Evening Star Newspaper, April 9, 1924, Page 4

Experts’ Rep—(;t As Submitted > On German sz ved from First referred to the finance section of the league for arbitration (ermany’s Iroads, the experts to be worih Zold marks, with a net « ity as high as 1.000.000,000 extimated by 000.000 old marks yearly, were found to be an available | means for securing re tion pay- ments and aiding German financ The experts propose a blanket mort- gage of 11,000,000,000 gold marks on the entire German railroad syste bearing 5 per cent interest. with per cent sinking fund annually Sliding Scale Provided, The interest and sinking fund on the mortguge, they fizure, represent than 3 per cent on the en apitalized value of 25.000,000,000. Full interest will not be requircd during the p reorganizat but the payments 230,000,000 marks will be in 14 and 1925, ipcreasing on a sliding sei to 60,000,000 in 1 id 1928, which the experts think ought to become nor- is ex nder the plan d fitst mor vate of ini This amount than the undertakings n industry pected to provid marks, Tepresented ds bearing the he railroad b St the ds lexs debt of the industrial Germany before the wi The interest on these paid a pro H d year the third 5 per Jus 1 per cent sinking fund the fourth vear, In the event of default in the pay- ment the intercst on the sinking fund or princips n cither railrogds or industrial bond: made for the recovery of tie deficiency from the German government throd the commiss: of controlled reven in bonds will le, begin Estimate of Proceeds. I for ire that gold the provisions in the experts estim produce tirst plan payments d they will marks the ond third year, and payment 20,000,000 the year, d 100,000 the n maximum from ter vear. 00 f /500,000.000 the to be required nually. the fifth reafter vear, 000,600 his iittee tind and three- marks abroad represents rks at cigners MeKenna and ve quarters billion gold 2nd that all purchases of n a million of f were mate on informatios These which he experts find +broad none of 1 foreigners own the amount rks. which axation and be tal of Germany's resources foreign amount marks, whils fermany property 000,000 gold ther approvima 200,000,000 ought mate T spec Would h Prevent Exodus. Germin broud ¥ As to be xperts minate w ttracted tiermany believe —that is, give basis of valu many's interest tions. The ure that pinion nited jerman m and promus st time for the special to Gern T to give ipital and for sub rmary to the ext mark:: gold bunk mieet exponditures du raquired budget, Th n of this hare the inintere dustrial many an i ani carry e experts help man with the ave it Must Use Faxation. can Germany's v the experts applicd ted de reje ments, they her teng clare, ought to be mude to mortgages able capacity. and s from up from tax principle of just out, as templated that the Ger taxed at led of the allied countries. limitation should be bilit The any detic in Fesou nade ol m e a sim- oint d the only of prac- vl‘.u Aperts between the Germany can tions account can be transferred to forelgn coun- tries. urrency and budget insta bility might result from overestimat- hir her capacity for making ments abroad arations, ever, they conter included in the hu prosperity as interpreted and applied the commissioner is to be relieg apon to arrive as a proper balanc Railroads Are Improved. nake amou Aise d th non the repara- mount that be index of The e had been perts found that spending without stint on eomplete installdtion of her railroad system, which has been brought to point of efliciency unknown before Germany d of total | the | and a_dead | Payment Plans transportation system ally are provided appliances, have been furnishing n the war. The and industries gene: | with the most modern and p and terminals extended and improved, excellent sources of revenue and adequate Dle along_ with monopo- o, for the payment of reparations With respect (o the military aspeet. of sanctions and guarantees, the Dawes report suys “If political guarantees ties intended (o insure the plan proposed are conside sirable they fall outside the com- mittee's jurisdiction. Questions of m ry occupation a1so are not with- ing our terms of refere 1t, how- ever, is our duty to point out elearly that our forecasts are based on the asumption that economie wetivity w be unhamper nd unaffected by any foreign organization other than the ntrols herein provided. Consequent- 1y our plar upon the assump- tion that existing measures. in so far is they hamper that activity, will be