The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1922-06-13

Frances Effort to Blame United States
for Failure of Bankers Conference is
Semi Officially Answered - No More
European Loans at Present.
BY DAVID LAWRENCE.
Especial Dispatch to The Reformer.)
Copyright 1922.
WASHINGTON, June 13.-Although
]. p Morgan attended the bankers con-
ference at Paris purely as a private citi-
zen and possessed of no official connection
with the United States government, the
statement he issued in France setting
forth the reasons why a loan to Germany
was at present impracticable was re-
ceived here with the fullest satisfaction.
Mr. Morgan's insistence that the rep
arations problem must first be settled
and that there must be unanimity among
the allies on this question is a reflection
of the views held in official quarters here.
The effort of certain semi-official
newspapers in France to blame the
United States for the failure of the bank
ers' conference on the ground that Ger
man reparatiOns cannot be reduced be-
cause America will not reduce the allied
war debt was met yesterday by informal
officials here to the effect that German
Preparations and the allied debt payments
to America were two separate and dis
tinct things, This was the position OF
the Wilson administration whenever the
subject was preached abroad and offl-
Gals today emphasized that the Harding
administration felt the same way about
it.
The French stood so positively against
reducing German reparatiOns payments
that the effort of the international bank
erS to arrange for a loan to Germany
wherewith to pay her debt gradually
was doomed France however, is I'M
willing again to be placed in the posi-
| ton of blocking world reconstruction and
| the French press is therefore trying to
| shift the burden to America. This kind
| of tactics hardly increases the affection
| of one country for the other and admit
| tedly makes a settlement in the future
much harder, but so long as those in
authority in France stand adamant on
| the reparation questions the chance of
American cooperation through private
| loans is remote.
Since the American government took
| its stand firmly against the lending of
| any more government funds to Europe
| the only opportunity European govern
ments have had to adjust their finances
has been through loans hoated through
| the private bankers of the United States
| and other countries where the war did
/ not materially 70 affect investment re-
sources. Mr.. Morgan's trip to Europe
was undertaken with the belief that the
| French would consent 10 a modification
of the scale of reparation payments and
| with the expectation that a loan to Ger
many would start the ball of reconstrue-
| ton rolling i'm France. France owes
| large sums to Great Britain and has been
| insisting from the start that her pay
ments to England viii depend on her
| receipts from Germany. She is now try
/ ing to get the United States to accept the
same line of reasoning with respect to
| the war debt due this country. The
| policy viii fail and Frances opportunity
to raise funds from any purpose will be
diminished because of governmental dis
| favor here.
Sooner or later a ministry will arise in
| France which will handle the question
| more adroitly for while the government
| here refuses to admit that there is a re
| lationship between reparations and the
| funding of the allied war debt. the con-
nectiOn is too obvious to escape. The
| only difficulty is in getting out of a
vicious circle At present neither side
will recede Eventually, however, if
Germany's reparation obligations are
eased either through postpOnement or
actual reduction in the scale, the Ameri-
san commission which was created to
fund the allied debt will have to take
into consideration the available sources
IF income and the assets of the allied
countries and ease their burden, too
But America will not take the initiative
or offer active help until Europe does
something for itself. Economic recon
struction is being delayed by the uncer-
tainty which surrounds the reparation
problem-the threat of coercion con-