The New York herald., 1921-10-23
COMING TO U. S. NEXT
Germans Hope to Obtain
$500,0O0,000 to Meet Rep
aratiOns in 1922.
IS YEAR TERN TO ISSUE
Money for Use in Germany,
Avoiding Purchase of For
eign Exchange.

Special Gable to THE NEW YORK HERALD
Copyright. 1891, by THE New YORK HERALD
New York Herald Burenu.
Berlih. Oct. 22.
The guiding hand in the negotiations
in connection with Germany's repara-
ton loan in England and America
may be Baron Anthony Rothschild Of
Rothschild & Co. Of London, who lef
Berlin after formal conference with
the German Government and leaders
In the German financial and industria
world. Baron Rothschild has returned
to London with the intention Of dis
| cussing the proposed German loan
| with the British Foreign Office, and
II his views are supported in Down
ing Street he will leave London i'm
mediately for America to negotiate
with financiers there.
Baron Rothschild's first conferencr
In Berlin was held a few days ago ~
the offices of Mendelssohn & Co. an
was attended by Chancellor Wirth, p
Friedrich Rosen. Foreign Ministe
Walter Rathenau. Minister Of Reccl
struction: Adolph Havenstein, pre-
dent of the Reichsbank: Herr Won
/ 'chwabach and others The following
day the consultation was continued in
Formally at the Foreign Office, the
same Ministers being present, together
with DR.. Sorge, representing the Ma
| ional League Of German Industry:
Hans kraemer of the National Econ
omic Parliament and others.
Loan for Long Term.
Care Is being taken in informed circles
| not to mention the sums discussed as
England's or Americas eventual quota
| Of the German loan but THE New York
HERALD correspondent here was given
| to understand that the figure Baron
| Rothschild suggested as Great Britains
possible share was satisfactory to the
Germans.
One OF the points discussed was the
amortization Of the loan. 1t was vir-
tually settled that the loan should ex-
tend over twenty-five or thirty years.
making the amortization at the rate of
| something above 3 per cent, which the
| Germans welcome. It is likely that the
! Germans will ask that they be free from
paying amortization for the first two or
three years.
Five hundred million dollars for rep
'rations will be needed the first year, of
which 100000, 900 will be needed on
January 15 and a second 800. 900 900
in April. and the Germans believe that
there are prospects Of the loan negota-
tons getting under way promptly to
raise these sums before they fall due
In so far as they are concerned they
fget no economic gain from the loan save
that IL will free the Government from
buying foreign exchange In the open
market. The money loaned to Germany
would be automatically transferred to
the reparation account and, as such
would not be spent I'm Germany. Baron
Rothschild was said to have expressed
satisfaction with the plan itself.
Further progres has been made in de.
veloping the loan plans for Germany.
The reparation committee OF the Ma
tiona1 Economic Parliament accepted
with only, one dissenting vote the pro-
posed law for the establishment Of a
producers loan society. A full session
Of the parliament is to debate the pro-
posed measure.
1t was said that Hugo SHINES, Ger
man Industrial leader. in a party caucus
spoke Of the Volkspartei German Peo-
pies party) entering a coalition with
DR.. Wirth as Chancellor or with the
Socialists as colleagues and also cx-
pressed doubts about the credit plan
Even since the plan was broached the
German steel king" has been known TO
favor II only under certain conditions
one being that the vokspartei be in the
Government and another that n salts
factory control be exercised by the Gov
ernment over the use OF the money
raised. The law as now formulated pro
vides for the exclusive use OF the money
borrowed to meet reparation payments
Socialist Support Expected.
That the Majority Socialists will sup.
port the loan was indicated in the
favorable comment recently by Vor-
,Uaerts, Majority Socialist organ. pro-
posing that labor should not obstruct
the measure. The Socialist theory for !
meeting the reparation. however. is that
the Government should tax gold values
but the measure with this In view In
troduced In the National Economic |
Parliament was promptly shelved on
behalf OF the greatly modified substi |
tute. This indicates that the opposition
to the Socialist solution OF the problem |
will be formidable.
Business lead ers here are disturbed
by messages from America that thf
press there is filed with sensational re.
ports that Germany is on the eve OF
bankruptcy. Secretary Schroeder of the
Finance Ministry made vigorous rep
resentation before members OF the
Guarantee Commission recently ano
showed how Germany would be crippled
II she lost the revenue now derived from
industries In Upper Slesia In territory
now ceded by the council of the League
of Nations to Poland
The Finance Ministry denies that
there is possibility OF a declaration
of bankruptcy by Germany or of a Ger
man collapse, and indicates that the
Industrial loan may go through even
If the Volkspartei remains out of the
coalition and In the face of the Upper
Silesian partition. They say that one
condition Is essential-that the economic
unity of the Industrial triangle be pre-
served for fifteen years. and they believe
this Is only possible II II Is enforced
by the Allies and is not left for Ger
many and Poland to negotiate.
There were great fluctuations In quo
! tations on foreign currencies yesterday
the dollar varying between las and 165
within few hours.
one reason for the rise in the value
Il % l.. .x.t.