New-York tribune., 1922-12-20
Denies State Department
SeniGermanAmbassadOr
ToJ p. Morgan or That
He Was Given a Refusal
Simply Told Issue
Couldn't Be FIOated
Hints at "LitiIe Lift Over
Hill" After Reparation
and Dellalion Are Made

a=a-s==asa@~
TLomas ". Lamont reiterated ias,
night as inhexlble The decision Of
American bankers not to participate
now in any kind Of q loan 10 Germany.
His declaration was made at the din
ner Of the Council Of Foreign Relations
at Sherry's, which was attended BY the
eSding inaneicrs Of the country.
Mr. Lamont denied the report that
the State Department had sent tho Ger
man Ambassador to see J. P. Morgan
& Co about loan. He denied that
the German Ambassador had been re-
fused loan for his country.
ave just told the ambassador that
a loan vas impossible" said Mr.. La
mont, 'for the reason that such a loan
could not be hoated."
Could Not Recommend II
After saying that bankers had little
power In such a situation, Mr.. Lamont
said: "We could not IN good faith rec
ommend such a loan to the investors
Of America" for the reason that Ger
many Is not In a position to pay the
rates demanded"
lie reiterated that tho repa;a.Ions
problem must be settled before loan
could be considered, His suggestion
toward settlement Of this problem
was that a definite sum bo fixed for
I'm w, 80 tnat 'fh7 would know what
she must pay" Germany would then
have 10 begin doAAtion and possibly
an Allied commission 10 supervise the
. stoms 10 see that the policy Of de-
fation was carried out"
"All these steps" Mr.. Lamont de-
elared, 'would have 10 be taken before
a loan on q large scale would be pos
siblc. Al such a time American in
yestors might be prepared 10 make a
loan-not q large loan, not a loan on a
gigantic scale, but enough 20 get her
over the HILL
No Loan for RepaTations
A large loan, however, he said was
out Of the question for a long time
90 come and no loan would be made
10 enable Germany 70 pay her repara-
tions obligations.
France, on the other hand, he said,
could always obtain a large loan in
d - -
aBut do not believe said Mr..
Lamont, that conditions In Germany
will be such as 10 make possible a
'oan on a large scale for quite some
time"
lie said also. discussing the ques-
tion OF the hampering by Congress Of
the manner In which the Allies arc
10 refund their debts TO America, that
the Congressional provision providing
that the entire debt be paid OF In
twenty-five years, with "A per cent in
terest, Is involving rather than clarity
ing the situation.
England, for example. he said Is
forced under this provision 20 refund
its debt in gold, and since one-half Of
the gold Of the world already is In
american golfers this simply holds
back England's economic revival
Dulles Blames Wilson
John Foster Dulles, formerly mem
Der Of the Reparation Commission, who
preceded Mr. Lamont, blamed the pres
ent reparations crisis On former Presi-
dent Wilson's deviation from that one
Of his fourteen points providing that
Germany should make reparations Tor
the damage done in invaded territories.
Mr. Dulles said that when the Allies
endeavored 10 include under this point
the listing up against Germany OF PEN
sions and settlement and separation
allowances the American representa-
tiyes communicated with President
Wilson, who was then on his way 20
Europe on the George Washington ask
ing his advice.
A wireless was Immediately received
from him saying that America was ~
honor bound to stick 10 the origlnal
point and the Allies. when told OF tnis'
agreed. Nevertheless, said Mr. Duiles
the Allies Immediately adhered 20 their
original demands in this matter and
got Mr. Wilson 20 agrce with them WIN
the result that he reversed MS Original
position, allowed the pensions and az
ioyances under the point relating 70
damage and increased the reparatlons
from approximately s20,0Oo'OOO'OOO TO
s33 900, 100000.
Hines Hits Changing Regimes
Walker D. Hines. former Director.
General Of the Railways, said that most
OF Europe's trouble was due 70 inner
ont defects in it's system Of govern
ment Governments in Europe, he said.
are 30 temporary that dehnite ana
continued policy Of feconstrueuoh -
impossible.
Eiihu Root presided az the dinner.