Arizona republican., 1922-06-11
Bankers End German
! Loan Meet In Paris
CONTINUED from Page one)

Continued from rage oHel
lishment of German credit, Mr.. MOT.
gan said. had shown that the Ilrs.
condition. namely, unanimlty. hdo hoe
been met Official French govern
ment statements. made while the
bankers were celebrating. to the eI-
feet that they were attempting 10 ae,
crease the German debt, he declared,
and that this could not be tolerated
by the French government, had serVeu
to convince the bankers that the sec-
ond condition, the establishment ol
Germany's credit, could not De met
He declared. however, that the com : :
mittee had never thought that IL hao
any power to pass upon the SUMS
owing by the German government,
but merely that it had been reques.eu
to advise the reparations cofninissioIi
as to a basis upon which Geriiahys !
could raise a loan, He said tnere Hau
been no discussion of capital afnoun,s
of reparations but only of a posslpie
arrangement of the annual payiienls
and these. either in cash or in kind
were the only method whereby Ger
many could effect payment OF Hei
just debts.
"I am now and shall continue to be
to assist in the solution of the prop
lens which confront the economic
life of Europe" Mr.. Morgan stated
"but / believe that in SO far as such
problems depend for their soiution
upon an international loan 20 Ger
many, in which the American investor
would take part. the solution IS nol
nossible without a general settlement
of the reparations question ana only
as part of such settlement. On-
doubtedly a settlement of TINS Ques-
ton involves the consideration and
arrangement of many other aueMions
which must be settled between the
governments in order to arrive at the
unanimity required for the first con-
dition of loan.
Il shall, of course, as | have stated
to the reparations commission, be
ready at any time to return ana DC
anything In my power when condi-
tions permit and the commission may
so desire"
GERMANY SATISFIED
BERLIN, June 10-News from
Paris that the bankers conference had
adjourned indefinitely without arriv-
ing at concrete conclusions reached
Berlin official quarters at time
when President Ebert is rusticatine
in the Black Forest and Chancellor
Wirth and Foreign Minister Rathenau
are paying social visit to the gov
ernment at Stuttgart.
When these social functions are
| disposed of early next week the cabi-
net will discuss the situation growing
out of the failure of the Paris deliber-
atoms to produce tangible results In
the shape of foreign loan or credit
! to Germany.
With government and parliament
| tary leaders away, a survey of tht
/ situation is dependent wholly upor
the editorial views which appear Il
concur in the prediction that the gov.
Isernment is about to face critica
! period in consequence of the failure
| of the bankers to unite upon an I'm
/ mediate definite loan policy. upor
| which Germany based her note O.
acceptance on May 20.
/ The Vossische Zeitung says:
''The immediate effects of thi.
postponement of Germany will be Il
oblige her to continue her MONTH,
installments of 50,000,000 gold marks
on the reparations account, which in,
| evitably will result in passivity 81
IaI as the pdldlCe suSelS Is CON
cerned. 1t will also accomplish fur
ther disastrous depreciation of tn,
mark. fresh initiation and disruption
of the budgetary equilibrium
The Lokal hnzeiger, which believes
a foreign loan to Germany. whatevel
| the nature and dimensions under ex,
listing conditions would prove {
doubtful asset, says:
IF the report is confirmed that the
! loan pour parlers have terminated
abruptly, then Germany can only
welcome the adjournment of ths
bankers conference with sigh of re-
1 lief"
| Foreign exchanges showed a sharr
rally upon receipt of the news from
Paris, the dollar touching 800.
| Settle Reparations First