The New York herald., 1921-02-03
PREPARATIONS TO WAIT
Britain's Renewal Of Offer
to Waive Reopens Entire
Discussion.
SAYS PARIS CAN'T PAY
London Financier Quoted as
Saying Also That Britain
Will Not.
BY LAURENCE HILLS.


Special Gable to THE New YORK HE.ALp.
Copyright, 1921, by THE New YORK HERALD.
New York Herald Bureau,
Paris, Feb. 2.
Renewal by Premier Lloyd George
of his assurance that Great Britain
was ready to waive her allied loans if
the United States would do likewise
has opened wide the throttle Of dis
cussion here OF the interalhed debt
question which is taking several new
turns. In lieu Of the total debt Can
collation. idea, which is being more
seriously considered than it ever was,
comes the suggestion that the allied
war debts be liquidated as soon as
possible at the rate Of exchange at
which they were negotiated during the
war. This is the opinion of the Com
merce Committee of the French Par
Lament, which has been discussing
the German reparations plan, but
without arousing any amount OF en-
thusiasm for what Premiers Lloyd
George and BRAND believed would be
hailed with delight by American
bankers as giving something substan-
tial on which to base international
financial deals.
The parliamentary committee COM
prises leaders of both the French Senate
and Chamber of Deputies and is utterly
opposed to any final settlement or Ger
many's reparations payments until the
outcome of the interallied war debt nego-
tiations Is known. insisting. moreover,
on the necessity for the Allies getting
guarantees more substantial than thoee
provided by the Lloyd George-Briand
accord in so far as German reparations
payments are concerned. this apparently
being an effort to strengthen the allied
position that Germany cannot negotiate
any loans in the United States without
allied consent and under the assurance
that the Allies will have a first lien on
all German resources until the last
penny of the Versailles treaty Obligations
is paid.
Economic Revolution.
To arrange tlse German PREPARATIONS
settlements WITHOUT taking into consid-
Grafton the prQ 4m of the allied war
debts would ityS asserted. result In an
economic revolution which might even
reverse the world positions and cause
the collapse OF france.
The committee has tackled the ques-
ton of currency imitation, and is propos-
ing that all the allied Governments re-
frain from further emissions which are
not covered directly by commercial guar
antees, this being contrary to the view
held until recently by Louis Loucheur.
Minister of the Liberated Regions, that
the French currency imitation was not
serious and that the work or reconstruc-
ton In the devastated regions should be
continued even If it required the run
ming of the Treasurys printing presses
day and night in turning out bank notes.
"The financial aid of our allies is IN
dispensable." the committee declares.
However, 1t can only be effective
through credits between Governments,
for there is not banker in the world
whose solvency is sufficient TO meet ou~
dit needs"
British View Quoted.
The journals London correspondent
interviewed person whom he describes
AS "Britain's greatest financier." quot
ing this authority as saying regarding
the American loans and Lord Chalmers
coming mission to the United States:
These loans (made by America TO
Great Britain) will not be paid either BY
YOU or by us or by anybody. From this
money we have borrowed from America
we have not profited. We loaned somo
of IL 60 Italy and much Of II to France.
"And why did France need IL? Be
cause YOU had 100000 men In the
trenches. while America, as well as Eng
iand--but to less degree-were able
to continue work.
"What you expect us TO ask for pay
ment for the uniforms wherein your
valiant soldiers went to meet death?'
The British, continues this financier,
realize that France cannot pay.
Asked whether the French could nego-
tiate their German paper In the United
states he is quoted as saying he be-
jieves il impossible. adding;
"I repeat. each country must pay fare
well to its loans"
AS a first step toward mobilizing what
Germany owes France a group of Social
list Deputies have filed a bill providing
for an issue by the Bank of France OF
$50 900 .O00, 900 francs in new bank notes
secured by the German reparations,
these TO be used in the devastated re-
gions in the rebuilding work. for the re-
payment Of the national defence bonds
and for the amortization OF outstanding
,otfaoaf lao ne v-hara tho natioua cx-