The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1922-05-26
CLAIM FRENCH
ARE TRADING
PREPARATIONS
Politicians Delaying Agree
ment Harding Aware Of
importance to Business Of
Early Settlement.
MAY ARRANGED LOAN
By MARK SULLIVAN


WASHINGTON, May 26.-Several
straws in the winds of the news sug-
gest that something may be stirring
shortly which may be of the highest
importance to the world. A little
while ago the American government
sent notes to all the European gov
ernments who owe money to America,
asking them in a polite way to come
around and do something about it.
Among the replies received and ac-
tions taken in response to this the
French announced they had appointed
a financial agent who would sail for
America on June Is. This week, how
ever, it is announced that the sailing
will be deferred. The significance of
this lies in the possibility of some
early action about the German repa-
rations.
German reparations is the center of
every consideration about the debts
due America from Europe and about
everything else in the world of pri-
vate and public business and finance
The French have always intended
to say, and still intend to say, that
they can't pay America any money
or make any definite promise of fu-
ture payment until they know what
they are going to get out of Ger
many.
Obstacle to U. S.
The amount of the German repara-
tions is the insuperable obstacle to
American collection of the money and
to the resumption of anything else in
the worlds business that is normal or
useful.
The fixing of the German repara-
tions is more important that anything
else in the economic world. 1t is as
important, or more important, to
America than to any other people
But congress in its jealously of the
president and secretary of state, has
forbidden them to take any official
step to solve the German reparations
problem without the approval of con
gress. 1t has been clear that. Harding
is keenly aware of the world impor-
tance of the German reparations, and
equally aware that his hands are tied
by congress.
In this state of affairs the leading
private banker in America, J. p Nor
gan, has gone to Paris, and is now sit
ting in conference of bankers consid-
ering a German loan Mr. Morgan is
acting unofficially, but any one ia
maliar with the way of such things
must know that Mr.. Morgan would not
do what he is now doing without some
sort of informal sanction from bis
government
May Arrange Loan.
1t seems possible than some kind O.
permanent fixing of the German re
parationS may now be under way anC
that, in addition. Mr. Morgan, on be
half of American private bankers
may arrange for loan to Germany
directly, or indirectly, to take care o
some of the early installments of re
arranged schedule of reparations.
this should be done, it will open tn,
way not only for the settlement of tn,
debts due America, but also for tn,
stabilizing of exchange and everything
else that stands in the way of the re
sumption of international trade on
normal basis.
Probably his outcome should no
be anticipated with too confident hope
The politicians who are in power il
France, are in this case, as they wer,
at the Washington conference. in
mood that does not promise helpful
ness. Some of these politicians don
really want the German reparation
fixed. They want to keep German,
under a permanent mortgage. The,
want the continuing power to holt
Germany down in an economic as wei
as in a political and military sense
They want the amount of the German
reparations undetermined so tha
whenever Germany gets anything
ahead they can go in and take il
They want the same leverage on Gel
many that the English landlord use,
TO have on the Irish tenant-farmel
Whenever the farmer made any in
provements on the farm, the landlor
raised the rent.
Service of the Devil.
In an economic sense, this is a
ideal service of the devil 1t puts
! premium on sloth and penalties il
1ustry and thrift AS between Franc
and Germany, it would be an into
lerable thing for the world if thi
condition were to endure into the il
definite future. 1t could not possibl
last But France, in its easily unde
standable postwar hysteria. sees thi
as a sure device for permanent pr
lection not only against German a.
gression, but against German comp
tition in trade Moreover, the FrenC
politicians know that America and th
rest of the world want the Germa
reparations fixed and out of the wa
They think they can demand gre;
eXactions from America as the priC
of assent to the fixing of Teparation
Among the other evidences of France
disposition to act in trading spir1
is the disturbing and not generally re
ogniZed fact that France has not ye
after all, taken any action toward ra
.ying the naval armament teraty
any of the treaties arising out of Il
Washington conference.
Copyright 1922 by the New York
Evening Post, Inc.
FoiLs In Moue to HaUe