The Columbia evening Missourian., 1922-12-21
Financier's Announcement Puts
Loan of Allied Bankers
on Basis of June
Program.
FIX PREPARATIONS FIRST
L. S. Agrees That Amount Must
Be Decided Before Pri-
vate Loans Can Be
Considered.
By DAVID LAWRENCE

sador that prospects OF loan IRON in
ternational bankers we're no better today
than they we're las, June has cleared the
air Of rumors and fantastic theories Of
American aid to Europe.
Mr.. Morgan said what the Department
Of State was unable to say in answer to
the unfounded fears of the -irreconcil-
ables- and others who believed some rad
ical departure in American policy was
forthcoming. But Mr.. Morgan's an
nounoement really has another signih-
dance. 1t means that he has told France
that aid from the Allied bankers cannot
be given unless the program drawn up by
the International bankers committee last
June i revived.
The key to the future lies in the care
fully wordcd document issued then by
Nr. Morgan and his colleagues. viii
France permit her member Of the Repar-
aiions Commission to vote with the ma
jority and issue a unanimous invitation
TO the bankers committee again to devise
ways and means Of assisting the general
economic situation in Europe?
The bankers in June incurred The dis
favor Of the French by pointing out the
obvious though unwelcome fact that un-
til there was some moderation on the part
Of France toward the enforcement claus
Is Of the Versailles Treaty and some linn
i;ztion of Cermany's liability was made
consistent with the opinion of investors
throughout the allied world. it was hope
less to talk loan.
The United States government is not
party to these informal negotiations of
the bankers. Mr. Morgan went abroad
as a private citizen and with no commits
sion, officially or unofhcially. from the
American government He was invited
TO sit with the international bankers
committee and render advice to the Re-
parations Commission. A dispute arose
as TO the texr Of the invitation of the
banker, the English and French wording
being somewhat al variance Anyway
the French saw the bankers committee
as body attempting to usurp the func-
tions of the Reparsticns Commission and
as endeayoring to decrease Cermany's
reparstion liability. Under such circum-
Stances. the bankers committee accom-
plished nothing except 10 set forth 20 the
world its views which are as valid today
as they we're then.
Unquesiionably he United Ssaies gov
eminent is in complete accord with the
statement made by the bankers commit
tee, namely, that the fixing of the repa-
rations must be done before any private
loans can be considered. The American
government has been hopeful that France
would revive the invitation to the bank
ers' committee and that al the same time
diplomatic influence might be cautiously
exerted to secure an agreement between
the Allies TO forego enforcement of GER
tain sections Of the Versailles Treaty.
The diplomatic parleys must proceed
concurrenily with any efforts of the
bankers to examine anew the intricate
questions of credit involved in the fota-
tion Of loan TO help Germany. The
last word from the bankers committee
was in itself g bid for another invitation.
1t reads as follows:
The committee is deeply conscious of
the immense assistance to the economic
recovery of the whole world which would
be afforded by gradual conversion of
Cermany's obligation from debt TO gov
ernments into debt to private investors,
based like other public debts. not upon
external sanctions but upon the general
credit of the debtor country. 1t believes,
indeed, that the resumption of normal
conditions between countries and the sta
bilization of exchanges are impossible
without definite settlement of the repa.
ration payments also Of the external pub
lie debts.
IF al any time, therefore, the. Repara.
fions Commission is able to repeat by
unanimous decision the invitation which
now has been extended by the majority
the committee will be glad to meet again
and resume the inquiry. 1t cannot con-
lecture whether the Allied governments
would be able TO accept the necessary
conditions but if so it repeats that it is
hopeful that substantial loans could be
raised.
Finally the committee desired to point
cut that in the meantime and even in the
interval between such renewed invitation
and the concern of subsequent negotia-
tons, Cermany's financial position may
obviously be threatened with serious
danger; protracted negotiations for a
large long-term loan might mature too
late, if not preceded by immediate help.
But if the problem were considered anew
in the improved circumstances suggested
and with real prospect of ultimate SET
tlemen,, the committee feels that the OBJ
stacles which at present confront an in
term loan probably would not prove
to be insuperable.
with real hope Of definite settle
rnent within reasonable period, it would
be much easier TO arrange a shorter-term
secured loan sufficient to save German