Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1922-12-16
- J
AMERICA DRAWS
PLAN TO help
SOLVE PROBLM
Note That May Be Sent Will
Be Influenced BY
French.
PLANS GONE OVER
PLANS GONE OVER
Propose Flotation of Credit By Bank.
ers To Be Placed At Disposal Of
Bankers of Every Nation--NOt to
be Confused with Direct Loan.
CIV ISAAC GREGG

(By ISAAC GREGG)
Washington, December l6,-The
United States government may COM
municate within a reasonable time
either through a c0mmon note ad-
dressed to the Allied governments,
or through representations of Amer
lean diplomats, an American plan for
settling the reparations question, end
ing the turmoil of Europe and for
putting Germany in a position to
meet her reparations payments, 1t
was learned today.
While delivery of the American
plan to the Allies will be contingent
somewhat on the attitude taken by
the French Chamber of Deputies
when Premier Poincare reports on the
London meeting, it has been con-
frmed here that the American gov
ernment is actually working out a
[concrete plan for settling Europe's
immediate difficulties and has hopes
that the plan when completed, will
prove acceptable.
This plan was gone over at yester-
DAYS meeting of the cabinet after
its general details had been submit
! ted to President Harding, Secretary
of State Hughes, Secretary of the
Treasury Mellon and Secretary OF
Commerce Hoover. 1t is unlikely that
any announcement will be made at
the White House as this government
does not want to make premature
tdeciarations and desires~to, see first
| the effect of Premier Poincare's state
ment to the French Chamber.
If, however. the French attitude
is anywhere near conciliation and if
the French do not Immediately de-
mand strict enforcement of the Yer
sailles treaty and the seizure of the
Ruhr, then an announcement may be
expected from this government within
reasonable time.
The keystone Of the American plan
is thei flotation of a credit by syn
dicate of international bankers in ia
! vor of Germany. The credit would
be in the neighborhood of 81 SOC, ,000,-
900 and would be allocated to the
bankers of the various, nations ac-
cording to preconceived schedule.
American bankers, it is understood,
would take at least half the credits
and possibly as much as $1,000, ,000,-
000.
This credit should not be confused
with. a direct loan 10 Germany, The
Gazette correspondent was warned
today by persons known to be- famil-
lar with the plan being evolved. In
stead the credit would be on the same
basis as nearly all American war
credits for Europe; that is, Germany
would be able to buy in the United
States and other countries partici-
Fpating in. hte credit, foodstuffs and
raw materials up to the amount Of
the total credit in each of the coun-
tries. -,
Security for this credit would be a
mortgage on all German resources,
including export and import duties
which mortgage is now held by the
Allied governments under the Yer
sailles treaty. In other words, the
Allies would have to agree to sur
render sufficient of the. mortgage TO
give the, international bankers secur-
ity for their credit. Getting France
and Belgium to agree to abate their
mortagage claims is one of the su-
preme although not insuperable diff
eulties of the whole scheme.
Inasmuch as the whole problem is
$50 complicated and intricate, and in
asmuch as the consentcof every sig
natory to the Versailles treaty would
have to be given before the plan
could be put in operation, 1t is use
less to expect fruiion of the tenta-
tive American plan for some time.
However. it is possible that this gov
ernment may be able to announce the
plan in principle in a short time,
leaving the details to be worked ont
later after the Allied governments
have agreed to the principle.
1t is emphasized today that no plan
is under consideration for govern
ment loan to Germany inasmuch as
that would make necessary Increased
taxation which would be lntolersble.
Furthermore, the formula Of putting
through government loan would re-
auire the consent of Congress and
that might be hard to obtain, even
extremely worthy cause.
|, It is regarded as very likely. that
France. and Italy will attempt to
bring up he question Of lntarallied
debts If the United Sixties advances a
scheme for a Gertman3 credits From,
the outset, however. this government
will take the position that the debt
question fnust be'kept ont of the con-
troversy, inasniueh as: this country is
mailing no demands for Immediate
payment Of WEI dehts ard docs net
intend, 70 press the question FOR some