The New York herald., 1922-05-23
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GERMAN LOAN WAITS
BANKERS VERDICT
Terms Uncertain Until Finan-
ciers Decide on Feasibility
and Conditions.
WILL RELIEVE TENSION
If Issue Is Arranged, Paris
Thinks America Might
Take Half.
WILL RELIEVE TENSION

PARIS, May % (Associated Press) -
EVERYTHING at the moment concerning
the size and terms of the proposed in
ternational loan to Germany is vague
and Will remain uncertain until the MEM
pers of the committee OF international
financiers, including J. p. Morgan of
New York, which begins its sessions
mere on Wednesday. have discussed
whether such loan Is feasible. and. If
so, It's conditions. The circumstances
under which the committee was formed
Indicate that the Governments OF
France, Great Britain, Italy and Bel
GUM are disposed in advance to re-
ceive the conclusions of the committee
with great Difference. The members OF
the reparations committee are looking
with much hope for a permanent settle
ment of the German reparations prob
lem as a result of the meeting
The commission in determining who
should be invited from America agreed
that no one having direct relations with
German finance could be considered, and
decided-upon Mr.. Morgan as the banker
representative of American finance and
as having a clear appreciation or both
the American and allied interests.
So many questions are likely to be
raised that the committee, If it under
takes fully the work that appears neees-
sary, may be in session weeks or even
months. Some of the questions that
quite possibly will arise would concern
first lien on all German resources, in
cluding customs and internal revenue,
as well as matters relating to the trus-
tees for international bondholders and
consent of the allied Governments to
conditions that might seem IN part to
replace the Treaty offVersalllcs. Some
of these questions might even require
Parliamentary approval. One that may
take much time will be the collection
of the enormous quantity of informa-
tion which the committee will need, pos
sibly, necessitating the making of somc
original studies of the German situa-
ton. M
Consequently, the acute moment OF
tension in the relations of the Allies to
Germany at the date of the expiration
Of the allied ultimatum, May 81, may
be relieved until the committee has
completed its work or until 1t is seen
that it can find no solution of the
problems that would be acceptable to
the countries supporting the loan.
Possible Loan Allotment.
Should the committee find it feasible
to recommend an international loan,
only part of it. 1t is assured. would be
issued this year. of which, roughly, it is
supposed the United States might take
half Great Britain one-fourth and the
remaining fourth might be subscribed
by Holland, Switzerland. France and
Spain. 1t Is assured also that good
deal of the German money that has been
accommodating In neutral countries and in
England might flow into this loan IL the
rates of interest were sufficiently at
tractive and IL 1t became evident that
the future of the reparations question
was fairly clear.
Inquiries made to-day brought out the
information that the financiers will
meet without having been limited by
the reparatons commission as to the
form or extent of their work. One idea
that seems to be general among the
members of the commission Is that the
committee may take up the whole SUBJ
Jest OF reparations and recommend
where the line shall be drawn betweer
the total amount OF cash payments and
the payments in goods.
In Cash and Goods.
The endeavor then would be to submit
a plan for meeting the cash payments,
partly by an international loan and
partly at a later period by Germany
alone through her own resources.
Payments in kind would be left where
they now are, with the reparations COM
mission and the Governments concerned
NJ de la Croix, former Premier Of
Belgium chairman of the committee,
has arrived In Paris and has invited his
fellow members to dinner to meet for
the first time tomorrow evening. The
other members are Signor d'Amelio. vice.
chairman. of Italy; NJ. Visserng of Hol-
land, Sir Robert Kindersley of England,
NJ. Serjent OF France, Mr.. Morgan OF the
United States and Herr Bergman, for
mer Under Secretary of Finance OF Ger
many.