New-York tribune., 1922-12-16
Bankers Here
Deny Planning
German Loan
New York Houses Are Not
Concerned in Any Prof.
ecs Rumorcd, Survey Of
the Institutions Indicates
Is Not Europe's Solution
Plan Called Probably Futile
and Not Feasible, Though
sae Time Yet May Come

,. p. Morgan 4 Co. Is not concerned
ss present N any German losn project
noi Il any other Of the leadidg New
YORK banking houses or institutions,
a canvass Of the financial district indi-
Gated yesterday. The bankers who
presumably would be called upon TO
distribute the American fhare Of q
$500, 100000 bond hoststiOn for the
benefit Of Germany were unanimous
IN expressing grsve doubts ~ 10 the
feasibility Of such an operation. and
many Of them questioned i.s efieaey
a. a means Of meeting Evrope's prob
lens.
The canvass further showed that no
serious consideration Is being given
currently 10 German loan by bankers
here and that the suggestion Of leon,
n AZ all ofieisl. is strictly Of Wash
inTton origin. Several bankers have
been sounded out recently BY The Ad-
ministrstion regarding their views on
the European situation, and this fact,
IN conjunction with the loan rumorss.
is felt 10 be extremely significant Of .
changing policy At the capital.
sloan Might Be Futiler
The position Of Mr.. Morgan on Ger
man loan has not changed since the
conclusion Of the bankers COMMITTEES
at Paris. when he issued lengthy
memorandum explaining the conditions
that must be met before q sound basis
would exist on which an international
loan 20 Germany could be undertaken.
The further detsrioration Of Germany
since that time is Characterised as per-
haps necessitsting the imposition Of
additional conditions, but. in the main,
the essential prerequisites are stated
as the granting Of . moratorium TO
Germany and agreement by the Allies
upon a reduction Of reparationS TO an
amount which Germany now feels she
can pay at the expiration Of that pc
Rod Of grace.
"The European situation can never
be ftraightened out nor q German loan
hoated until Germany knows 70 a
hnslity where she stands" was the
declaration Of q lesding International
banker.
Another banker, who scoaed AZ the
suggestion that . German loan was
now under consideration, said II was
By no means certain that Germany had
not gone 90 far over the dam that such
.-rs.f1 An fnNfln ~ AZ all
feasible.
Charles L. Mitchell. president Of the
National City Bank, said that 50 far as
he knew no loan was now under con-
sjdertaion. lie took the view that the
Allied nations could not very we'll
agree 70 a reduction Of reparations 80
long % the United States insisted
upon payment Of principal and inter-
eat on the Allied debt to the Treasury
on the basis determined by CongresS
for discussions by the funding eommis-
sicn.
Time IL Not Yet Here
There 10 no use talking Of 4 Ger
man loan under existing conditions"
said Mr.. Mitchell. "First, q settlement
Of reparations and some agreement re-
specting international debts IL neces-
sary. Then you've got 70 determine
what basis there Is for a loan and
take up the problem Of German cur
reney. In that connection some out
side financial aid will probably be
needed. Eventually, ! think there Will
be a German loan, but the time Is not
yet here"
A further suggestion bearing upon
the situation which was advanced IN
banking quarters was that before the
Allies could get together on The repara.
tions question the United States would
have 70 be represented a. a conference
~ which the entire subject Of inter
national debts was threshed out and
settled. Not much hope Is held forth
that the Administration will be rep
resented ofhcialiy at the January
conference In Paris, II being pointed
out that this Is forbidden specifically
by Congressional action, but the trend
at Washington Il believed 70 be strong
ly In that direction.
The head Of q prominent banking
house added 20 the suggestions Of 4
moratorium and Of the hxation Of repa.
rations AZ a definite amount within
Germany's ability 70 pay, the thought
that Frances threatened occupation Of
the Ruhr OF other military action mus
be finally abandoned before q loar
would be practicable.
Receivership Only Means
A partner Of another frm said {
Germsn loan last May would have beer
comparatively easy OF arrangement. but
that, owing 10 the deterioration oi
Germany since then, II could be han
died now only on a receivership basis
In other words, the Allies would have
10 exercise control tantamount to that
Of receiver OF corporation, and ths
bonds issued would correspond 70 re.
eeivers' certificates. He said he knew
Of no consideration being given a loar
AZ present, and predicted breakup oi
Germany, civil strife and afiliation oi
Germany with Russia unless the Allies
reached an agreement.
Germany is holding together" h.
said. "only on the hope Of an Allied
agreement, and II Il is demonstrated
that that is impossible Germany Il
through"
Investment bankers said that ever
current market conditions. which are
not Of the best. would Justify expects.
tions Of ready sbsorption Of German
bond issue. II properly secured and sci
up, but could see nothing In the pres
ent situation 10 indicate that saleabls
bond which they would recommend
could be issued.