika Guardian, 21 August 1924, Page 1

THE DAWES PLAN.

I’ROl’f ISAI.S ACCEPTED MV LONDON CONFERENCE. A DEFINITE BASIS OF SETTLEMFNT. The proposals adopted hy the Inter AHietl Conference in London on Saturday niyht for the collection of reparation claims from (let-many were pit forward in a report prepared by t committee appointed by the Reparations Commission. The chairman o the committee was Genera! Charles G Dawes, a Chicago hanker, with whon were associated Knylish. Fi'i'iiefi, Ameri can and Italian economic experts. The committee was appointed to investivate t!:e economic eoiiditiou ol Germany and re'-ommeiid measures fi hahtuee her Budyet and stabilise hoi currencv. I’MINCTI’AI • FINDINGS. The principal finds of the committee are as follow.-: No complete moratorium. Graduated payments for four years, after which a minimum total annual sum of L'l'i'i.OlVUlefl will he payable hy Germany. An immediate ext uual lean ol c Tuvin.n:m. Cieatinn of a new liank of Is-ar. nr tdteriiativel.v a reorvanisatioii of tit" Meiehshaiik. C'reali'iu of a General Hoard of Foreivn Control, to sit alonv-ide the German .Alaiiiiviii;: Moard.

No other foreign eontrel of Germany. Measures of ceneral control onlv t-i he reimposed in ease of llavitmt failure to meet liabilities. Payment to be made bv Germany from railway bonds, industrial debentures and s|v.'i-ial!.v assiened taxes, as well its from normal Mudvot revenues the German railways bcinv converted for this purnose into it joint stock cum. patty.

The schedule of payments to runonlv as from the date when Germany revaius full eennoitiie and fiscal sovoreivntv over her territory. I’ANK OF ISSUF.

Tin' new urn posed hank is to have a monopoly ot the rittht of note issue in Germany for liltv years. It is to have a eacit'd of MI'D.OTI.ITVI. of which C|.-, (V) ) fli’p j- t-i l;e siil serihed nartlv in Germany and partly abroad, the remaininv £o.t)!H),(!.'!!) heiiu: issued 111 pur-iha-e of the real protierty lieloni'imi tv the l!--iibsb:iiik. The hank will be administered ly a German president and a G"rman ni:imi'_dnv boaril, but there will he a loreivn hoard as well with larve powers.

The exnerts draw a sharp di-tinefion between Germany's tax-payiuv powers and her eaotn-itv t-o make external payments. and point out that the failure to recognise this distinction In the mt-l lias been a source of diliieulty. Stress is laid upon the necessary return ol confidence and the avoidance of calliny the whole scheme into dispute at a later date.

A schedule of payment is drawn up. Dm rim: 1 DTI-'i-T the sum of fifty milli"" pounds slerliuy (one milliard of void mark-) will become doe. e! which loorliflhs will be pmvided by a loreien loan, without whieb deliveries in kind could not be made (luriiiv the tieriod of pari ial moratorium. This sum of fifty million i•onnds eradmdly rises ilurinv Die next four years, and i- drown from ever-w ideniliv sourres. |>y 10’J. Q- --•_>!) it amounts to £l'2o.(!l!'U''! 0. derivable from Mudyet revenues. I lie railwav- transport tax and inilostrial deI, oil iires.

Uv that time the bud vet ar.v situation in Germanv e- um"d to have le-io:m' normal, and tlierealt"f tbe siib-e |iient standard ebarw will be C12o.l::i0.00 ). Tin's will, however, he supplemented bv an additional sum lomnute l up in tic index of prosperity. The experts comment, slroityly oil t.i.e hanhaxard and unknown totals under the various heads which Germany Jta- lieen hitherto exiceted to prnvid". •||,e\ therel'ore enter into the details of Ihe nroiivis uhirh they themselves stiy-v.-j The German railwavs are to he eonverled into ti joint stick company with all • > 111 i 11 : 1 1 capital "I 7.,0 million ~ u,ml-. The manayiny director will be a German, but lliere will he a loiviyu ('11:11111 i ~s ii-ii n-r.

It. i- reeommeiided that the repealed -uvyesi ian- of the German Government lamni-eiiled. and that the Meieli should provide ilehent lire- ot industrial concerns tti a value uf O'Jolt.t.iKl.tl'-'b Ihe revenue- from l-ln- laxaiioo it i-ertaio slieeitii'd .-nit 11 - viv... tobacen. alcohol, -iiyar. beer and Cii-toni' duties, shall be devoted to reparat-hin payment. ING WFAt.TH.

Tile experts euti-ider that deliveries in kind tire iiot really ilislinyuishable from ea.-li payment-. lliere must be a 1 -ill-plus of German produclioii ovef i-e.n-um pi me. A’l ran-ler ( oiiiuiiitee 1to be set up. which will be enlist ituteil of ail Ayent fur Meparat ioli I’.ayliients. reoresi'iitiiiy the Meparatimi Commis--ioii in Germany, and five loreiyn excbanyi- exp -rts. drawn I'imiii Great Hntain. the United St tew k ranee. Ilal> and M-duiniii. In the event of tic au--1111:11 liability ri'iiminieuded by the experls beiny proved by i sperieutc in exthe expert surplus wliieh Germanv is able 10 create, the annual burden will be automat ieally reduced to the amount of such surplus.

The loreiyn lean of £ 11 f M"At> is 1',,.- Die dnub!" purpose of providiny currency stat.’.lilv at the outset and liiuturiny deliveries in kind ditiiny nreliminary perioi! of lour year.-. G'onianv. ill the opini'Mi of tic expert!i;,s *e\c,-lli-iil -eeurily for -ui h a loan. More than ample maryin exists amony the sei urilies as.-iyiu'd to the Allies to provide both interest and sinkiny I'uc' 'I be experts do not hesitate to e nidi-nm any sy-lem whir-li will involve the yeuerul control <-f all Germany's revenue and expemlittire. The onus ol r.-p msibilit.v must be placed on tbe German Clovonnnoiii.