The plan of stabilizing the mark (at 2,500 to 5,000
to the pound) is only feasible if the Reichsbank is relieved of the necessity of creating new credits. In. order to stop the expansion of 'the floating debt and afford Germany credit facilities which will enable her to re-establish her currency and her Budget, it is proposed not-that Peace Treaty payments should be suspended, for that would embarrass the Budgets of the Allies, but that the Powers receiving Peace Treaty payments should agree to guaran- tee German Five-year Treasury Bonds to the respective amounts to be received. In order that the scheme shall work successfully, Sir John feels that it must be entrusted to a body which enjoys 'the financial con- fidence of Germany and her creditors and which can work in close co-operation with the German Govern- ment. That is why he proposes the reorganization of the Commission. He suggests, further, that the scheme be accepted only in principle by the Commission, and be left for the respective Governments to approve or disapprove.
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