New-York tribune., 1922-12-19
Preparations Settlement
Must Precedc Talk of
Advance, Banker Tells
Ambassador Wiedfcldt
Adheres To Strict
Conditions of Aid
Unanimily of Lenders
and Established Credit
of Borrower Required

J. p. Morgan & Go. announced
Yesterday that thoy had refused
direct appeal from Germany for
loan. Otto Wiedfeldt, German AM
bassador to the United States, deliv-
cred his country's request &c Mr..
Morgan on Saturday. The latter
declined 20 enter into discussion
Of the request ON the ground that
consideration of loan 20 Germany
was impossible, pending a settlement
Of the reparations problem.
An official statement, issued on
behalf Of the firm by Thomas W.
Lamont and revealing for the first
time the purpose Of the Ambassadors
conference with Mr.. Morgan here,
set forth this fact and by indirection
also stamped as false reports re-
Gently current from Washington
that the Morgan support had been
pledged to sl,5OO,OOO,OO0 German
loan project. The statement, Il was
indicated, may be accepted as a for
nal disclaimer by Mr.. Morgan and
by his firm that they are interested
in or cognizant Of any discussion Of
German loan.
"Dr. Otto wiedfeldt, the German Am
bassador, called on Mr.. Morgan on
Saturday" the statement said. 10 make
inquiry as 20 the possibility Of our un.
dertaking 10 assist in floating a large,
so.callod international loan 10 Ger
many.
stand Unchanged, Berlin Told
"In his reply Mr. Morgan ndyertsd to
the statement that he had made fol-
lowing the sittings Of the Bankers'
Committee last June, and In effect told
the Ambassador that our position was
exactly the same as il wss then. he
informed him that while We greatly de-
sired to be Of service 10 the genera
situation. nevertheless matters had
manifestIy reached such point that IL
was not possible for Us 20 discuss or 10
consider a loan 10 Germany unless and
until the reparations question was set
tied"
Mr.. Morgan, in announcing his posi-
ton after the deliberations Of the
Bankers Committee terminated with
out agreement, presented the following
as the two fundamental conditions
which must be established before the
American banker or investor could BE-
interested to substantial degree IN
the purchase Of German obligasionsi
4First-sueh a loan should be al ths
request and would be for the beneht Of
the Allied nations. This could In no
wav be better expressed than BY the
active cooperation Of the private
bankers OF the Allied countries IN ths
distribution Of the German securities
% their own nations.
Second, through the technical ,s-
curity 20 be given by Germany and ".
rehabilitation Of is internal financial
situation Germany should clearly show
a desire 10 meet is obligations In the
hone that By the fulhllment Of these
obligations Il could re-establish Us
credit as one Of the commercial nstions
Of the world.
"Unanlmity and Credit"
"ghortly stated. therefore, the two
Fundamental conditions Of American
narticiration we're, In my opinion.
unanimity among the lenders apd the
establishment OF the credit Of the
borrowers
The announcement from the Morgan
Offices, coupled with the more informal
disclaimers from other international
financial leaders In New York, was ae-
cepted yesterday as finally demonstrat.
ing that the initiative which has led
TO the rumors Of an impending Ger
man loan has been taken IN WASH
ington.
Mr Morgan had no plan or sugges-
tions 20 lay before the state Depart
ment when he called upon Secretary
Hughes last week Rather he went,
as other bankers have gone, 20 meet
the Administration desire for facts
and opinions regarding the European
situation.
Il Is believed in the highest banking
quarters here that some change is un-
der way In the attitude and policy Of
the United States government In deal
ing with the financial and economic
problems Of Europe. No cTedence is
attat he'd. however, 20 the reports from
Washington that the Administration
has decided upon a definite program
involving as one Of It's steps q loan 20
Germany, while even an offer Of its
services As referee In the reparatlous
dispute Is felt 10 be doubtful inasmuch
as this would constitute reversal OF
the position adopted when Germany
appealed 20 America several months
ago 10 accept such a role.
May Aid Paris Farley
The most that Is expected In ths
financial district is that the Admins.
iration, possibly utilizing the Allied
indebtedness TO the United States
Treasury ss a lever and attempting %
fdfce capitalization Of public opinion
here and abroad through the dispatch
Of a nOto or Issuance Of . statement.
will seek TO bring about q settlement
on rcparations az the conferences sched-
uled 70 begin In Paris on January 2.
The banking community IL agreed
with Mr. Morgan that settlement %
the rcparations question must prseede