The New York herald., 1922-06-12
LOAN FAILURE IS SHOCK
TO THE GERMAN PUBLIC
Government Urged to Demand
Modified War Debt Terms.

Special Cable 10 THE NEw YORK HERALD.
Copyright, 1879. by THE New YoRK HERALD.
New York Herald Bureau.
Berlin, June IL.
The decision by the bankers commit
tee that attempts to arrange an inter-
national loan to Germany be abandoned
for the present at least took the German
public by surprise, because the press in
an effort to bolster the mark had for the
last two months announced specific
amounts which ]. P. Morgan and his
European colleagues had agreed to hand
over to Germany The Government is
being srged TO retract the concessions
which Andreas Hermes. German Min
lister or Finance. made recently in
Paris and to insist on the withdrawal
or the armies of occupation and a modi-
hcaton OF the terms of the Versailles
treaty.
German fnanciers are being urged to
finance the budget in such a way as
later to attract investments by Amer
lean and British bankers. Pessimists
believe that the decision will bring a
new flood of paper marks, precipitating
an economic crisis similar to that in
Austria. The Nationalists object to the
Reparations Commissions financial con-
troll OF Germany and wish to make use
OF this occasion to withdraw the Hermes
concessions. including financial control
and halt in the printing of paper
money.
Count Westarp. a Nationalist party
leader, wants the Government to use
the interim to stabilize the mark even
though business should suffer tempo
rarly thereby. Herr Won Heimberg in
Der Tag thinks that Gcrmany's chances
to get an outside loan are simmer than
those of Austria. He speaks of Ger
many's social blindness, by which Ger
mans avoid facing facts and cannot
make sacrifices through the submission
or individual gain to the common good,
which is essential to check Germany's
course on the downward path.
Shulze Pfaelzer in the TaegHsche
Rundschau ridicules Chancellor Wirth's
piecemeal policy of small loans saying
that only sweeping remedies will save
Germany from collapse. 1t urges the
Government to take the initiative in the
removal of the Polish corridor and the
withdrawal of the allied armies of oc-
cupation 1t believes that England and
America would not raise the same OBJ
jections to a revision of the treaty now
owing to the French opposition to their
proposals.
Germany should not accept small
loans, according to George Bernhardt
az sAiS FooNtocHC 6chhNgs WIN Wiitto
The German Government must realize
that further payments of the provisional
100000 gold marks endangers the ma
tion's existence. 1t should not accept a
loan of less than s1.000,0 900. 900 and
should take the initiative in showing it's
willingness to meet the guaranty de-
mands of the lenders.
BERLIN, June IL (Associated Press)
Contrary to his expectations, which
apparently were based upon the impress
sions prevailing in the United States,
j. p Morgan found the European polit-
ical atmosphere still unripe for un-
hampered discussion of an international
loan," says Germania, the Clerical
partys organ which believes, however,
that Mr.. Morgan does not despair. and
that he will initiate resumption of the
discussions in the not too distant future.
Vor1oderts expresses the belief that
the only course left to the German Gov
ernment for the moment is to hold fast
to its policy Of attempted fulfillment OF
the reparatons demands. 'if the nation
is to be spared still larger burdens of
insane punitive measures"
only thus" VorUderts declared
"can the position of the imperialistic
politicians be successfully undermined,
and their policies, of which NJ. Poincare
is the last but isolated champion swept
away"