“DAWES” AT WORK.

Grey River Argus, 10 January 1928, Page 3

“DAWES” AT WORK.

FEROCIOUS DEMANDS. Upon German Industry. CREATE FINANCIAL PROBLEM REVISION NOW SUGGESTED. The growing alarm of the world’s bankers is reflected in the lengthy discussions now taking place among financial experts on the workability or otherwise oi the Dawes Plan. Th? unstable European conditions, the growing antagonisms between the powers and possibility of Germany being unable or unwilling fo pay are causing grave doubts io arise in tin* minds of the world’s financiers. German politicians, American bankers, and British profit-mongers are all seriously considering a “modification” or “a complete overhauling” of the present system of reparation payments. “Upon the workability of the Dawes I ’lan depends th? stability of thi' . . . world’s money markets” (“Financial Times,” October 24, 1927). The offer tof any financial crisis an the working class of Europe would be so terrific that it is important Io understand the meaning of the suggested changes. The first period after the war was the period c,f “Versailles,” i.e., of the military domination of Central Europe and Germany by France. The efforts of France to retain the hegomony ot Europe resulted in chaos ami disaster.

Starvation wages and unemployment for the workers of all countries; heavy taxation and high prices; ruthless military domination; unstabl** markets and tottering thrones all j reduced the inevitable result—the shadow of Revolution that had hovered menacingly over Europe since 1917, and that had only been crushed by military suppression, and blockade became once again an ugly real ity for the owing (lass. Then it was in 1924 that the Ameerican bankers came forward with th ir scheme for “tho Reconstruction of Europe.” i.e., the restoration of capitalist stability on the basis of worsened conditions for the workers of Austria, Hungary and Germany. I’he Dawes Plan set up a central financial machine for Europe on the basis of American and British credit ind put the Allied bankers in com plete control of it, and through control of the financial machine in control of German industry. It provided for Repartion payments on the following scale: — Ist year . . 50 million pounds 2nd ” .. 61 million pounds 3rd ” .. 64 million pounds 4th ” .. 89 million pounds sth ” .. 125 million pounds Thereafter 125 million pounds plus a supplement on the index of prosperity. 'l'he years of heavy payment are approaching. In addition at least 40 millions must be paid on loan interest. Germany was to be “squeezed like an orange till the pips squeak” by taxation, by interest on loans, and by heavy customs duties. The immediate result was our increase in hours and lower wages for the German workers. Since the inception of the Dawes Plan, American loans have poured into Germany, ami it is on this basis that German Industry is havnig a temporary “boom.” The Department of Oxerseas Trade Report on Germany (July, 1927) shows how German industry has been set on its feet at the expense of British Industry.

Value of German imports from England: 1913.—£43,792,950. 1924—£41,335,100 1925. —£47,181,650 1926—£28,224.800 German exports into England: 1913.—£71,911,250 1924— £30,574,150 1925. £46,779,950 1926. £58,125,700 “British exports to Germany for the most part benefit the banker who finances the transaction, the agent who arranges them, and the ship-ow-ner who carries but only benefits to a small extent, the British manufacturer, and the British worker,” — (Rep. on Germany). “In addition German competition is making itself felt increasingly in Australia.” —(Report). Exports into Australia. German £ 1922-23 59,800 1925- 2,821,000 British £ 1922-23 .. ’ 68,394,000 1925-26 65,840,000 The Central Press states that the increase has been effected mostly at the expense of British goods. The Dawes Plan may be “reviewed” and overhauled, but the problems will remain unsolved. It has failed to eliminate the fierce antagonism between the Powers. It has added to the difficulties. It only postponed for a short while the inevitable day when the European workers will realise their economic unity and overthrow once and for all the dominance of Financial Imperialism.