New Britain herald., 1922-12-20
NO LOAN ID BERLIN
 MORGAN MAN SAYS
I. ". Lamont Believes People
 Wold Not Buy Bonds


 people have no intention and the firm of J. P. Morgan & Co. will not float a gigantic loan in the United States for Germany because American in-, vestors do not wish to buy German bonds to enable that country to pay off reparations with American money, said Thomas w. Lamont last nignt. Addressing the Council on Foreign Relations at sherry's. MT. Lamont stated the conditions under which 8 German loan might be foated in this country at some future time, not a large loan, but enough to>enable Ger many 'to get over the hill" At the same time he voiced the opinion that the people of this country had the utmost sympathy for France and con- fidence in the thrift of the French people, and that they would be glad to lend money to France Ion large scale."
 T want to say that neither the firm of which I am 8 member nor any other bankers are going to make a loan of billion and half dollars to Germany" began MT. Lamont. T want also to deny report that one of the newspapers brought to me to- day that the State Department had sent the German Ambassador to con- fer with MT. Morgan. The State De- partment did not send the German Ambassador.
 ''The papers have been filled with articles regarding possible loan to Germany. and such a loan has been T 1utI There is nothing of that kind exist ing in the situation.
 Believe Loan Impossible.
 When MT. Morgan and I told the German Ambassador that loan was impossible we did not refuse such a loan, but we gave the reasons why it was impossible to float such a loan. The reasons are patent to you. They do not lie within the province of the bankers. He can only mobilize the situation. When we say that the loan is impossible we mean that the in vestors of this country would not con slider such a loan and would not buy bonds of Germany at the present time and we could not in good faith recommend such investment. The reason is that Germany is not in any position at the present time to in- spire our people with confidence to buy it's bonds.
 Bankers are unable to perceive the possibility of such loan at the present time. The first thing on the program, as the bankers view it, is the settlement of the reparations problem, the fixing of definite sum so that Germany will be aware of her obligation. Following the fixation of this sum Germany must set out on a 1 period of def1ation. There may pos. sibly come with that a scheme of the Allies for the supervision of such deflation including the administra- ton of Germany's customs.
 When those things are done, then l can imagine American investors will be prepared to lend money to Ger many, not on a gigantic scale, but enough to help her over the hill. | Even if that is borne in mind, Y doubt that Germany will be lent sum sufficient to discharge her reparations debt.
 All of us have the utmost sym pathy for France. The investors of l the United States have confidence in the thrift of the people of France and they will be glad to lend her on large scale, but do not opine that the situation of Germany in the near future will be such that Germany will be enabled to borrow money in order to take these sums and repay her reparation obligations"