New-York tribune., 1919-08-02
Bankers Combine
In Treaty Charged
Ne,o York Tribune
WASHINGTON Bureau

New York Tribune
Washington Bureau
WASHINGTON, Aug. IA big profit
on 4,00O,000,000 transaction -
that is the plum which attracts the
international bankers in the peace
treaty, Senator George II. Moses, of
New Hampshire, declared after a close
questioning of Bernard M. Baruch, eco
nomic adviser to the peace mission, at
the Foreign Relations Committee hear
ing to-day.
Here is the idea as sketched by Mr.
Moses:
FlRST-Germany must hand over
to the Reparation Commission one
hundred billion gold mark bonds.
SECOND--The Reparation Com
mission deposits these bonds in
safe place and issues certificates for
them, which are divided among the
Allies. The United States is to get
none, according to the present inten-
tons
TH1RD-Needing money, such ma
tlons as France particularly, and per
haps all of them sell these certifi-
Gates, plus their own guarantees, to
the international bankers at a sharp
reduction from their face value.
FOURTH-The international bank
ers, having bought the bonds at this
low price, will eventually reap
profit Of billions when the bonds are
redeemed or when they pass them on
at much higher prices.
Expects Heavy Discount
Senator Moses said he thought it
likely, in view Of the great need OF
France for money, that the certificates
might be sold at heavy discount, al
though they are to pay 5 per cent
interest
THAT is the milk in the cocoanut.'
Mr.. Moses declared in commenting on
the situation after the hearing. 81
thlnk we have come upon a real trail
The Senate to-day received the pro
tocol to the German peace treaty which
President Wilson, with a brief accom-
panying message, sent to the Capitol
yesterday after the Senate had ad
lourned. An explanatory letter from
Secretary Lansing also was sent by the
President with the protocol
The protocol, which was drawn up al
Versailles, states the Allies will motif,
Germany within month after tht
treaty becomes effective of the identity
of tie persons to be handed over TO thu
Allies for trial, provides or a commits
sion to supervise destruction of tn,
Helgoland dcfences, and states tina
persons who committed ofTenses in th'
liquidation of German property will b,
punished. Other provisions clarity
clauses of the peace treaty.
There was no discussion of the peace
.reaty or the league Of nations on the
floor to-day, except for the reading into
the Record" by Senator Henry Cabo'
Lodge, the Republican leader, of tho
Polish treaty, which the Presiden
signed in Paris, but to which the Sen.
ate until to-day had not had access
Senator Lodge also read the agreemen
regarding the occupation of the Rhn,
district.
Only One Visitor
Only one Republican Senator saw the
President to-day, James f. Watson, OF
Indiana. He had been invited to the
White House yesterday, but could no.
accept until at that time.
AT the outset, Senator Watson com.
plimented the President on the faith
fulness of Bernard M. Baruch. al
every ones belief in you and in the
infallibility of your judgment was as
strong as that of Mr.. Baruch you woult
not have much trouble in this world,
said Senator Watson.
The President, in reply, paid a high
compliment to the entire staff of Amer
II want TO inform you, Mr. Presi
dent" Mr.. Watson said he told Mr.
Wilson, that | can not vote for this
treaty unless very definite and effect.
I've reservations are made which pro
tcct the interests of the United States.
The Indiana Senator said that he was
not in any sense an internationalist:
that he was a believer in nationalisn,
and especially the nationalism of the
United States. Referring to the Pres
ident's speech presenting the treaty OF
peace to the Senate, he sad
MIR. President, there was one sen.
tence IN your speech which just raised
rae up on tiptocs and aroused feel
ing OF the most intense opposition tr
your position That was the sentence
IN which you spoke of the necessit,
for entering this combination no mat,
ter what the cost might be in inde
pendent thought and action. That sen.
tcnce, in my opinion. Mr.. President
expressed clearly a doctrine of in.
ternationalism
President Wilson denied that he was
an internationalist and asked that Sen,
ator Watson not judge him by one SEN
tence.
You are such master of English. -
replied Watson, chat | assumed that
you used these words to mean what
they said"
The President laughinclv roioinn 4