withdrawn or jeiently modificd <o soon as German has put into exceu tion the plan recommended.” Joint Stock Company. greement with the railway the committes recommends the of the railways into a jvint stock company, adding “1t t tention thus deprive Germany the administra- tion of her railwa favor of the allies. On the plan this not the under- nd penal- cution of ed de- n oxe- perts. conversion German not our to of contrary, our return modest ind o I yming we nterference W the demands only a ¢ the capital cost. return is forth anticipate any German management taking.” The railways “ rd of eight wi nine will b German ernment holders of prefere: ather nine will trustee of the [ ranaged | directors, of o by the and the private shares, and the e named by the bonds to he issued mounting to 11,000,000.000 zold arks, five of whom may be Ger- mans. The chairman of the hoard and the eral manager of the rail- ways will be German Regarding contributions various German industries. are by b f im the eport First Mortgage Bonds. has been impressed and desirability of intributon L German ss than to b » mmittes fairness e « with the requirin: ration | try, a to rep indu 5000 ments from v of not )1d marks first-mortgag. 000,000 represented IS hearing per cent interest and ¥ cent sink ¥ pointed 1 concerns through ing fund n ndus profited in many the depreciated cur- sency. such as the long-delayed pay ment of tuxes by industrial concer and have profited by subsidies grant ed and made by the Ger- mun government and by the deprecia- | tion of emergency money swhich they 1SS Notwithstanding loxs incurred the industrial cou- ens. the comr feel the burden imposed by the 100 kT them to lear The provision contemplated mmittes for treaty payments is ollows is vut by the s Budget Moratorivm Period. torium period reign loun and ) on railway 0,000,000 gold n interest on r 1 T (200,000, @ total ccond nds N part [ . mar ilway tinclud 0,000,000 i interest and budget sale 1.22 Lalunce on in- al debentures on. includin shares, a way W0 Third ¥ on railway bonds bentures, from port tax and from budget, a ar, and trans- it of a | exceed | Fourth way tax and from huds 0000000 gold marks 0,000,000 ontingent addit excreding ¥ ntures, x from hud 300,000,000 gold marks With v [0 | that n paym plus ports andard fth T that the Iy establish pos Vital. convineed that ted policy with regurd to the t of the sential btaining Germany Exchange I We are of co-ord the reparatior to any practical scheme the maximum sums from {for the benefit of the allies | “The sreater the extent which ment may be rendered antotma * and a matter of habit. and lindependent of a fluctuating politic {attitude toward reparations, the le Will be the friction and the greater will be the real stability of the Ger- man budget. In the la sort th t security is the interest the |German government and people to accept in_good faith a burden which the world is satisfied will be within their capacity and to liquidate as speedily as possible a burden which 11¥"4nd should be onerous.” exchange lies at T problem, and is ¢ o Reasons Given by Experts for Plans To Revive German Industrial Life| !ihe general secretary of the repara- | By the Associaied Press, PARIS, April S—Part two of the Dawes committee's report deals with the conditions the experts found con- fronting them when they began their work, gives the reasons which led them to some of their conclusions and goes into various detalls regarding the currency, the finances, budget- making and the imposition of taxes and means of collection and adminis- tration. The committee points out that when it took up its task the German currency could hardly be called sta- bilized, but was rather in what might be called a state of “unstable equil- ibrium.”" As measured by gold value the currency was deficlent in_ vol- ume, rather than excessive, being only about half the pre-war volume, and to meet this there %ad been re- sort to various devices as substitutes, such as the use of foreign currencies, token money and ultimately the es- tablishment of the rentenmark. Other Factors Found. As regards the temporary equilib- rium the currency has reached the committee found the psychological aspect to have played an important part, notably by reason of the. efforts being made to balance the budget and the appointment of an expert com- mittee by the reparation commission. The prevailing conditions, the com- mittee found, had produced a dearth of liquid capital, but there were re- sources through which