The New York herald., 1921-12-13

New York Herald Bureau.
Paris, Dec. L.
IF President Harding can see his
way clear TO initiate financial con-
ference on either side of the Atlantic
for the settlement OF the constant
Franco British disputes over German
ceptance just as prompt as in the case
of the disarmament task.
In fact, the possibility Of President
Harding calling such a conference as
the next step in his association of big
nations is engrossing both the French
press and political circles here, and
especially because of the rumors
reaching here from London that indi-
cate the British Prime Minister, Mr..
Lloyd George, intends to go to Wash
ington at the end Of this month after
he has talked with Premier BRAND
One report says that following the
conference the two Premiers may go
10 Washington together to participate
in discussion on world finances.
While these may be merely the usual
British type Of ballons d'essoi sent up to
see which way the wind is blowing the
French arc confident that little head
way can be made unless existing con-
dltions change. for two reasons:
First-The British idea of a morato-
rum to which Mr.. Lloyd George is un-
derstood to still be clinging cannot be
realized, as Belgium intends to remain
yXft Epnr nrlnA tn, cty1er
rangement which would not provide for
her priorities.
Second--It is considered futile to talk
about great international loan to help
Germany pay unless the United States
joins in it. Therefore It Is considered
more likely that the conversations be-
tween Mr.. Lloyd George and NJ. BRAND
next week will merely prolong the status
quo until British influence can be ex-
crted in Washington to have interna-
uonai experts. politicians and financiers
seek solution of the problem under
President Hardings auspices
Europe Favored for Farley.
Whether such an arrangement would
necessitate Mr.. Lloyd George crossing
tho Atlantic remains TO be seen. but inn
rortant French officials suggest that tne
trip might be useful in bringing the next
conference to this side of the Atlantic.
where all the evidence gathered during
the last three years regarding Germanys
ability to pay could be placed on n con-
terence table on a few hours notice
The Temps tonight gives the outlines
OF a settlement which 1t is believed hera
would be workable, but which would de-
pend largely on American cooperation to
tho fullest extent. as :he United States
is the worlds greatest capital reserve
hic rHlny .sll.
several months ago. would provide f.r
an abridged form of .;.oratorium for
certoin cash payments Until such time
as .he mark has a stable value to be
fixed, for instance. IT one American
cent.
simultaneously Germany. the Allies
and the United States. would, of course
bend all their efforts toward floating
billion dollar international German
first mortgage loan," with ell of Ger
nsany's resources as security and paying
an interest rate OF z per cent, the loan
TO be amortized in fifty years. The
issue would be delivered to an interna-
tional bankers consortium at, say, 95,
the consortium to be expected to find
takers and to pay Germany's debts in
quarterly instalments Of half billion
marks during the next two years.
BY Germany pledging herself not to
tax such an issue and also permit q
neutral delegate to see the guarantees
fully carried out. the Temps believes the
loan would be attractive to the Allies
and 10 neutrals and even to German in
dustrialists, who have succeeded in send
Ing fortunes out of Germany and are
now holding foreign currencies and Sc
curities. The latter would have their
coupons paid in dollars free OF all
charges. while Germany herself would
he merely required to find S72.000,000
yearly to meet her obligations.
while these ideas are, as yet, not
perfected" says the Temps. they may
inspire those who are holding great
reserves of capital to assume risks in
Its operation. The mechanism of credit
resembles q motor---sone one must
start il. Can any one who is able to
furnish the initial clan which will put
into operation all the worlds affairs
take the responsibility of saying NO"
Rene Daral. writing in the Journal,
also stresses the American opportunity.
"Just as It is necessary for France TO
hold out until she has regained her
financial balance, o. method must be
discovered which will enable Germany
10 pay her debt without sacrificing or
diminishing Frances claims" he says.
1T Is a delicate puzzle which will de-
niand all the genius of the London
SDOhtfIIieT.
But above all. IN order that any ac-
ccptable solution may be evolved IL is
essential for America to intervene. The
Pacific agreement is good augury IL
ia the beginning of the association of
nations which inevitably must develop.
Therefore why not get together on eco
nomic and financial questions which
which dominate the problems of a dur
able peace?'
The Ltbcrte doubts that London alone
viii be able TO solve the problem. de-
cIaring that France cannot grant any
concessions to Germany, and shrewdly
comments:
"'rhey are approaching the United
States on the question at the very mo-
nsnt the United states announces 1t will
not renounce any of its claims on the
Allics. We cannot blame them. II is
rrcof that care OF the general interest
does not include care Of particular In
trcsts. But It Is curious that we arc in
vtod to study now reductions in our
just claims on Germany Just whon
America cncrgctically maintains thosc
which she has against ue.'
II L.