Arizona republican., 1922-06-11
BANKERS END
GERMAN LOAN
Until.
ALLIES AGREE
Lack Of Complete Agree
ment Among Allies On
Reparation Causes Bank
ers To Adjourn Meeting
Republican A. p. leased Wire1

/ PARlS, June 10-Complete agree
ment among the allies on repara-
tlons, solvent Germany and settle
| ment once for all of the full repara-
tions debt, the international bankers
| committee find in their report 70 fhe
reparations commission, are essential
to the success of an international loan
TO Germany. In view of tn fact that
these conditions are lacking and be-
cause of the objections of France
| to revision of the total reparations
due from Germany, the committee has
| decided to suspend their study OF
the question, though confident that a
substantial loan to Germany could be
floated if these conditions were full
filled, and they hold themselves
ready to resume consideration OF the
question on the unanimous invitation
of the reparations commission.
The committee recognizes that there
is a certain dependency of repara-
tion settlement upon the question OF
the inte:- allied war debts which Is
outside of the committees iurisdic
ton, and they point out the danger
OF collapse of German credit if the
negotiations for settlement are too
long delayed. A short term interim
loan. however, could be made which
would remove that danger. But q
short term small loan. it is said
would be of no benefit to certain of
the allies, who would receive little
or none Of the proceeds.
The French delegate, Charles Ser
geant, dissented from the report, say
ing he was unable to accept any re-
duction in German liability under the
treaty of Versailles. or any diminu-
tion whatever of Frances rights un-
der the treaty.
The committee decided that they
could not usefully continue their
study, as they We're extremely anx-
'ious that no action of theirs should
inJure the interests of France and
that if France did not at the present
time desire any inquiry into the more
general conditions necessary for re-
establishing of Germany's external
credit. the committee did not feel
justified in undertaking that in
quiry.
The committee observe that an es-
sential condition Of an external loan
at any time, is that the public must
feel that Germany is making real
and substantial efforts to place her
finances upon a stable basis ard that
q second essential consideration is
removal of the uncertainty regarding
the reparations obligations.
Allies Must Be Benefited
The committee had before them
statement to the effect that Ameri-
can bankers and investors could he
interested in substantial degree On
the purchase of German obligations
only if a further fundamental condi-
ton was satisfied, namely, that such
loan should be at the unanimous
request and for the benefit of the
allied nations.
Among the fundamental conditions
of American participation was unan-
unity among the lenders, as wei as
the establishment of the credit Of
the borrower.
The report toucnes upon the inter-
allied debts as being outside the
of the committee, and that
subject could not be discussed. Hut
the fact could not be ignored that
these debts We're pcInd to be dis
cussed among the factors in the prob
lem of securing that desirable allied
agl cement, which also was one of the
essential conditions OF loan to Ger
many.
Solution of the European economic
problem insofar as they depend for
their solution upon an international
loan TO Germany in whicn the Amer
:can investor would take part, is not
possible without a general settlement
of the reparations questions. and only
as part of such settlement, de-
clared j. Pierpont Morgan, New York
banker. in statement made public
tonight
Mr.. Morgan, the American repi%
sentative on the international conf
mittee of bankers, who have been
advising with the allied repararions
commission concerning the possibility
Of an internatioal loa to Germany,
said that in his opinion the two
fundamental conditions OF American
participation in such an enterprise
were un animity among the leaders
and the establishment of the credit
of the borrower.
German Credit Unstable
The reparations commission. by
voting 8 to l to the effect that the
bankers should discuss
all questions which might have
bearing upon the general re-estab-
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