this might be remedied—for instance, the German balances abroad and the foreign cur- rencies held by the people—resources which would be available if there were confidence in currency stability. In addition the need was felt for a new bank, the establishment of which was necessary to restore the old con- ditions of German banking, and in its desire to see such a bank established the committee went far beyong the original_gold bank plan formulated by Dr. Schacht, the German currency eommissioner. Takes Up Taxation. The report then takes up the ques- tion of the measurement of Ger- many's burden and of what it calls gommensurate taxation. In Ger- debt that their ng with her int s contrasted countries manys her ‘position of the allied | special budget provisions for debt intercst and reduction. The prob- lem was how to find a commensurate tax burden morally defensibie, and the committee expresses the feeling that with Germany fully restored and economically prosperous its rec- ommendations “are well within what can be morally justified on the prin- ciple of ‘commensurate burdens’ " Taking up the subject of budget of 1924-25, the committee notes that the estimates were made under circumstances of an economic crisis and points out that normalit cannot be effected overnight. Three essentials, however, wero considered by the German finanoce minister nec- essary to enable the estimates to be lived up to, these being: For Bank of Issue. “First, that the bank of fssue, which would serve as a hasis for the grant of credits, would be estab- lished; second, that the full develop- ment of German economic life should not be restricted by the severance of the Ruhr and the Rhineland; third, that Germany enjoy complete free- dom in her economic relations with other countries.” The committee adds: “The first and second of these con- ditions will be fulfilled if our rec- dmmendations are accepted and they appear to us to be essential to bud- get equilibrium. As regards the third, we understand that Germany's commercial freedom is restored under the terms of the treaty in less than twelve months’ time.” The budget, the committee feels, is exposed to real risk of deficit, large- Iy by reason that the revenue may niot come up to_the estimates. As to the expenses, however, it considers that the amount for unemployment relief will probably be not so great as estimated. Wealthier Are Favored. Regarding taxation, the report finds the income tax insufficient as bear- ing upon the wealthier classes, who have escaped with less than their share of the national burden, and re- assurance by Germany that the in- come_tax scales shall be properly ad- Justed Is necessary if she desires the w with the | THE EVENING lallies and her own working classes | to_realize its good faith. The committee finds that there has been no proper provision for dealing with incomes from abroad, and the !necessity of adjusting inequities in !this respect is pointed out. Another need, the committee finds, |is the establishment of a clear/ prin- {eiple for governing the financlul re- !lations of the reich and the federal s and communes. It considers it | essential that at the earliest possi- ble moment_preparation of complete statistics of receipts and expendi- tures of the states and communes be umed. The financial systems of are such, it points out, that the reich budget might be suffering from various ills while at the same time the communal budgets were enjoying considerable prosperit; It makes no ailed recommendations on this point, but holds out the idea that self-interest might be largely relicd upon to bring about an adjustment if the committee” e accepted in their entirety Responsible ax Whole. not uflic in our judg- sa the report, in in supine contentment with nt situation merely beeause Leen Hite result of constitu- evolution. Germany waged as an undivided whole, and the neial responsibility of the Reich 1o the allies eannot be qualified or we ned by an attitude of passive acquiescence in the undiminished | rights of subordinate areas. So long as Germany has any external obliga- tion they must be paramount and the resouree nally to be assigned to communes must and care must be taken that thes resour re than adequate to legitimate It ment to T the pry it has tional . war i o secure s not 1 The report then takes up th | sideration of the various taxes ommended. Tt says there obacco monopoly but manufacture of toha continue under suitable which the committec These include the expropriation of