The New York herald., 1921-12-09
" go. tsA- III =
MORATORIUM NOW
TOSAVE GERMANY
LOucheur and Rathenau Con-
fer With British Chan
cellor of Exchequer.
TO CHECK FALL OF MARK
Plan Does Not Refer to Janu-
airy Reparations, Which
Will Be Met.
TO CHECK FALL OF MARK
Specigt Cobfe to. THE New YosK HERALD.
Copyright, 1891, by THE New York HrxALp.

Specigt Cobie to. TIE New York HEHALD.
Copyright, 1891, by THE New York HrxALp.
New York Herald Bureau.
London, Dec. B.
Louis Loucheur. French Minister OF
Reconstruction. is at Chequers. the coun-
try home OF Mr. Lloyd George, tonight
comforting with. the Prime Minister on
the grave position OF Germany's repara-
tions payments and particularly on the
proposed moratorium which in semi
official Circles is now regarded as prac-
tically certain Of being carried out.
1t is enthusiastically estimated In rfinan-
cial circles hera that the conference will
bring decisions which will check the
falling mark and will open a way for
the joint tachl.ng of the currency prob
lem.
DR.. walter Rathenau, former German
Minister OF Reconstruction, who post
poned his return to Germany when he
learned that Loucheur was coming to
london, now expects soon to be able to
return with the assurance that mora
torium will be granted. In this event
Z h4 will again enter the Ministry of Re-
construction. which will be a signal for
a boom in industrial intercourse.
Loucheur this afternoon had long
consultation with Sir Robert Horne.
alaneellor Of the Exchequer, who has
Sohversed several times with DIR. Ratne-
fa'u. It is reported, that Loucheur ard
3athenau will confer In the next day
or two in regard to the moratorium and
viii discuss further points Of the Wies-
baden agreement.
Allied financial experts are reported
already to have come to the conclusion
4hat the economic and financial position
OF the nations demanded a moratorium,
and that the preliminaries which have
been outlined await only the approval OF
lloyd George and Loucheur. A high au-
thority in discussing the question to-day
aaid: aHE. srs
IF a moratorium Is declared Germany
will be under no necessity to buy either
american dollars or British currency. It
is the compulsory buying of these that
has caused the extraordinary deprecia-
tion in the mark, and the Immediate re-
suit of the moratorium will be gradual
Improvement. 1t Is also of great impor-
tance because we would be able to pay
money to Germany for goods purchased
instead OF Germany owing money to U.S."
There is no suggestion that Germany
would be relieved OF her obligations In
respect to the January reparations pay
rnents. These will probably be met now.
ns German circles here expect that the
likelihood of a moratorium will enable
the German Government to borrow n
sufficient amount to make up the pres
ent deficit in Berlin.
The worst bank failure in Germany
in twenty years--that of the Pfaeli-
zische Bank of Ludwlgshaven-kept rne
stock market here In suspense to-day
and. while prompt salvage action by the
Deutsche Bank and the Rheinische
Credit Bank had a quieting influence. it
was assumed that the misfortunes of
one institution Dresaged others.
The entirecapital md reserves of the
Pfae!tzische Bank we're lost by foreign
exchange speculation undertaken in the
Munich branch without authority of the
central office. The failure did not cause
BLACK Thursday" but it was due to
short selling previously. 1t Is likely
there will be no private losses in con-
nection with the failure.