The Guardian And Evening Star, with which is incorporated the West Coast Times FRIDAY AUGUST 14, 1925. INTERNATIONAL GOODWILL.

Hokitika Guardian, 14 August 1925, Page 2

The Guardian And Evening Star, with which is incorporated the West Coast Times FRIDAY AUGUST 14, 1925. INTERNATIONAL GOODWILL.

An Fnglish newspaper describes tin experiences of Germany in respect t< the Dawes plan for th<‘ settlement ol debts, as an international experiment of goodwill. .Many interesting points, it says, are discussed by the AgentGeneral for Reparations Payments, Mi S- Darker Gilliert, in his report on the operation of the Dawes plan during tilt past eight months. Of outstanding importance is the fact that early operation has fulfilled expectations. Rot! the Allies und Germany nave co-opera-ted loyally in facilitating the operation of the plan, and have fully met the obligations thus far placed upon them under the l.ondon Agreement. It is not a simple, matter to recover from such a period of disorganisation as Germany was experiencing little more than a year ago—observes Mr Gilbert and there are many situations still to Ice liquidated and many unnatural conditions still to he remedied before real stability can be said to have been achieved. The Danes plan lias realised its two essential preliminary objects. The German Budget for the financial year 1924-3 has shown a safe balance. In fact, it has yielded a surplus of receipts over expenditure which has enabled the German Government to liquidate many outstanding liabilities ami should provide a helpful cash reserve for the future. Germany has also succeeded in providing and maintaining a stable currency. Measured In terms of its exchange value in foreign markets. the reichsmark has remained firm as the equivalent- of gold. Measured in terms of internal purchasing-power, it has varied in recent months only within limits practically identical witn those of other stable currencies. From the point of view of Reparations these developments are of paramount importance. The results achieved i these directions do not by themselves mark final readjustment. They are rather the starting points from which readjustment must proceed. The current developments, now us later, must he estimated in terms of this process. In industry, for example Germany is a ell equipped and lias resources for production on a large scale. But there s stjli a serious shortage of working •apifal, and it- will take time to build ip foreign markets. German industry, noreover, must now produce and sell inde-r stable conditions, and she is hiding that this presents rather differ■nt problems from doing business under ■onditions of inflation. In the field if credit and banking there remains -he task of gradually restoring the und of savings which is needed to fmneo domestic business and industry, 'he main reliance in the long run must .- on the growth of domestic capital, nil there are already encouraging igns of the return of habits of saving. Tom the point of view of the hanks here is the problem of broadening the ase of credit which was so narrowed I

by inflation, :nul determining how to adjust the present supply to the more essential demands. It will take real leadership and general willingness to face the facts as they are to work out these various problems. The experts’ plan proposed in effect an international experiment in goodwill. It aimed to remove from the field of controversy a subject v.hah, after all. is largely economic in character, and to give a fair trial to methods of patient inquiry and quiet administration. In carrying it out the Allied Governments. the German Government, and all the agencies concerned in its execution have worked together loyally and in as] irit ot friendly accommodation which was the basis of the plan. Its further progress will mainly depend upon the continuance of that mutual faith and confidence which have made possible a satisfactory beginning. A report drawn up liv the Ameri.au c iinnier. ial attache in Berlin states that Germany is developing its markets in China. Japan. British Indies, and Latin America; hut with the exception ot the t nitetl States these markets are small relative to German total trade. Sales in Europe. Germany's largest market, are slightly less important than formerly. I his is accounted for by the decreased shit meats to Russia and the Balkans, which are no longer able to purchase German products in normal quantities, and by the lessened exports to France, ami Belgium where German goods have been heavily handicapped by tarift restrictions and political (actors. A number of the neighbouring countries, however, are taking an increased proportion. in particular the Scandinavian countries. In general. Germany’s trade is still disadvantaged by several factors. These include the creation o: new competitive industries in pre-wai markets, discriminatory t a rill' barriers slill existing in a number ol its most important export fields, and lack ol operation capital necessary lor the normal liiiancing of foreign trade. Their results are shown in the fart that Germany’s foreign trade is only of) per cent of pre-war figures, whereas total world trade is more than 80 per cent., if estimated on the 1(118 price basis. According to reports of the I’russian Chambers of Commerce, tiie eeonomi position of Germany during .May was steady. Production remained at the level of the previous month, and employment further improved, but tie sales crisis in the Ruhr milling industry had l ot yet been surmounted. The situation on the freight market. in inland navigation, in the shipbuilding industry, and in ihe wagon inanuiacturing industry, still give rise to -01110 anxiety. On the other band, an increase in liveliness has ,-et. in on the tiuililing materials market, while the improvement in the potash, automobile. and electro-technical industry has emit 1 lined. 'l'tiis ../>■**] i-i I /‘{l M )'< 11.i< .1- /if fltis leonn.