unprofitable establishments and the formation by the remaining existing manufacturers of a consortium, th state to buy its products at prices fixed at regular intervals. Importers would e treated in the some manner rx would be licensed and n their s from the st chouses. con- rec- o only tions of committee deals with estimates of the these operations and the sibilities and revenues therefrom reparat It expresseg belief that through its plan a much larger sum can be realized, while decreasing the burden on the consumer through elimination of the less efficient fac ories wnd redu of the surplus profits of intermediuries. As regards indirect tax t declures the rutes erally too low, and iner without cun but th should be redu r of other fe r o otrans and the the petrol Profits. ext ofits tes ively P from for the re rogen- susceptib pution : turnove mew axat of =4 nd The wdvisability of an in- tax or the im upplementary duty o mentioned T more revenue the committ much the taxes ustomS Teven . ment of the At tobacce nd of for anr n buds of Chief. subeom > controlled fincd ould sultative have and resented port into detail with m of depositing the revenus to the central bank to an he disposal of the com- This should 1 ronsibility he but DAWES SEES PEACE AID IN ACCEPTANCE O FPLAN BY REPARATIONS BODY ontinued from First Vage.) received nt and its nd satis to writ- with va- hoth srmation vernme minons industry German tives factory answers in T ten Inguiries. In conne Fious features of its the purpose of gather nd fc advie the its assistance outside national reputation reports and st conomists world-wide standing |have been & hands. It has I {also the benefit of the acc umulated |information heretoforc gathered by the | re tion commission, In its work the full com {hela since January 14, {eight meetings. The subcommittee on the stabilization of currency, « Iposed of M. Parmentier, Sir R. M. | Kindersley, M mile Franqui and Prof. F. Flora, assisted by Mr. Henry M. Robinson and under the chair- manship of Mr. Owen D. Young, has held sixty-eight meetings, and the subcommitte on balancing the Ger- man budget, composed of M. Alix, Baron Houtart and Dr. Pirelli, under the chairmanship of Sir J. C. Stamp, held sixty meetings. These sub- committees have also had the stance of Mr. Andrew McFady and ture frou reser vol -~ 1 in experts of The ments of mittes has tion commission. The time of the committee outside of that has been given largely to investigation and study. Free Agent Colleagues. { “In speaking of my colleagues and report, 1 feel known to the reparation commission and to the world that their govern- ments have in no case limited their |complete independence of the judg- ment and action, either before or after their appointment by the rep- {aration commission. Limited only by the powers granted by the commi sion, each of my colleagues has per- {formed his work as a free agent: these men, searching for truth and advice thereon, were answerable only to their conscience: In grant- ing this freedom, the governments have on the same lines followed the commission’s spirit and intent in con- stituting the committee, but in so doing they have paid the highest tribute which governments can b stow, namely, complete confidence a time of crisis in human affairs. In their ion, in_their independence of thought, and, above all, in their spirit \of high and sincere purpose, which rises above the small things over which the small so often stumbls, my colleagues have shown themselves worthy of this trust. “That their work, which T now place in the commission’s hands, may assist in the discharge of the com- mission's great responsibilities, is their prayer, and the knowledge hereafter that it has done so will be their full reward. (Signed.) “CHARLES G. DAWES,” z “Chairman.” —— e Holland's plcturesque skyline of windmills is fast disappearing and fn their place the very modern electri- cal transformer = towers are rising. The chief purpose of the windmills was to pump flood water from the dykes, to protect the lowjlying fields from overflow. But like all the crude in- ventions, the windmill often failed to work when rains were heaviest. Now. however, the electric motor will work whenever current is turned on regard- less of weather, nad Dutch farmers will continue to prosper. recommendations | or the Reich | uld be | xation pos- | considerad | not | ittee called | pub- forty- | m- | as bearing upon the value of this| that T should make | STAR, WASHINGTON, D. . WEDNESDAY {GOOD FAITH DEMANDED IN DAWES By the Amsociated Press, PARIS, April 9.