The New York herald. [volume] (New York, N.Y.) 1920-1924, 1922-05-15

Copyright, I9g2, bB The NEW YORK HEKALD.
New York Herald Bureau,
Paris, May IL.
The arrival yesterday of Andreas
Hermes, German Minister of Food, to
lay before the Preparations Commits
sion the new German proposals, to-
gether with the arrival next week of
J. p. Morgan to attend the reparations
loan conference. is giving rise TO muck
optimism here. A large part of this
seems to be based, however, on the
idea still persisting In European minds
that the United States, influenced by
the Genoa developments and con-
cerned over the effect the PREPARATIONS
problem is having on world economics,
Is about to interest itself in Europe
again and In some way come to the
rescue in the Preparations matter.
This same idea was largely behind
the French suggestions at Genoa, that
any commission of experts appointed
to study Russia should, if possible, in
clude the United States, the French
believing that If these commissions are
not confined to the Allies and neutrals
they would give an opportunity for
America to study the Russian problem
jointly with the other nations without
further committing herself.
See Hope I'm Morgan visit.
France herself will not be a member
of any commission that would actually
lot tl.A rtAta ht
seems rather curious In the face Of the
reports from America of continued dis
interest there in European affairs AS an
evidence of how Europe Is grasping at
any American straw. the greatest sig
nificance Is being attached here daily
to the visit of MIR. Morgan. there being
a disposition TO regard Mr. Morgan as
being the bearer of some actual inter-
national loan proposition that not only
has the support OF the American finan-
cial community but the tacit approval
of the American Government ..s.ia,s.
Well informed Americans are seeking
to dlssipate this impression by pointing
out that Mr.. Morgan Is coming merely in
a private capacity.
The fact, however, that the bankers
are berg called into consultation on the
eve of another crisis In the PREPARATIONS
situation has great significance. and
their counsel Is certain to have a salu-
tary effect.
According to the best reports of the
international loan figures these are con-
tanned in the proposals which Herr
Hermes brought to-day. the German sug
gestion being for a short term loan of
81, 000, 900, 900 running not more than
FIVE years, guaranteed by revenues from
tobacco and alcohol This loan. accord
ing to the Germans. would permit them
to pay France and also would enable
them 10 stabilize the mark. after which
another long term loan could be ar
ranged. permitting them to settle def
nltely their reparations obligations.
France Needs the Money.
The German proposal undoubtedly will
be studied by Mr.. Morgan at the con-
ference. with the opinion OF Mr.. Morgan
having the greatest weight. inasmuch
as America would be expected to con-
tribute the bulk of tie money.
French sentiment is favoring a loan
project, which is one reason why the
French press has quieted down lately
regarding the May 81 crisis. This is
because France wants TO get the money
quickly and sees now that about her
only chance IL in such a loan. The finan-
cial writer NJ Gaulois. however raises
the warning that America might want
back pay herself for the money advanced
TO the Allies from portion OF the Ger
man loan.
"Such loan" says this writer. must
permit Germany to pay part OF her debt
10 France rather than help the United
States collect herself. Tt is essential,
however. that we do not abandon any
OF the wea pons we have until we have
all the guarantees necessary to assure US
against being duped."