Evening star., 1922-12-16
CONFERENCE HERE
ON DEBTS LOOMS
Continued from First Page.)

should pay and the allied view of Ger
many's capacity to pay.
On the outcome Of that issue de-
pends something even more FAR
reaching. namely. the floating Of
loan by international bankers. There
seems to be an impression abroad that
the United States government can
somehow sanction such a loan. This
is possible. of course. but highly i'm
probable. The cabinet didn't discuss
the making of a loan by the govern
ment or even the extension to Ameri-
can private bankers Of anything that
might be construed as guarantee Of
moral support.
Bankers to Get Views.
The only way the American gov
ernment gets into the picture at all
on the matter Of foreign loans is
to examine them carefully in the
light of its policy of year ago.
which was announced to all bankers.
It required that any banker or bank.
ing firm desirous Of floating foreign
loan should as a matter of patriotic
interest lay the proposition before
the government so that the latter
might interpose its objection.
ers floating any kind Of a loan they
want, but. obviously, government
objection would have as much weight
morally as a limitation Of law. The
ADMINISTRATION insists that loans must
be made for productive purposes
abroad and not for the stimulation
or maintenance of armies or navies.
1t was proper. therefore. for J. P.
Morgan. prime mover in the interna-
toner bankers' committee, to con-
suit the Washington government to
learn if it had any objection to the re-
yival OF the proposition made a year
ago whereby after q moratorium was
declared on Germany's payments this
year a loan might be advanced to
help Germany meet some current
obligations. Such loan would be
valueless If France and the allied
powers did not give up the so.called
military sanctions provided in the
treaty of Versailles or at least agree
to withhold for a period Of years the
fulfillment of those sections of the
treaty. No banker would consider
man loan If at any moment France
was empowered to seize the very re-
sources out of which Germany hopes
to develop the money to pay her
obligations. ~.
Harvey Coming to Give Views.
So the whole situation is inter-
woven in such fashion that the Presi-
dent has asked Ambassador Harvey
to come here at once and give his
viewpoint on Just how desperate Eu-
rope really is and what measures
seem to him from an intimate con-
tact with Europe to be advisable.
Hor ~
| it be known that he has no desire to
avoid the exercise OF American in.
| huence; in fact, that he desires to
use 1t to the utmost to help in the
present crisis. The foreign govern
ments have made 1t clear that the
United States. because of it's detach-
ment from European controversies. Is
in strong position to make its voice
heard and Its views effective. Media
| tion has been sought. It will be
granted.
That's as far as any description of
the present situation go. The Amer
ican commission created by Congress
to fund the allied war debt 10 restrict
ed by law from RENTING any part
Of the principal or interest. Some
people have thought additional power
would be needed from Congress to
enable this commission to have q free
hand in negotiating with the allies.
It seems to be the consensus Of
| opinion now, however, that more
power is not required In order merely
to postpone the payment Of interest
for q period Of years or even the
acceptance of new bonds from the
allies with interest dating from 1928
or 1894, leaving the deposition OF
the interest accumulated, to date to
be dealt with by some future Con-
gress and administration. - 1.
(Copyright. 1Q22l