—An official sum- mary of part 1 of the report of the first committee of experts follows: 1. The attitude of the committee: (1) The standpoint adopted has ‘!--‘en that of business and not poli- | ties; (b) Political factors have been con- | sidered only in so far as they affect | th> practicability of plan; : (¢) The recovery of debt, not the imposition of penalties, has been sought; (d) The payment of that: debt by srmany is her n ary contribu- tion to repairing the damage of the var; lG | Good Faith Demanded. | (e) It is in the interest of al' par- !ties to carry out this plan’ in that | good faith which is the fundamental {of all business; ! (f) Our plan | principle—the | many is not an end in itself; it is only | part of the larger problem of the | reconstruction of Euror rantecs Propose: not political rman | political unity For success in stabilizing currency and balancing budgets Germany needs | the resources of German territory as | defin by the treaty of Versailles snomic activity therein. Militury aspe continual and guaran litical guarantees and pen- re outside our jurisdiction: The military aspect of this prob; beyond our terms of refer- Lased upon this nstruction of Ger- are eco- Oppowes Military Club. Within the unified plan requires that ! fective operation | organtzation exists, | pede the free exercise of economic ac- (2) there shall be no foreign | economic control or interference other | {than that proposed by the plan, but! [adequate snd productive guarantees| i | and | ©) territory ! when It is in (1) 1If any mili it not must im= | | | tivities are provided 4. The committes () Stabilization of currency the balancing of bud, are inter- pendent, though they are provision- ly sep for ¢xamination. ) Cu ability can only aintai ts nor | balanced only iable cur- taxk | | enable Ger- require t arnal ents of Germ | Productivity expected from | sing population. technical skill, | material resou and eminen in | frdustr (b Pl ny nis and treaty pa Wl futry 1 beer the war. | capid i improved sinee Stabilised Carreney Vecemsary. | issue. il henefit especially conditions & Currency and a bank ANl i Under ¥ ca classes W from currencs or; present | stabili b) ren- ter- | s far from | N srary o) A up or the reichslank The ma (1) to tion to Eold with as ank wi s stable in | privilege bank ex- | the unt banker, but wdvances to har i government ernment control. the | 3 strictl 4 on deposit reparation payme ) the capital of the bank will | four hundred million gold marks it will be directed by @ German fdent and managing board. who can, assisted by_a German « tative duc i \ rers pre- 1 furthe including 1 foreis Baluncing of Budget i Budget and vep: ltion retier | tan temporar. German hudget ¥ faui superyis ) scal "~ Fu nt reigr to the 1 this report cu vi (¢) Temporary relief from charges the budiget for treaty obligations; | (i) Such relief not to suspend liveries in_ Kind, principles burden v obligations 2 anced budgets (1) Balancing the budget {entail merely provision for internal dministrative expenditure: () Ger- must also pay within the ut- limit her capacity for her obligations; (3) the balanced without nec- with the total capi- Germany; (4) it cannot 1y balanced unless the | annual charge is fixed for a consider- able period on a basis clearly pre= scribed in advance Recognizes Commensurate Tax. (b) Commensurate taxation. (1) Government internal debt has beon' | practically extinguished by the de- preciation of the currency; (2) new debt charge odght to be met com- mensurate with the burden of the Fronch, English, Italian and Belgian taxpayer; (3) the treaty recognizes this principle; (4) it is morally sound; (5) it is economically just in its in-! fluence on costs of production: (6) | | this principle has been applied to the! i full limit of practicability. (e) Allles share in Germany’s pros- perity. (1) Germany's creditors must Share in the improvement in Ger- many’s prosperity; (2) this will be | 8ecured by an index of prosperity. (d) There is an important difference between the Germans’ capacity to pay taxes and German ‘s capacity to transfer wealth abroad. % Normal resourses from which payments are made. Germany will pay treaty charges trom three sources—(a) taxes; (b) raillways; (c) industrial debentures. Plan for Balancing Budget. (a) From her ordinary budget. (1) 1924-25 budget may be balanced if! it is free from peace-treaty charges; | (2) 1925-26 budget receiving five