The New York herald., 1922-12-17
Moratorium; Fixed Sum;
Supervision; British CAN
collation.; U. s. Sharing.
BUSINESS OR .BAYONETS'
London Sunday Times Cites
Reasons Why the Former
Will Prevail.

Special Cable to TIE New YORK HERALD.
Copyright, 1899. by The New YoRK HERALD
New York Herald Bureau.
London. Dec. 10.
when fate trembles perilously in
the balance it is absolutely in the
power Of America to turn the scales.
1t would be a real beginning Of the
worlds redemption. after four years
Of making chaos and calling It peace"
James Garvin will say in to-morrow's
Observer, thus summing up British
opinion of the news Of President Har-
ding's determination to extend a help
ing hand to Europe.
No word has been officially received
here of Americas intention or the de-
tails of the loan proposal, and official
comment remains most guarded. The
Weekly Despatch uses the headline,
f"f375. 100000 Secret" and asserts that
Ambassador Harvey himself knows
not word of the Washington plans.
The Sunday Times, in a header. head
ed, BUSINESS or Bayonets.' cites three
good signs that~iu will be the former
The first sign is the milder tone OF
France second, American Intervention.
and. third, the actual German offer made
for settlement. 1t should be emphasized
however. that there is a tendency In
some quarters to believe that American
intervention will mean halting the
pendulum in Europe. The diplomatic
correspondent of the Observer, for In
stance revives the old theory that Great
Britain borrowed from America really In
behalf Of the other allies. and places the
cancellation or holding down of inter-
allied debts, including that due America.
before settlement Of the reparations mud
die.
Garvin halls American Intervention,
taking Mr.. Harvey. cramned with Eu-
ropean information. and Stanley Bald
win. Chancellor of the Exchequer both
to Washington, as sure to have a good
effect in America. lie adds that the
worlds fate may be decided between
Paris and Washington during the first
few days of January. He lays down
five conditions. however. without which
American intervention, no matter how
generous, would be futile.
We have never had the least belief
that under anything like the present
conditions loan of magnitude could be
raised either In the American or any
ether market. DIR. Rathenau was under
an utter delusion in obstinately imagin-
ing the contrary. What investor In the
world would advance money upon moth
ing but chaos as collateral security?
Chaos itself must be brought to some
shape Of order"
Five Conditions Proposed.
Mr.. Garvine five conditions are:
First-A conditional moratorium, not
longer than two years.
Second--Germany will have to agree.
to pay ultimately the irreducible total
of $4,000. 000, 900. which. heavy as this is,
would make Germany's burden lighter
than Britain's, charged as Britain Is
with the debt to America. A reduction
of indemnity would have TO be secured
by portion Of both import and export
German customs receipts.
Third-In return fon final settlement
though on no other terms--England
would set an example by canceling as
large a portion Of her war debts as is
consistent with the pressure created by
paying America.
Fourth--Efficient supervision of gov
ernmental finances by an international
body till Germany begins to pay. France.
meanwhile. not to be asked to relax her
grip on the Rhine. but forced to promise
not TO tighten 1t.
Fifth-America's share going first to.
Germany. but really to France.
Would Improve Trade.
Summing up Garvin says OF the pro-
posed loan: ut woul0 notably i'm
prove conditions OF our own finance and
trade. IL would interest neutral as well
as allied Governments to support and
guarantee IL in various proportions 1t
would be well worth the while for the
United States to participate but the
vital condition, we repeat. would have
to be that of final settlement-based
upon scaling down the Allies demands
upon Germany to an irreducible mini
mum OF e. 1000, 600. while France would
bind herself not to extend the area of
occupation, or change her status in the
Rhineland I'm any way. without the con-
sent of the Allies and America.
II believe that on those terms Amer
lea would act. that her action would
be Invaluable to the world: that II
would bring even more credit TO Har-
ding's Administration than accrued from
the Washington conference. and that
in such n cause the moral gain to the
~. - H. n n