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1 eague of Nations Comes Into
Dawes Plan—Official Summary
m
L_J
The league of nation* la drawn Into
the reparation* problem by the
Dawes report, while an unofficial rep
resentative of the United Statea la
elated for an Important rol* In the
execution of the experts' plan. An
American member of the general
board of control for the proposed new
gold hank of Issue Is quite likely to
fill the Important post of ''commis
sioner.” His duty will be to decide
when Germany’s capacity to pay has
been reached, while the league fi
nance committee will be asked to ar
bitrate it the commissioners' de
cisions in applying the "index of pros
perity” are disputed by either Ger
many or the allies.
► Germany to Pay.
A business matter bereft of politics
Is how the experts describe the task
they have just completed. They in
terpreted tlie object of their work as
tending to the collection of the debt,
rather than to the application of pen
alties. with a purely economic solu
tion in view.
Recognizing tlie obligation of Ger
many to pay and declaring that it
has resources with which to pay, the
experts insist that if Germany’ does
pay it must have its hands free to ex
ploit its economic resources.
The experts carefully omit in their
report mention of the Ruhr, but make
it plain that the French and Belgians
must satisfy themselves by leafing
garrisons in (he Ruhr, if they’ see fit,
but taking their hands off the Ruhr
and Rhineland railroads and tlie Ruhr
industries. *■
The first prerequisite to the pay
ment of reparations, the experts as
sert, is sound money in Germany.
They propose to this end the estab
lishment of a new gold hank of issue
With 4110,000,000 gold marks car
in tlie organization of which
make it to tlie interest and profit of
Germany as well as 1o tlie advantage
of tlie allies, to co-operate.
Index of Prosperity.
Germany's production, they say,
xvill enable it to meet Its own require
ments and raise amounts to apply to
reparations as contemplated in the
plan. These payments, fixed on a
sliding scale, run from 110,000,000
gold marks in .1920 to 2,000,000,000 in
1934.
In order to prevent these payments
from affecting adversely Germany's
financial stability, an index of pros
perity lias been fixed, making it pos
sible to judge whether the amounts
of the scheduled payments are or arc
not beyond Us capacity.
A general board of contra], Includ
ing an American, with allied, neutral
and German members, Is the experts'
solution of the C fficult problem of
guarantees that Germany will exe
cute the terms of eventual settlement
under their plan. The experts found
this plan most likely to satisfy the
allies and at tiie same time prove ac
ceptable to Germans. One member
of this board, with the title of com
missioner, will he vested with the
important duties of deciding accord
ing to an index of prosperity’ when
the payments provided for in the
plan may prove too onerous and may’
threaten tiie upsetting of German
finances. *
Based on Statistics.
The index is to he based upon Ger
man exports and imports, the total
budget receipts and expenditures,
railroad traffic, the monetary value
nt tiie consumption of sugar, tobacco,
beer and alcohol by the total popula
tion and the consumption of coal.
Percentages will he fixed on the av
erage statistics covering these bases,
f rst for three years, then for six
years, the percentage of each of the
six groups compared with the base
being seiarately computed and tho
average of tiie six percentage results
forming the index.
When the resources exceed the In
dex. supplementary payment on rep
arations are to be made In propor
tionate amounts; when the index
proves deficient, basis payments shall
lie made for tiie period on which the
calculations are based. But substan
tial supplementary payments shall
not become due until allowance has
been made for previous deficiencies.
At this point tiie league of nations
is brought into the plan: any disputed
point upon the application of the
statistics on tills index is to be re
ferred to the finance section of the
league for arbitration.
.•lollgage On Railroad*.
Germany’s railroads, estimated by
tlie experts to be worth 28,000,000,000
gold marks, with a net earning ca
pacity as high as 1.000,000,000 gold
marks yearly,, were found to be an
available means for securing repara
tion payments and aiding German
f.nanres. The experts propose a
blanket mortgage of 11.000,000,000
gold marks on the entire German
railroad system, bearing 5 per cent
Interest, with 1 per cent sinking fund
annually.
The Interest and sinking fund on
Hie mortgage, they figure, represent
less than 9 per eent on Hie entire
capitalized value of 28,000,000,000.