hun- {dred million gold marks (above pointg 3, 4, subject to addition or re- duction in certain contingencies) (5) 1928-29 oné thousand two hun dred and fifty million gold marks. { This is considered a normal year and la standard payment hereafter. Ad- |Qitional payments will be made, de- | pending on prosperity. (b) IFrom railways: (1) Railway bonds—(a) eleven milliards of first mortgage railway bonds, against a capital cost of twenty-six milliards, Will be created for reparations; (b) these bonds bear 5 per cent interest and 1 per cent sinking fund per an- num; (c) in view of reorganization, interest is accepted as follows: 1924- 25, 330,000,000 gold marks; 1925-26, 465,000,000 gold marks; 1926-27, 550,- 000,000 sold marks; 1927-28 and thereafter, 660,000,000 gold marks. Distribution of Securities. Behind the bonds there will be created: Two milliards of preference shares, to be reserved for sale to the public and thirteen milliards of com- mon stock. Three-fourths of the pro- ceeds of the preference shares will be applied as required to the pay- ment of debt and for capital expendi- ture of the railways. The remaining 500,000,000 of preference shares and all the common shares go to the Ger- man government. (2): Transport tax ontinu- | of | does mot | many mo: extorn | buaket o | essarily d {tal debt e of ! | German i sul FIRST COMMITTEE REPORT, PART 1 —After 1925-26, 290,000,000 gold marks per annum for reparations and balance to the German government. () Industrial debentures—(1) Five milliards of industrial debentures are provided for reparations; (2) the re- sulting charge on industry ls less than that existing before the war and now wiped out by depreciation; (3) these bonds bear 5 per cent in- terest and 1 per cent sinking fund, id est, 500,000,000 gold marks per annum; (1) pending economic resto- ration, interest and sinking fund are accepted as follows: First year, noth- ing: second year, 125.000,000 gold marks; third year, 250,000,000; there- after, 300,000,000 gold marks. Provision for 10. Summary of treaty payments. (a) (1) Budget moratorium period— First year, from foreign loans and, part interest on rallway bonds. There will be a total of 1,000,000,000 gold marks; second vear, from part in- terest on railway bonds and on in- dustrial debentures, from a budget contribution through sale of 500,000, 000 gold marks railway shares, a total of 1,220,000,000 gold marks: (2) third year, from interest on railwa: bonds “and on_ industrial debentur from transport tax and from budget, total of 1,200.000,000 gold marks. wct to cor nt additions or re ductions 100,000 gold marks; fourth interest on rails way honds industrial dehen- turcs, from transport tax and budget, total of 1.750000,000 gold marks. subject to contingent additions or re- ductions of 250,000,000 gold marks: (3) Standard year—Fifth vear, from st on railway bonds and on ex- sl debentures, from tr and from budgeg 0,600,000 gold marks, 40,000,000 plus & sum_computed dex of property. Interest on the securities, but not the proceeds of their xale u - figures () The first year will begin to run from the date when the plan sha have been accepted and put in fective execution Liability In Designated. 11. Inclusive amounts and eries in kind (1) The above sums all amounts for which Germany may he ayment. provision for thereafter deliv- cover |{GERMAN CAPITA AT 6.75 BILLION GOLD MARKS A Pross 2 By tie Avsociat PARIS, April An official mary of the report the second committee of experts follows: sum- Preamble “The committee means of the of of 1 and consider estimating the amount exported capital and bringing it b: to Germany thirty-eight meetines in Paris It adopted the date of De- cember 1923, as that to which its estimates relate. Tt Is not possible to fix precise figures, but the com- mittee has laid down maximum and minimum limits between which the actual amount is to be found Section 1—Method of work While ling themselves o to rlin (a) a ed the method of nquiry of bankers and busine throughout the world as to and confidential transactions part of Germans s men epecitic on the Method of Procedure. (b) Instead it method a ay opted the fo lowing The committe jestimated the total value of German capiful abroad at the outbreak of the war. (2) 1t estimated the total re- duction thereof during the war as result idverse trade balance d that period, advances I ier allies, loss by sequestra- property in allicd and countries and loss throug ation in_value of uritics estimated the total accretions 