The New York herald., 1921-04-24
President Probably WILDE
eide Tomorrow Whether
They Warrant Forward
ing to Allies.
CASH OFFER is RAISED
1t Is Still Less Than En-
tente Demands--Inter-
national Appraisal
Board Urged.
TO FIX ANNUAL PAYMENTS
Washington Optimistic Over
Developments-Groundwork
for Arbitration Laid
SHINES Loses Power.
70 FIX ANNUAL PAYMENTS
Special Despatch TO THE NEW YORK HERALp.
New York Herald Bureau.
Washington. ID. C.. ADriI 81. I

Special Despatch TO THE NEW YORK HEnALp.
New York Herald Bureau.
Washington, ID. C.. April 81.
Germany's new proposals are III the
hands OF President Harding and Sec
retary Hughes, who are studying
them TO see If they are Of such ma
ture as would warrant their transmits
sion by the United States Government
TO the governments of the Allies.
Rigid secrecy Is maintained at the
White House and the State Depart
ment regarding the terms that Ger
many now offers, but 1t Is understood
that the three principal points are:
]. Germany offers cash repara-
ton considerably larger than the
sum she has hitherto put forward,
but still far less than the Allies
demand.
2. The request Is made that the
annual payment be fixed by IAN
international appraisal board on
a sliding scale, the board to take
into consideration the variable
quantity of German productiveness
and prosperity.
3. A proposition to rehabilitate
the war wrecked districts of
France by the use Of German labor
and German materials, the cost OF
the restoration TO be credited to
Germany in the general indemnity.
Harding ConsuIts Lodge.
Both the President and Mr. Hughes
denied themselves to callers this
afternoon. 1t was understood that
late In the day the President was In
communication with Senator Lodge
The reply OF the United States TO
the new German note will be shown
to the allied Ambassadors in Wash
ington before 1t will be forwarded to
Berlin.
It IS expected the Administration
may be ready on Monday to say If the
proposals appear reasonable enough
TO warrant mediation by the United
States-mediation in the sense Of for
wsrding the proposals with a polite in
ernment they form a possible basis for
fresh negotiations between the Allies
and Germany. That is precisely what
President Harding has offered to do IL
Germany will furnish him with the
right sort of material--with proposals
that are liberal enough and fair enough
TO At Germany's war guilt.
President Harding and his Secretary
of State have laid the groundwork for
arbitration itself If It will he agree
able to the Allies as well as TO Ger
many 10 havo the United States hold
tho scales. In no case, IL can be stated,
will the United States at this juncture
go further than transmission OF the
German proposals with possibly a
recommendation that they be consid-
cred carefully. But the way will be
opened. If this action shall be taken.
for much broader and more definite in
tervention by this Government.
Feeling Of Optimism.
There is a distinct impression here
tonight that there is at least possi-
bility Of the reparations controversy
being adjusted through the good Offices
of the United States. There is a gem
eral feeling Of optimism in official cir
cles, belief that tho mere hint given
out by our Government that Il be-
lieved new conference on reparations
might be held II Germany would sub
init terms possible for a basis Of ne
gotistions has had It's effect on both
the British ana French governments.
Material comes out Of Germany TO
support the belief that the reparations
controversy Is In the peaceable adjust
ment stage. IL Is understood that tho
State Department has heard from it's
agents in Berlin that the truculent and
powerful Hugo SHINES, whose colossal
wealth and industrial power are the
greatest single economic factor in the
Germany OF to-day. Is losing his grip
on the German Government. The de-
fant stand taken by the Germans
about reparations and war guilt was
taken az Stinnes's insistence. For two
years he has dominated not only Ger
man industry and finance but German
policy. Now the word comes to our
Government that SHINES has been put
to ono side by the German Chancellor
and Foreign Minister, who seem, II
Is said here TO have arrived at a truer
estimate Of Germany's impossible posi-
ton than they had reached hitherto.
There was also an intimation from
Berlin to our Government that In franz
Ing The now proposals Germany under
stood clearly that u would be a waste
of time to jockey with President Har-
ding and Secretary Hughes. that II