New-York tribune., 1922-06-09
Bankers Expected 10 End
Conference in View Of
French Refusal to Let
Reparaiions BE Scaled
Decision May BE
Arrived AT To-day
Poincare Claim to Full
Payment of War Bill
Reiterated (; Wealth Of
TeutonsDeclaredAmplc
By Wilbur Forrest
Spscsoi CGbfe 10 The Tyibsrs

by WllDur Ofrcst
sr,cio' Cabie 10 The Tyibsss
Copyright. 1922 New York Tribune Tno
PARIS, June s.-Adjournment in-
definitely Of the committee Of inter-
national bankers meeting here 70
discuss a German loan appeared 20
be more than a possibility tonight
after a meeting Of the fnanciers, at
which they discussed the propriety
Of continuing their efforts in tho
face Of Frances fat refusal 20 con.
slider any reduction Of Germany's
debt 70 her.
The question before the bankers
hinged not 80 much on how the loan
could be arranged as on the advisa.
bility Of using the powers extended
10 them yesterday by the Reparstion
Commission, by a 3 to vote, per-
mitting them 10 consider a possible
reduction Of Germany's debt.
II was announced officially that ths
bankers had failed 10 come 70 any de-
clsion and would continue their dis.
eussiors tomorrow. The Tribune cor
respondent is informed that their taik
to-day centered IN tho issuance Of
statement declaring that the German
debt was too high. The bankers al
ready have agreed in principle that
there must be readjustmen, Of Ger
msny's obligations before loan can
be foated. Tho British member pro. 4
posed the statement, but both J p.
Morgan. OF New York. and Dr. G. Vis-
sering, Of the Netherlands Bank we're
unable 10 agree 70 putting the bankers
committee the on record They were
disposed 70 support Fiance's cOrffIf
ton that II the banke openly snam-
pioned the reduction of The German
debt, the Berlin government would
seize upon this for intensive propa'
gands in the hope Of escaping payment
rot only Of this years ins,allments on
the reparations bill. but eventually ell
obligations 10 the Allies.
France Objects 70 Program
Heavy pressure was brought 20 bssr
from French sources 70 prevent the
bankers from issuing such statement.
The French spokesman said that =,
combined with the inevitable misin-
terpretation abroad of Frances refusal
20 sanction a sealing down of the Ger
man debt, would put France IN a bad
light.
Frances view. the correspondent Is
informed, is that inasmuch as loan
for Germany is not possible without
reduction Of the German debt, and
France Is determined 20 block that un-
less the end can be achieved by bal
ancng the inter-Allied debts against
the German obligations. it would bo
better 20 adjourn all talk 81 loan
until the war debt situation has cleared
up. France can remain master of tho
situation because u requires unanl-
nous vote Of the ReParations Commits
sion 20 sanction any reduction OF the
German debt.
There is a certain amount Of assur-
ancc in French circles that an inter-
national conference competent 10 han.
die not only the war debt situation, but
also the reparstion and loan problems,
may be possible at Washington under
tho leadership Of President Harding
after the American fall elections are
over. In this connection. however, tho
French have a strong and well grounded
fear that strong pressure may be
brought on the Reparation Commission
TO grant Germany complete mora
torium on payments until the worlds
financial problems can be taken up a.
competent conference. j, would not
require a unanimous vote of the CONS
mission 20 grant moratorium.
Bankers Divided in Opinion
n was believed tonight that ths
bankers ~ their meeting tomorrow
would not take the responsibility OF
ignoring Frances attitude. To-day's
session found such a strong division 81
onir,on that il was thought likely tho
fnanciers would adjourn after issuing
an innocuous statement.
The Tribune correspondent sought q
straight and simple explanation in off,
cial circles to-day Of Frances stand on
German repsrations and its connection
with her own debts. The answer re-
ceived was this.
French public opinion viii not sane
tion further reduction Of the German
debt from what is considered the low
est possible level established by tho
London agreement. France does not
desire % resurrect continually the
story OF her suffering and sacrifice IN
the war, but she Is forced 20 remind
her allies and associates that she Is
unable 10 stand more. When the French
compare Germany with France 10 ts
impossible FOR them 20 appreciate the
worlds sentiment fsvoring further
escape for the Germans from their
obligations. The world looks AZ Ger-
man public finances but does not OBJ
serve the great wealth Of the German
people. Their taxes and budget are
absurdly out Of proportion 10 their
national wealth.
Fears Possible Bankruptcy
France h2s been forced 10 make
large internR loans for the reconstrue-
tion Of the devastated regions, and She
cannot continue this long without
going into bankruptcy. France be-
iieves that the debtor should pay and
she is willing 20 make payments on her
own debts. But she is not able 10 pay
when she does not have any money.
She will be able 90 pay only when the
money Is Forthcoming from those who
owe her.
"Some Americans do not appreciate
this situation and say that Franes
should pay. II is 10 Americas advsus
tage 10 help France collect from Ger