The Washington herald., 1922-06-08
Reparations Body Votes
To Allow Bankers to
Ignore First Figures.
PARIS DEFEATED
BY OTHER ALLIES
Sensation Is Expected To-
day as French Ask An
other Meeting.

PARIS June 7.-America openly
ranged itself against the sSsOoo.-
100000 German reparstiens bill for
the first time in the history Of the
rcparations commission this morn
ing.
Roland w. Boyden. the unoricial
American repsrstions delegate. stood
with the British. italian and Bel
gisn delegates when they voted
three to one against France TO en-
large the Morgan committee OF
bankers to allow the bankers to ig-
more the London schedule. making
their own investigation into Ger
mays capacity TO pay. This vote
opened the gate TO a reduction OF
the reparations. because the pres
tige Of the banke!s will invest their
repsrations estimate with more au-
thority than the. London schedule.
VIII Visit Germany.
The American delegate could not
vott with the majority but ne
frankly announced that America
considered the $4,000. 900. 600. which
does not include interest. as too
high, and this was written into the
records the same as an actual vote.
J. p. Morgan and his associates
decided this afternoon that the rna-
jority, in spite OF the fact that
France holds ffty-two per cent Of
the reparations and refuses to re.
duce the London schedule without
reductions Of the war debts, was suf-
hcient authority TO proceed with an
Investigation Of Germany's ABILITY
to pay. which is the first step IN
arranging loans. The bankers will
Plunge into their Investigation to-
morrow ad probably will visit Ger
many soon. as..-
sen.stfon Tn Predicted.
The extraordinary Developments
today created a tense situation ana
France tonight feels itself driven
al bay by Great Britain. Italy
and Belgium. The terrific conse-
duences to all Europe in the shane
Of separate French action against
Germany in the event Of the hrst
German misstep is being gravely
weighed in all the chanceilories Of
Europe
Premier Poincare hurriedly visited
President Millerand several times
TODAY and as a result France has
asked for special meeting Of the
reparattons commission tomorrow
when a greater sensation than thar
Of today is expected.
II has been learned that IN,
French government will denv rbs
right Of the other allies. artJnp
through the reparations comrnissior
or otherwise. TO reduce the Frencf
claim upon Germany now that the
amount Of reparstions has been de.
cided and the respective shares an.
poruoned. IL also will say that the
french government will consider re.
oucing the repsrations II the wat
oeots are reduced proportionately.
France is Bitter.
Until the question has be.r
Fought out at the meeting tomor.
row of the reparations commission
the bankers cannot 20 forward,
confidently in the investigation q.
Sermany's capacity to paw and Il
arrange for a conversion OF the re.
duced German debt.
| aSe IL oltter over the ma ajority
decision Of the reparations com.
mission because il has spent over
eo'ooO.oOo.ooO paper francs trough
lyD $4,000. .oOO. .oOO) on the rscon
struction Of the devastated region
since the armistice and this is onl,
a beginning. During the same ne
riod II has received practically ns
reparations from Germany, al
though the army costs have beer
paid and cattle and coal material
received in restitution. This ac
amounts to at least 25 600 geo 0ot
gold francs G5.o0o. .OOo. 900. 1t 4
more than France could receive IL
/ r'.?ar"finns -. several wears.
Another cause for French en-
bitty lnent is the tact that E'raHs.
holding 50 per cent of the repars
tions has only one vote on the con
mission, while Great Britain Wild
twenty-five. Italy with ten. an,
Belgium with eight can constitut
9 majority.
Belgian Against France.
Today for the first time Belgium
voted against France and this ma.
mean that there will be continual.
three votes against the singl
French vote. Belgium's decision
was. partly due to its priority o
Assoc, 600 .0o0- gold marks (t625. geo.
00o) and partly due TO the desir
OF Belgium industries to max
agreements with similar German
industries TO fix prices.
Actually q unanimous vote Is nee
essary for the reparstions commits
sion 10 reduce the German debit
but until 1926 only a majority vot
is necessary 20 give Germany
partial or full moratorium unit
1880.
The allied determination TO re
duce the German reparations ha
entirely eclipsed the importance o
the Morgan loan for several week
at least and the Nsr debts VIII b
tied 10 the reparations.
The ofacial American viewpotn
in Paris on war debts is that Franc
must partly forgive some Germa
Preparations before expecting Amer
lea to forgive its debt
I ~