Full Interest will not be required dur
ing the period of reorganization, but
tlie payment ..f aau,000,000 marks will
be naked in 1021 and 1925, Increasing
on a sliding scale to 880,000.000 in
1927 and 1928, which the experts
think ought to become normal years.
German industry under the plan is
expected to provide 5,000,000,000 gold
marks, represented by first mortgage
lends bearing the same rate of Inter
est as tlie railroad Isinds. This
amount, the experts explain, is less
than Hie total debt of Hie industrial
undertakings in Germany before the
i. nr.
'flic interest on these bonds will lie
paid on a progressive scale, begin
ning the second year w ith 2 4 per
' "nt: 5 tier cent Hie third year and 5
per cent plus 1 per cent sinking fund,
tlie fourth'year. In the event of do
fault in tlie payment of the interest
on Hie sinking fund or principal upon
either railroads or Industrial bonds,
provision for the recovery of the de
ficiency from tlie German government
through the commissioner of con
trolled revenues.
Summarizing the proceeds from all
Hie provisions in tlie plan for treaty
payments, tlie experts estimate that
they will produce 1,000.000,000 gold
marks Hie first year, 1,220,000,000 the
second year, 1,150,into,000 the third
year, 2.000.000,000 tlie fourth year and
2 500,000,000, ttie maximum payment
to be required from Germany annu
ally, tlie fifth year and thereafter.
Reginald McKenna and Ida col
Imwum on the fecond cotpooiRee flpd
4
I
that the Germans have 8,750,000,000
gold marks abroad and that all this
sum represents purchases of paper
marks at a dead loss by 1,000,000
foreigners/
They find that. In addition to these
assets, abroad, there is in Germany
foreign money approximately to the
amount of 1,200,000,000 gold marks
while foreigners own in Germany
property to the amount of 1,500,000.
000 gold marks, which is subject to
special taxation and consequently
ought to be taken Into account in
an estimate of Germany’s resources.
Needs Help From Abroad.
Germany needs help from abroad
to the extent of 800,000,000 gold
marks, partly to capitalize the new
gold bank of Issue and partly to
meet expenditures during the period
required for her to balance her bud
get. The experts say that extension
of this help, together with the share
the German treasury will have in in
terest on the railroad and industrial
mortgages, will give Germany an in
centive to accept the plan and carry
it out.
The idea that surplus revenue
alone can be applied to the payment
of Germany’s foreign debts is re
jected by the experts. Payments
they declare, ought to be made to her
taxable capacity and any deficiencies
in resources from mortgages must be
made up from taxation. It is a sim
ple principle of justice, they point
out. ns contemplated in the treaty,
that the German people should be
taxed at least as heavily as the peo
ples of the allied countries, and the
only limitations should be that of
practicability.
The experts make a distinction be
tween the amount of money that Ger
many can raise for the reparations
account and the amount that can be
transferred to foreign countries. Cur
rency and budget instability might
result from overstraining of its ca
pacity for making payments abroad.
Reparations, however, they contend,
may properly be included in the
budget. The index of prosperity as in
terpreted and applied by the “'com
missioner” is to be relief upon
to arrive at a proper balance.
The experts found that Germany
had been spending without stint on
complete installation of its railroad
system, which had been brought to a
point of efficiency unknown before
the war. The transportation system
and industries generally are provided
with the most modern appliances, and
ports and terminals have been ex
tended and Improved, furnishing ex
cellent sources of revenue and an
adequate pledge, along with monopo
lies, for the payment of reparations.
-miliary aapecii.
With respect to the military aspects
of sanctions and guarantees, the
Dawes report says:
"If political guarantees and penal
ties Intended to insure execution of
the plan proposed are considered de
sirable, they fall outside the commit
tee’s jurisdiction. Questions of mili
tary occupation also are not within
our terms of reference. It, however,
is our duty to point out clearly that
our forecasts are baaed on the ee
aumption that economic activity will
be unhampered and unaffected by any
foreign organization other than the
controls herein provided. Consequent
ly our plan la based upon the gesump
tlon that existing measures. Insofar
as they hamper that activity’, will be
withdrawn or sufficiently modified so
soon as Germany has put Into execu
tion the plan recommended.
