The Washington herald., 1922-05-30
Promise of Financial Re
form Regarded as
Satisfactory.
BANKERS STUDYING
LOAN PROSPECTS
u. s. Delegates Examine
Reply With Repara-
tions Delegates.

PARIS. May as.-The German ae-
ceptance Of the demands OF the rep
srations commission for the reform
OF German finances was received
by the reparstions commission this
afternoon.
The note consists Of six typed
pages and an annex of eight pages
In German with French translation.
The reparations delegates spent SIX
hours comparing the texts and also
comparing the official German text
with the informal ofer made last
week by Herr Hermes. the German
financial minister, without quite
reaching the end
The American delegates actively
participated. studying and discuss
ing the slight variance in the I~o
texts. although they have no vote
and are only permitted to speak
by courtesy.
Note Deemed Satisfactory.
The German note is satisfactory
as a whole and certainly will siae-
track the May 81 crisis. The Berlin
government fully assumes that the
international loan will be fiCsted
for its benefit. but does not maze
this an absolute condition for ac-
cepting the demands for financial
reform. Berlin, however. also makes
dire prophecies. which are an old
scng.
Particularly. Berlin says that IL
is banking on a part Of the interna-
tional loan for cash reparatIons Tor
370,0eo.oO0 gold marks Gs2.5 .5VU. .00JD
for the remainder Of the year and
wishes to print sufficient paper 20
cover the payments IL the loan fails
or Is not floatej quickly. This mat
ter can easily be settled later II
any difficulty should arise.
VIII Meet Again Today.
The repsrations commission viii
meet again tomorrow 10 nnish It's
study Of the German note and IL also
Will meet on "Wednesday. II probably
will decide Wednesday that the
German reply is satisfactory and
will wind up its business
With German promises for imam
cial reform in the hands Of the COM
mission. the ground is well cleared
for the international bankers COM
mittee to begin the study of pros
poets for an international loan 20
Germany.
J. p. Morgan and his assist
ant. George Whitney. have had many
informal conversations with other
bankers since the adjournment OF
the committee last Friday. Tomor-
row he will attend the ceremonies
at Suresnes. where Maj. willard
Straight, formerly Mr.. Morgan's as-
sociate, is buried.
The question who will buy 81 ,0oO.-
100000 worth of German bonds.
guaranteed only by German faith.
is one OF the great problems IN
connection with the loan.
Interest Rate Low.
Why should the small American
investor buy these. bonds that will
certainly not pay more than six or
seven per cent?" an influential
banker asked today. And il. the
finest army in Europe could not
guarantee for France regular pay
ments of reparations how VIA rone
or a million Americans be assured
Of their interest and principal from
Germany for some years?'
The banker confirmed state
ment that the interest would be
comparatively low. that there would
he no element of speculation in the
purchase of the bonds or that the
question Of satisfactory guarantees
is difficult
The loan will be based on German
gold marks and the rates Of CON
version from the present paper cur
renices OF Europe will be another
puzzling problem. The marx touched
four centimes on the Paris BOurse
today. the highest point in several
months