Gilbert's Report

In a voluminous report on the working of the Dawes Plan during the first year of its operation, Seymour Parker Gilbert, Agent General for Reparation Payments, made public the following observations last week:

General Results: "The budget of the Reich has been balanced, and the mark stabilized. . . . From the point of view of reparation payment the plan has brought order into the management of the problem and assured determination by actual experience of the reparations that can be safely paid and transferred. Under it payments and deliveries are moving regularly to the creditor powers and in accordance with expectation."

Allotments to the Allies (expressed in gold marks):

France 454,500,000 ($109,080,000) Britain 190,000,000 ( 45,600,000) Belgium 115,333,000 ( 27,679,920) Italy 66,000,000 ( 15,840,000) Serbia 33,000,000 ( 7,920,000) The U. S 15,333,000 ( 3,679,920) Roumania 7,500,000 ( 1,800,000) Japan 5,000,000 ( 1,200,000) Portugal 5,000,000 ( 1,200,000) Greece 2,506,000 ( 601,440) Poland 750,000 ( 180,000)

Of these allotments four-fifths were paid from the proceeds of German external loans, and one-fifth from German railway earnings.

Transfers. All payments were made in kind, except in the case of cash turned over to the Allied Armies of occupation, to be spent for their expenses in Germany. Payments were chiefly in coal, coke and lignite.

Cost of Administration. Less than four-tenths of 1% of the value of the allotments.

German Internal Debts. Mostly wiped out during the period of inflation. No exact figures available.

Outlook. "The road to Germany's recovery is not fully traveled. The critical years, when the total allotments will reach 2,500,000,000 gold marks annually, begin Sept. 1, 1926. . . . The operations of the first year, under an 800,000,000 gold mark external loan, have not been so much a test of German capacity to pay as of German economy to adjust itself to a return to stable conditions."