The New York herald., 1921-12-03
SEE NO MORATORIUM
WITHOUT PAYMENT
January Reparations Must
Be Met First, Berlin
Officials Feel.

BERLIN, Dec. (Associated Press) -
Official quarters continue their secre-
tiveness when asked concerning the
Governments activities through DR..
Walter Rathenau in London and others
in connection with the fiotation of a
loan or obtaining a moratorium. That a
moratorium will only become an active
ment has been met is accepted as OBJ
vious both in Government and financial
circles. although it is pointed out that
a positive guarantee of a moratorium
subsequent to the January payment
would considerably facilitate the raising
OF the 100000, 900 gold marks due next
month.
Meanwhile the Reichsbank seems to be
the sole beneficiary of the marks i'm
provement and Is gathering In all the
Loose foreign exchange in sight and the
Government is sanguine that the neces-
sary sum for the reparations payment
will be ready for transfer on the ap-
pointed day, regardless of the progress
or the failure of the negotiations in Lon
don and elsewhere for long time credit.
Some of the more cautious financial
writer's warn the public not to overlook
given to DIR. Rathenau in London the
question of modifying the reparations
programme must be referred to the
Preparations Commission in Paris for
its final verdict.
Complications I'm Moratorium.
Berlin financiers express the opinion
that moratorium or long time loan
would be beset with numerous compli-
cations for Germany and would not
prove to be the complete blessing that
has been suggested. In the event that
Germany was granted q three year
moratorium the experts predict that she
would have to provide France with an
international credit to enable her to
keep up the French budget, which is
based on the present reparations terms,
balanced during the period the mora
torium Is in effect. This. the experts
say. suggests as one of the complica-
tions the question. "Who would pay the
interest on such a loan?"
The bankers and financial writer's are
not inclined TO accept the present i'm
provement of the mark as an occasion
for optimism. They assert that the re-
ports received from London and Paris
do not warrant the assumption that
Germany VIII De VI WI AO-
ceive financial relief in the near future.
Foreign exchange to-day recovered
substantially from the slump caused by
the panlcky unloading of Thursday. and
the feeling prevails that the furry was
only a one day affair. The Bourse was
not in session to-day.
stage Fright Caused slump.
Thursdays excitement is ascribed in
q large measure TO a bad case OF stage
fright" on the part OF amateur specula-
tors Bankers claim that the sensa-
tional drop of several hundred points in
leading Industrial. commercial and ship
ping stocks was wholly out OF propor-
ton to their intrinsic values.
The furry has resulted In an ener-
getic demand for measures which will
be calculated to wipe out the small spec
ulator. who in some circles Is not only
viewed as a nuisance in the nations
present hectic financial situation but
considered n serious menace, IL being
claimed that the slightest political provo
cation sufflces to stampede the man or
woman taking an initial hler In spec
ulation.
Yesterdays upset was disastrous to
numerous small provincial banks which
were unable TO reach Bourse centres In
time to cover themselves. The policy of
restricting official trading to two days
a week Is blamed In some quarters for
the congestion on the Bourse and in
banks and brokers' Offices