AIMS OF THE PLAN.

Hokitika Guardian, 4 September 1924, Page 4

AIMS OF THE PLAN.

AfR DAAVES EXPLAINS.

Mr Charles (I. Dawes, the United States financier, chairman of the first Committee of Experts, began his famous report with the following letter :

"Deeply impressed hv a sense of its responsibility to the universal conscience, the Committee bases its plan upon those principles of justice, fairness, and mutual interest, in the supremacy of which not only the creditors of Germany and Germany herself, hut also the world, has a vital and eiiduriiij. concern. Witb those principles fixed and accepted in that common good faith which is the foundation of all business, and the best safeguard for universal peace, the rcrccommendatioils of the committee must lie considered not as inflicting penalties, hut ns suggesting means for assisting the economic recovery ol all the European peoples and the entry upon a new period of happiness and prosperity unmeiiaced by war. “.Since, as a result of the war, the creditors of Germany are paving taxes to the limit of their capacity, so also must Germany pay taxes from year to year to the limit of law capacity. 'lbis is in accord with (Imt itlst and underlying principle of the Treaty ol A rrsaillcs, reaffirmed by Gcrmanv in her Note of May 2!ith. Ifillb that the German scheme of taxation must he l ully as heavy proportionately as that ol uni of the Rowers represented on the Commission.

“More than Ibis limit could not he expected, ami less than this would relieve Germany from the common hard ship and give her mi unfair advantage in the industrial eom.iietilion of the future. This principle (lie plan cml)odit*s. I ••The pljiii has I icon madi* flexible adjustments which, from the j very beginning, tend to produce the maximum of contributions consistent, with the continued and increasing productivity of Germany. AV'tli normal, economic conditions and p rod lift i\ it\ , restored in Germany, most hopeful ( estimates of amounts eventually re-j eeivahle will he found to he justified. . AVitlmut such restoration, such pay- 1 incuts as can he obtained will he of | little value in meeting the urgent needs of creditor nations. ••To ensure the permanence of a new economic pence between the Allied Governments and Germany, which involves the economic readjustments prevented by the plan, there are provided Hie counterparts ol those usual economic precautions against delimit reeoguivcil as css! 11 tin I in all business relations involving expressed obligations The existence of safeguards in no way hampers or embarrasses the carrying out of ordinary business contracts. "Great care has been taken in fixing conditions of supervision over Germany's internal organisation so as in impose the minimum of intoilorenee consistent with proper protection.. 1 hi** general plan, fair and reasonable in its nature, if accepted, leads to an ultimate and lasting peace, ’lhe rejection of these proposals by the German Government means the deli lie rate choice of a continuance of economic demoralisation, eventually involving her people in hopeless misery.