The Sun and the New York herald., 1920-05-14
.lVO GERMAN CASH,
NO GERMAN LOAN
------------------
Gloomy Outlook for Interna-
tiOnal Financial Arrange
ments at Spa.
posrpONEMENT rs LIKELY
----------------- ANY Z
League Council Meeting Also
Probably Will Wait for
German Elections.
posTpoNEMENT IS LIKELY

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ISNpoN, May is.--Premier Lloyd
osorre will have gloomy picture Of
International finances to present to Pre-
r,ler Minerand when they meet at Folk
Stone saturday. According to best In
formed British financial opinion the pre-
pmInary talks and even the Spa confer
once itself will be unable to settle more
than the lines OF a general compromises
bstween the urgent necessities Of France
and the other allied Powers. tho cold
facts Of the case demonstrating that
neither cash can be collected from Ger
many nor loans raised.
In informed circles in London II ~
held that no allied Government can un-
dor any circumstances raise further
loans, hence this task has been passed
on 10 the Council OF the League Of
Nations, which will meet with private
,nanciers in Brussels. AS this Brussels
meeting is dependent on the results Of
tbA Spa conference, which now appears
likely 10 be put off until after the Ger
man election, It was announced here to-
day that it probably would be postponed
until some time late next month.
PremIern 10 Confer To-day.
Dispatches from Paris to-day said that
Premier Millerand would leave there to-
morrow for Folkstone and that 1t was
expected that the conference there would
last no longer than two days. The French
Premier will return TO Paris In time to
sddress the Chamber of Deputies on
Tnesday on his Governments proposed
action against the French General Fed
Grafton OF Labor.
The League Of Nations has received
po official reilly from the United states.
either from the Washington Government
or the Chamber Of Commerce 20 the In
yitatIon to send representatives 10 the
BRUSSELS meeting.
British officials display the keenest
aupreciation OF the French difficulties
and are prepared to yield to France
everything possible. However, they in
sist that neither England nor any other
Power can perform the impossible.
Frankly. they do not see a possibility Of
meeting the French requisites this year.
II was pointed out that the French
budget provides 53.000.000.000 francs
in expenditures, as against 20.0OO.OOO.-
900 francs In revenue. The French
budget sets down against deficit OF
$4,000. 900 900 francs the sum OF 20.-
OOOoOO,O00 francs to be collected from
Germany.
No Chance of COllectlnE.
Important financial experts here not
only see no possibility OF collecting such
a sum from Germany this year. but even
II It was collected II would be for divi-
sion among the allies, with due consid-
Grafton Of Belgium's priority claim for
10000, 900, 900 francs. This 10000. .000.-
900 francs payment ls the outside figure
as yet considered as the fixed yearly
ieparation payment by Germany. al
though this sum may be increased later
on in proportion to Germany's pros
perlty.
On the other hand, the ships, coal and
chemicals delivered to the allies by Ger
many are to be credited against this
sum in the first year. but even then II
Is not considered probable that Germany
will be able to pay the balance de-
manded OF her.
In other words. both France and Ger
many will be forced TO seek loans to
meet their pressing necessities this year
and the financiers who will meet in
4. n.t,M a. Anss
1t was pointed out here to-day that
any country which now attempts to
make such an International loan would
be forced to fall back upon a new In.
fation Of her own currency and at a
time when every Government In the
world Is striving to its utmost In ex-
actly a contrary direction TO this.
One possibility OF partial relief. how
ever is seen in the heavy liquidation of
old time international securities. which
already are feature OF the London
market, where French Austrian, Ger
man and other Continental holders OF
South American and Chinese Govern
ment issues and OF Industrial and public
utility securities are disposing Of them
for certificates OF sterling exchange.
But even this Is recognized as only q
drop in the bucket.
Nations Must EconOmiEe.
There is every reason to believe that
French officials appreciate the necessary
difficulties Of the situation. and that
Premier Millerand Is coming to Folke-
stone genuinely disposed to do his ut
most TO agree to the beat compromise
that is suggested.
1t is believed here that Premier Mile
rand has already suggested TO Premier
Lloyd George that as soon as the present
Industrial row is Strengthened out that
the banning Of luxury imports be fol~
lowed by similar restrictive measures
to reduce French expectations and 70
Increase home production.
In connection with the German pay
ment Of part Of the reparatlone In
Sind--that Is. ship for every ship sunk
by the German submarines, &c.--it was
declared here that this will seriously
affect both the United States and Brazil.
as both America and Brasil took over 4
large tonnage OF German ships when
Ahey declared war. Under the terms
OF the peace treaty these vessels must
De pooled as a part Of the reparations
and allotted TO each Of the Allies accord
ing to their losses. Until America rati-
nes the peace treaty the German ships
IN her possession cannot be touched by
the Reparations Commission. When It
was reported that the United States
might insist on keeping her prizes war
gTiEsled British oficial remarked:
AS recall. II was fear OF a certain
panic stricken. rep tape bound navy
mat drove these German ships into