Pinedale Roundup

FIRST COMMITTEE
TURNS IN REPORT

EVACUATION
OF GERMANY
IS
BASIS OF PLAN SUBMITTED
BY DAWES PLAN

Germany Must Pay as Much In Taxes As People of Allied Countries; Outside Interference Must Stop

Paris.—The report of the first committee of experts under Brigadier General Charles G. Dawes, which is practically agreed upon by the experts, though the working out of some details and the drawing up of the text may require another week, is based on these fundamental findings.

The German people must pay as much taxes as any of the people of the allied countries. Germany must pay the maximum of her capacity in reparations.

The German economic machine must be free to function under German control, unhindered by any interference from the outside.

Minimum sums must be paid at once, or in the immediate future, on reparations, these to be increased in proportion to the revival of Germany's prosperity and according to her economic conditions.

In order to put Germany in a position to carry out her part of the program which the report will suggest to the reparation commission on the basis of these general principles, the experts propose to set up an international bank, to have exclusive right to the issue of German currency on a gold basis. The bank plan provides for the cooperation of the allies and neutral nations with the Germans in supplying capital and in the management of the institution, which is to be located in some country neutral in the war.

The capital of the bank remains to be fixed. Indications are that it will be in the neighborhood of $400,000,000, of which half will come from Germany and the remainder from abroad. Foreign subscribers to loans to raise the necessary amount, or to the capital, if final arrangements so provide, will be secured by a lien on Germany's productive monopolies.

The setting up of a bank of issue is expected not only to assure permanent stability of the mark, but to furnish a flexible medium through which reparation payments may be effected without resorting to the purchase of foreign money with marks, with the consequent risk of another depreciation in German money.

The reich is supposed under this plan to deposit in this bank the sums required to pay interest on loans and minimum reparation installments. The allies will be enabled to draw on the reparation fund proportionately to their percentages fixed at Spa. They may check out cash or draw checks payable to products imported from Germany on the reparation account. Thus the reich may pay its obligations in its own money.