As agreement with the railway ex
perts, the committee recommends the
convention of the German railways
into a joint stock company, adding:
"It la not our intention thus to de
prive Germany of the administra
tion of her railways In favor at the
allies. On the contrary, our plan de
mands only a modest return on the
capital cost, and so long as this re
turn is forthcoming we (Vi not antici
pate any interference In the German
management of the undertaking.
The railways are to be managed by
a board of 18 directors of whom nine
will be chosen by the German gov
ernment and the private holders of
preference shares, and the other nine
will be named by the trustee of the
bonds to be Issued amounting to 11,
000,000,000 gold marks, five of whom
may be Germans. The chairman of
uic iiuniu nuu uiB gcncrui nmnagei
of the railway* will be German.
Regarding contribution* from the
various German Industries, the re
port says: “The committee ha* been
impreseed with the fairness and de
sirability of requiring ss a contribu
tion to reparations payments from
German industry, a sum of not less
than 6,000,000,000 gold marks to be
represented by first mortgage bonds
bearing 6 per cent interest and 1
per cent sinking fund per annum."
It"Is pointed out that the industrial
conoerna have profited In many ways
through the depreciated currency,
such as the long delayed payment of
taxes by subsidies granted and ad
vances made by the German govern
ment and by the depredation of
emergency money which they Issued.
Notwithstanding aome losses Incurred
by these Industrial concerns, the com
mittee feels that th* burden Imposed
by the plan Is not too great for them
to bear.
Treaty Payments Plan.
The provision contemplated by the
committee for treaty payments I* as
follows.
Budget moratorium period: First
year from foreign loan and part in
terest (200,000,000) on railway bonds,
a total of l.ooo,ooo.ooo gold marks.
Second year, from Interest on railway
bonds (iiii-luding 130,000.000) balance
from first year) and interest on in
dustrial debentures and budget con
tribution Including the sale of rail
way shares, a to lal of 1,220,000,000
gold marks.
Transition period: Third year, from
Interest on railway bonds and indus
trial del>entures, from transport taxes
from budget, a total of 1,200,000,000
gold marks, subject to contingent ad
dition or reduction not exceeillng
250,000,000 gold marks. Fourth year,
from Interest on railway bonds and
Industrial debentures, from transport
tax and from budget a total of 1,750,
000,000 gold/ marks, subject to con
tingent addition or reduction not ex
ceeding 250,000,000 gold marks.
“Standard year: Fifth year, from
Intereat. on railway bonds and Indus
trial debentures, from transport tax
and from budget, a total of 3,500,000,
000 gold ouuk*.'' J
Brassieres
Very Special
Thursday 44c
White brsaaieres in the fast
en-down-the-front atyle—
daintly trimmed with em
broidery. Siae 3® to 46.
Baby Slippers
Fine wrashable kid or
patent combinations.
Many styles. Sizes 0
to 4.
Pair 1.00
Third Floor
Thursday Is Third-Floor Day
All Departments on This Big Floor Unite in Making It
A Day of Important Economy Opportunities
* . - ■1 — - -■ ■ - "^*7
Thursday
Hair Goods Specials
Pompadour* — Beautifully
made with double aide part.
Particularly adapted for the
woman who has scanty hair,
or for the woman who must
cover up dyed hair. Refu
larly 1 O QO
25.00, 10*270
Now' is a food time to get a
Lanoil Permanent W a v e.
Waved all over the head.
Specially priced 25.00
The Brandais Store—
Beauty Parlor—
Third Floor—West
Thursday a Wonderful Sale of 2,000 Fine
Apron Dresses
A special purchase in which are saved a great part of their value. Dresses of
/ -
Ginghams, Linene, Checks, Percale
Plaids, Cretonne Trimming
Regular $1.50 Models Thursday at
-
, !
Smart, practical styles in loose or
belted models, with novelty pockets
and braid. A variety of styles for j
every type. They are fashioned of
excellent material—indeed an excep
tional buying opportunity.
Sizes 36 to 1+2
Extra Sizes in Percales and
Ginghams
The Brandeit Store—Third Floor—South
Extraordinary Values in
Underwear
Third Floor Day in the Underwear Section is marked
with extraordinary price reductions. These items are
but representative of many other unkdvertised gar
ments.
