THE " EXCHANGE " QUESTION.
A further important feature of the Dawes Scheme was the plan. for preventing, as far as possible, the German Reparation payments breaking the German exchange. A moment's thought will show the reader that it is one thing for a country to pay into a central fund huge sums in the currency of that country and quite another to exchange such large amounts into a foreign currency without occasioning a breakdown in its egehange value. The first operation, namely, the collecting of the marks, - merely involves certain extra taxation and effort on the part of the community in producing the required total. The second operation, however, means that a wholly abnormal demand is created for.. foreign currencies over and above the normal ;demands for ordinary trade pay- ments. - Accordingly, what was -known as the Transfer ComMittee was appointed in connexion with the Dawes Scheme and it was part of the duties of that Committee to " protect " the exchange. They had and have, in fact, the-power to stay the actual remittances of marks abroad if by- doing so the 'collapse of the exchange is threatened.
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