1 foreign assets during the resuit of sales of German interest accumulations. r- ing ier- It to Gern war as securit {%ale of gold and profits realized from territories oceu by pied ( 4 of on re- mate of German for- eign holdings at the time of the armistice. Methods of Increase. Since that date until Decem- 31, 3, methods of increase of foreign holdings have been as follows: (1) Chiefly the direct sale of paper marks and mark bank ecredits; (2) the sale of goods, real estate, pre- cious metals; (3) interest on accumu- lations, tourist expenditures, foreign money expended by armies of occupa- tion “in Germany: (4) remittances from Germans abroad, earnings of (d) ber | transportation companies for trans- RETURN 5 SUNDAY, APRIL 13 SPECIAL TRAIN Lv. Washington.....12:30 am RETURNING Lv. New York (G R R. of N. J. West 23rd St. Liberty St... Standard Time. For Details Consult Ticket Agent BALTIMORE & OHIO gsT, 1879 APRIL 9. 1924, T Sales of gold aggregated one and a | half milliard gold mari (c) Sale of German real property and securi- | are to be, {i. conginued but are paid for out of bal- | L8 10, forelggers upproximated onc | t, i lisble to the allied and associated powers. (2) Deliveries in kind “rench dele Prof. Allix. When any question sccurity of France was (Parmentier) was adamant. Once-as- ured that no concession at the ex- peuse of Fi <t to wafely us involved s forcmost in suggest ing 1i onstructive measur Qesizn ni about united tion. technical equin ment. high ability and exerting grear influence the rommittee, he is y 80 modest that I imagine ke does n suspect his commanding influence o the retirement.” r Attacks Neport. ents are not shared i who, like several othe rench writers, off. comment—an, condemnatior— report befor it is published “The French terms of referc could hard than v collea ates, M. Parmentier and involving the broached ho mount h a ability through is obviated by a xparts, by the ver of the committer to obtain mor rom the “We are f them. Never h is presente or: resumin cditor of vergencies ween the 1 Germar her e Le Cause (a) Flight of in the m of factors, namely ance the | raising ot it was ted by the of the German people toward the ment of Germany's war credit | was marked by ingenious dey | evade restrictive legis also influenced Ly the ulators timid ins (b) Neither Je severe penalties hamper | of capital or resulted in the of assets abroad. Under the conditions above stated th strates the ineffectiveness tive legislation and the feels that it would have | tive whether or not been fully enforced of Flight. capital was a r the usual economic | . the failure to bal-| budget, and the | loans, Dispute on Rubr. ¢ Ba A inflation national ancas in the bank. | ectionss, Contisoid 12. How the anhual payments are o German foreler nors coss made by Germany: i sets. (a) The amounts will be raised in Conclusions of Research. gold nearks and paid into the bank. = (b) These payments cover Ger-| (2) Committes estimates that Ger-| many's annual obligation. man capital abroad of every kind# byxnt}'zx:n%!‘-;rrgrmt~nls are received | whether liquid or in permanent in- % (1) Germany's creditors will usa];’“"fll‘“h& was not less on December these morlexs fn Germany or convert | 31, 1923, than 5.7 mlliard 4 K , 1923, 57 m gold marks, “‘f")" into forefgn currencies. |and not more than 7.8 milliara gold ) Experience will show the rate = a gol and extent jo which the conversion marks, and it thinks the middle fig- can safely tmie place {ure of 6.75 milliard gold marks is the o), The risk to approximate total. This fizure by b g STl }:‘.fllnpurlson ith the 1914 estimate of 1 S i ierman fofign holdings shows (d) Sums not remitted are ac- | aiuciion in fomeine Briginee oy cumulated but with & limitation of | proximatery 21 miiliard £o1d marie amount. (b) In addition to the foregoing Added Gumyantee Given. L‘::“r"in curreney now in Germany oximates d . 