Report Outline
The Balancing of the Budget
Extra-Budgetary Contributions
Stabilization of the Currency
Special Focus
The stability which the adoption of the Dawes Plan has assured to Europe for at least a number of years is making possible the refunding of many of the foreign debts to the United States. The increased confidence which it has engendered is enabling Europe to return gradually to more stable economic conditions. Foreign loans in increasingly large amounts are being floated in the United States.
It is a little more than a year ago since the London protocol, adopted on August 16, 1924, made the application of the Daves Plan practicable. On September 1 the plan began to function and it is now possible to review its practical results so far as Germany is concerned.
Prospects of Success of Plan
In considering the present relationship between Germany and the Dawes plan, it should be borne in mind that the framers of the Plan emphasized the necessity of laying as little burden as possible on the German Government in the first three years of the operation of the Plan. Consequently in this first year the German Government has made no contribution to the Dawes Annuity and has thus been in a position to set its own house in order in the breathing space allowed it. The first Annuity has been provided out of the proceeds of the German External Loan and out of interest paid by the railroads on their bonds. |
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