Hand-Made Philippine
Gowns
> 1.39
Of aoft^aheer material, daintily
trimmed with beautiful embroidery j
at neck and arms. Sizes 15, 16, 17. |
Satinette Princess Slips
2.98 /
Fine quality material; adjustable \
hip hem; hemstitching and dainty
lace trimmed; bodice and strap
tops. Sizes 34 to 44.
4
Satin and Crepe de Chine Camisoles
Vfc Price
An odd lot of crepe de chine and wash satin camisolei
smartly trimmed with Val lace and ribbon straps.
TIm BrondcU 3tor*—Tklrd Floor
Wonderful Values in Stamped
Pieces
For Thursday we have specially
priced a great number of beautiful
stamped pieces. They are inex
pensive yet with but a bit of work
will become things of beauty.
Linen
Scarfs
to match pillow
cases; six beauti
ful designs. Each,
2.25
Pillow
Cases
42-in. tubing, fine
quality; six de
signs. Per pair,
1.75
Children’s Stamped Dresses
Ouickly made with outline and lazy daisy stitches. Clever little
patterns; stamped on excellent quality suitings.
»
Sizes 4 and 6 /I A Peach, Blue
Years v7C and Gold
Stamped Quilt Blocks
3 pretty designs; 50 of these blocks, stitched
together with 50 sateen, makes a beautiful
quilt. Delightful summer “pickup” work.
Set of 50
1.75
36-Inch Rountf Cloths
50-Inch Dresser Scarfs
Stamped on fine crystal cloth; of
three designs.
50c
The Brandei* Store—Tkird Floor—Woat
Shoe Savings for Thursday
Our Shoe Department is satisfy
ing the public demand for
shoes at popular prices,
yet we have not sacri
ficed in one instance .
\ quality of material or £
J workmanship. Every new
style in all new models.
Airedale Suede
Black Satin
Nude Suede
r,.50
Values to 10.00
Strap Effects
Sandals
Tongueless Ties
Colonials /
Gray Suede
Patent Leather
Black Suede
All Sizes and All Widths
The Brandcis Store—Third Fleer—Cut
Tweed Capes
for
Little Girls
Sizes 2 to 6 Years ,
Values
6,50 to 9.98
5.98
Tweeds
Checks
Coatings
All are well tailored and beauti
fully trimmed with ties, button*
and fancy buckleg. A great va
riety of youthful little style* that
are smartly becoming.
Special for Thursday
Tha Brandaia Slora
Fourth Floor—F.aat
The Mme. X Reducing Girdle
Has Unparalled Success
Exclusive in Omaha With The Brandeis Store 1
Gw 9.85 Pink 11.85
Seldom has anything introduced in this city been so
wholeheartedly welcomed!
A Girdle to Be Worn Instead of a Stiff Corset—
Made of Finest Steam-Cured (Not Acid
Cured) Para Rubber That Is Almost
Certain Never to Crack
it REDUCES HIPS AND WAISTS by
scientifically massaging with every slight- (
cst movement.
The girdle is worn over the clothing and is a
delightfully comfortable support for women of
ANY dimensions, largo or small.
// (wives 1 ou Instating the Appearance or
Slenderness—WHILE It Is Making
This Slenderness Permanent!
Almost its chief charm is the fact that you are wearing no
more clothes than ordinarily and yet are being reduced
with no attention at all from you. No inconvenient dieting
or elaborate exercises to worry about. Fat most often be
gins at. waist and hips—many women otherwise slender
lose their youthful appearance because of this. Let us fit
you. See the effect on yourself! No oblgation on *onr
part at all.
The Brandri* Store—Third Fluor
Glove Silk
Underwear /
The remainder of the specif*
purchase of “Her Majesty’s Sop f
Underwear” on sale for Thur*
day at
3.00 and 1^.00
Values
1.98
Step-Ins
In all shades of flesh, maize,
peach, corn and white. Regular
and extra sizes. «
Vests
Bodice and opera, plain and
fancy stitch styles, in latest
shades. Regular and outsizes.
Bloomers
Kxtra quality of jersey silk in the
latest shades for spring. Regu
lar and extra sizes.
IThr Rrtndeii Store
Third Floor—North