14. Guarantees in addition to Tallway | (8) 10 must b o A and industrial bonds: foreigners hold property in Germany, (a) The following revenues are pledged | Wiich has & counterbalancing effect, for a continuation of collateral security | value «f such properts oo from ohe for budget contributions and other pay-. (0.0ne ahd a half milliard gold marks. | ments: (1) Alcohol, (2) tobacco, (3)|¢poion 4 -Conclusion as to i ringing exported capital bac beer, (4) sugar and (5) customs. e g/ capital hac (b) The yield of this sost of revenues is estimated to be substautially in ex- cess of required payments, i loan—its cotditions and purpose: Foreign loan of 800,000,000 gold marks {meets a double purpose (a) Requirements of gold reserve of new bank; (b) Internal treaty purpose 16. Orga payments for cssential Organization for Administration. The organization consists of— (a) A trustee for railway and indus- trial bonds (b) Three co ways, (2) the revenues (¢) An agent for repara who will co-ordin; nd will g missioners of (1) rail- ik and (3) controlled ion payments, ivitics of the | over the trans- The nature of th The plan is divisible union: aim of Germany (1) to en- transfers to be made to ) 1o take the stion of what Gerr can pay out of the field of speculation and put it in the field of practical demonstration, and (3) to fasten a final and comprehensive agreement upon all the problems of the rations comm: questions as circumsts ake this Must Eradicate Caases. (c) Th only way to prevent exodus | of capital and encourage return #radicate fundamental cau tion must be permaner the budget must be bank of issue on a s lished. (d) The committes knows the con- clusions of the first committee of ex- ports and if effect is miven to the recommendations it thinks considerable part of (ferman abroad will return to the ordi course of trade. (¢) Austria i< a case under a stabiliz is 10 | From es. Infla- | stopped lanced s00n pos- : sible L ABROAD SET ary to n point whe i curreney th back portation of forcign zoods, insurance profits (&) the armist ) bu cash p the ¥ tour: on Germ: oy 1 committe | F decrease A SHOE FOR TIRED FEET believing is not finance ess duri the that uired wi e a4 go allies un (#) Gern (1) interest abro se of impor ments to the of Versallles: expenditure; securities held making all compu has not relied reports of (erman imports I ports, but has revalued t | modities on the basis of current world prices at pertinent dates | The result of ol legisiation {country's neverthe transition {that ., Gern \nesty for {bringing th lated German {abroad and tha {fered for subscr {Ioans which are b {DAWES WELCOMES REST AFTER STRAIN 1 ymmittee 1y might grar mited time r capital back law in sending special te be made in fore su an n_official and ex- t ur- | ntinued from First Page Deprecia- non- (b) The war period. tion of German payment of interest | o of repa | assets L G. B. WHITE CO., Inc. 1311 G Street N.W. r Y. W. C. A. Take Ei and liquid, re du i Matin ‘I can not leay “witho jon measures in a loss of approxim Ilard gold marks. (2) Dur profits and exploitatio northern France, Pol nd Roumania approximated rd gold marks; and the | | suttea 16.1 th Be war gium huania 6 milli ) Post-war period uses of reduction many’s trade balance ing of h payment les ®inder the treaty sailles caused reduction of betwee wnd 10 milliard gold marks. Farn- ings from German shipping, ance, ete., greatly redu o auses of increased of mark credit per marks T nd milliard & marks purchased hy vidual i { | Priv pal were found Many Desirable Corner and Inside LOTS Vicinity 24th St. & Wyoming Prices Reasonable Ellerson & Wemple 734 15th St. Phone Main 603 | Attractive Values in ining Room Furniture We are adding to the appeal of unique desig and perfect construction the advantage of price below usual. The PRICE of Delicios - Instant . 'COFFEE Has not been advanced YET :onhmical than Below we are listing two most attractiv values. 10 pc. Solid Oak Suite (illustrated) $385 a most attractive type for the summer home or small dining room. Decorated in color. More e Mothers, Do This---! When the Children Cough, Rub Musterole on Throats and Chests No telling how soon the symptoms may develop Into_croup, or worse. And then's when you're glad you have a jar of Musterole at hand to give | prompt relief. It does not blister. ‘As first aid, Musterole Is excellent. Thousands of mothers know it. You should keep a Jar ready for instant u. It is the remedy for aduits, t00. Re- lleves sore throat, bronchitis,” tonsillitis, croup, stiff neck, asthma,’ neuralgia, headache, congestion, pleurisy, rheu- matism, lumbago, pains and aches of | back or joints, sprains, sore muscles, chilblains, frosted feet and colds of the Chest (it may prevent pneumonia). To Mothers: _Musterole is also ‘made in milder form for babies and small children. Ask for Children’s Musterole. 35c and 65¢, jars and tubes | ~ | 9 pe. Solid Oak Diing Room Suite $275 —consists of an extension table, server and 5 side and one armchair buffet Second Floor DULIN&MARTIN e 1215-1217 F Street and 1214 to 1218 G Street Hours: 8:45 to 5:30