The Washington herald., 1919-05-10
GERMANY NEEDS
FINANCIAL HELP
Must Have 1t to Pay Indem-
mites Of War, Says
Holland.
Thomas w. Lamont. of ]. p. Nor

Thomas W. Lamont, of ]. p. Nor
gan and Company; Bernard Ba-
ruch. representing the United
states. are reported as having been
In conference recently with some
of the German representatives who
are at Versailles awaiting consid-
GRAFTON of the peace treaty docu-
ment.
The presumption Is strong that
one of the purposes of the confer
ence was to obtain information re-
specting Germany's ability to pay
the Indemnity and the terms upon
which payment is to be made.
Very likely Mr.. Lamont and his
associates were aware that Great
Britain and France would be glad
to make such arrangement as
would fortify the German govern
ment with financial aid either for
indemnity purposes. or else enable
Germany to re-establish her indus
trial life.
The amount Of credit OF funds
which Germany would receive II
arrangements can be perfected, as
Great Britain and France hope it
can be. is reported to be 5000, ,O0O,-
900. But 1t all depends upon wheth-
er the United States is willing to
guarantee the bonds.
Certainly unless Mr.. Lamont has
changed his mind. he will not rec
ommend a financial proposition of
that kind; in fact will earnestly op-
pose II. Furthermore. the impress
sion among some of the bankers
who have been familiar with the
method by which credits have been
extended by the United States to
ha iSla W
made it lawful to extend these
credits. are convinced that Congress
could not be persuaded to authorize
the United States to put its guar
antee upon any issue OF this kind.
Nevertheless there may be another
way to aid Germany. Very likely.
by and by private capital in the
United States may be invested In Sc
curities issued by German corpora
tions and we'll guaranteed so that aid
may thereby be given to German
manufacturers and to the leaders in
public utilities.
-. For it Is essential that Germany be
/, in position TO earn the many billions
which she will be required to pay in
the way of indemnIties. She cannot
do that now, except in small part, and
very likely will be unable to liquidate
all her indemnity obligations within
a generations time.
Her Credit Is Poor.
One OF the obstacles. and perhaps
the chief obstacle, which must be
overcome IL the Germans are to re-
ceive financial aid from private cap
ital in the United States, Is the dis
trust OF the Germans and of their
sense of financial and business obli-
cations and the suspicion that many
of them are inclined to repudiate any
} agreement unless 1t be bound by Sc
curity which is ample.
. Already information comes from
over the sea that the American au-
. thorities have discovered. as have
the French. that machinery. in the
aggregate vast in amount. was taken
from Belgium and Northern France,
by the Germans while the war was In
. progress and even while the German
: armies were retreating across the
Rhine, and this machinery is now
/. being installed in German plants
This morning a communication
was received by an American manu-
featuring corporation which. of it,
self. furnishes a concrete example
III the methods employed by some.
at least. of the industrial leaders in
Germany whereby they can build up
their own industries by utilizing
machinery and equipment which
were taken by the German armies
from Industrial plants in Belgium
and Northern France.
Some years before the war began,
an Industrial plant was established
in Belgium. Its product was an
American invention. 1t was a sub
sidiary of the parent American or
ganizatiOn. The manufacture of this
American invented product was car
ried on with success.
The product itself found a very
favorable market in Germany and
Europe. As soon as possible after
the German armies entered Belgium.
this plant was seized. The product
was utilized by the Germans in lub-
ricating their aeroplanes. One of
these planes was brought down near
London and an expert examination
showed that the Germans were using
this product for their aeroplane lub-
rication.
After a while the Germans tore
all of the machiney out of the fac
tory and removed it to Germany,
where a plant was set up and the
and is still in progress.
The product was protected by
patents obtained by the American
corporation in Germany, as also was
the trademark. A new corporation
was organized under the title of
the Deutsche Old ag Fabrik.
stolen Machinery.
So il seems that this commodity,
established by American capital.
highly regarded in Germany. is now
being manufactured in Germany by
means of stolen machinery.
It is a clear case Of robbery, but
the establishment of the plant in
Germany and the utilization of
American machinery made It clear
that the Germans expected to find
a large market for this product.
At present no one can tell whether
the corporation will receive any re-
Enumeration on account OF this
stolen property.
This is only one instance of Ger
man methods. The American au-
= thorities are already in possession
of information which shows that
like methods have been adopted by
the Germans whereby new indus
ztrial plants have been established
sand operated by means of machinery
sand equipment which the Germans
stole from Belgium and France and
removed to Germany.
= Incidents Of this kind are so plentf-
full that the inevitable suspicion which
Involves German leaders may make
-it difficult for Germany to secure in
-the United States financial aid for the