Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1922-04-19
TO ASK AID OF
MORGAN IN LOAN
TO GERM AN Y
Preparations Commits
sion Asks Banking
House Join Farley
Request May Lead to Important
Decisions by U. S. Banker
and Govt. in German Re-
habitation-Federal Officials
Heretofore Silent on Cues
ton of Loan

Paris, April 1S.-(By A. P) The
Allied reparations commission, it
was announced today, has asked J. P.
Morgan & Company to accept mem
bcrship on the financial sub commits
sion which will convene in Paris in a
fortnight to consider the possibility
of floating an international loan for
Germany.
The commission. it is stated, is
particularly anxious to have j. L.
Morgan act personally, but would
welcome any member of his firm.
The sub commission as now made
up is composed of Former Premier
Delacroix, of Belgium, chairman;
Signor Damelio of Italy, vice chair
man, Karl Bergman. Germany: Sir
Robert kindersley, Great Britain:
Charles Sergent, France; DIR. G.
Nisherng, Holland.
Washington, April 1S.-The re-
quest Of the Allied reparation COM
mission for cooperation from the
American banking house of ]. p.
Morgan in considering an interna-
tional loan to Germany may lead to
important decisions both by Ameri-
can bankers and the American gov
eminent in regard to the general
! scheme of German rehabilitation.
! hltbntol, bo
cepts membership on the financial
sub commission at Paris, presum-
ably would be vested with no power
to commit in any way the United
States government officials here, it is
believed, undoubtedly would be
! closely in touch with the problem
/ under discussion and would make
| their influence felt in the ultimate re-
habitulation plan.
On the specific question of a loan
! to Germany, the American State
| Department never has indicated its
attitude, nor We're officials willing to
! discuss the subject tonight in the
absence Of official information.
! No disposition has been apparent
however, to place obstacles in the
way of the suggested formation of
/ an international consortium of bank
ors for floating such a loan as pri-
vate investment wholly independent
Of governmental participation.
Regarding the broader proposition
| Of foreign loans generally the de
| partmont has taken the position re-
peatedly that such proposals should
! iii all cases be submitted to Wash
! ington before consumption. In a
/ formal department statement issued
] on March 8, last, the undesirability
or throwing foreign loan securities on
! the market promscously was dis
! cussed in detail and the attitude Of
! the department was summed up in
| this way:
! The department Of state cannot.
| of course, require American bankers
! to consult it, 1t will not pass on the
merits of foreign loans as business
! propositions nor assume any respon-
! sibilitv whatever in connection with
loan transactions. Offers for foreign
loans should not. therefor. state or
imply that they are contingent upon
an expression from the department
OF state regarding them nor shonld
any prospectus or contract refer to
the attitude to this government.
"The department believes that in
view of the possible national inter
ests involved it should have the OBJ
portunity of saying to the under
writers concerned, should it appear
advisable to do SO, that there is OF
is not objection to any particular IS