The New York herald., 1922-05-27
N0LOAN T0GERMANY
unless SHE ACCEPTS
PREPARATIONS TERMS
World Bankers Decide Con-
sideration Useless With
out Guaranty.
MUST STOP INITIATION
If She Does, Loan May Be
Arranged Tor More Inan
Billion Dollars.
REFUSAL TO END PARLEY
Financiers Adjourn to May 81,
When Commissions Ulti-
matum Expires.
REFUSAL TO END PARLEY

PARIS, May 26 (Associated Press).-
The committee of international bank
ers in session here served notice this
evening on Germany that further
consideration of billion dollar loan
to the German Government is vir-
tually out of the question until Ger
many accepts in full the conditions
of the ultimatum Of the Preparations
Commission. which expires May 81,
and also gives adequate guarantees
that the imitation of Germany's cur
rency will be stopped Immediately.
The committee then decided to ad-
journ until May 81 to await the de-
cision of Germany.
The conclusion of the bankers was
arrived at during their meeting this
afternoon. which was attended by
Karl Bergman as representative OF
Germany. Bergman Immediately tele-
phoned the decision of the bankers to
Berlin.
ron April 1S the Reparations Commis-
sion sent note to Germany setting
forth the conditions that must be met
by May 81. These included an increase
of internal taxation by 60.o00oOO.0Oo
marks. the reduction of the output BY
tho Berlin Government Of paper marks,
an examination and supervision of Ger
man finances. On May 10 Germany
replied that It was impossible to COM
ply with all the requirements and DR..
Hermes. the Finance Minister. began
- p,-,ff f<,v,c C<1Yrl
mission. On May % II was announced
the ultimatum date of May 81 might be
indefinitely postponed II Germany ac-
cepted in its essentials the commission s
reparations program. A dispatch to
THE New YORK HERALD from Berlin
SAYS the Wirth Cabinet has approved
DIR. Hernes's agreement with the Repair
ationsl Commission.l
Believe Acceptance Likely.
In reparation circles tonight the view
wa. advanced that the action of the
f,nanciers probably would result In
complete acceptance by Germany Of all
their conditions. 1t was further stated
tha. acquiescence by Germany In the
Preparations Commissions conditions
probably would be productive of a loan
of more than billion dollars. since
the bankers have determined that a
large loan could be arranged under
those circumstances.
Tonight it was predicted in repara-
ti circles that a refusal by the Ger
mans to adhere to the Rcparations
Commissions ultimatum probably would
result in an indefinite adjournment or the
breaking up of the bankers committee.
NJ 10 Qff " a IN
be bound up in the question whether
ing of paper marks and make drastic
improvements in her currency.
Wait for Germany to Reply.
The sinancicrs completed their inquiry
into the state of Germany's finance at
this afternoons session, and 1t was ex-
planned that they had reached point
where Germany's guarantees must be
Forthcoming before tire committee could
discuss the details OF a loan, the security
for 1t and many other points.
The fact that the international bank
ers have been able to see good possibill-
ties for loan provided Germany SUBJ
scribes ec certain conditions, is regarded
very optmistically IN rcpsrations quar-
ters. where II was pointed out tonight
that the German Government could
hardly afford 20 do otherwise than
agree.
The bankers will take advantage Of
their adjournment until next Wednes-
day to get In touch with their respective
countries. The European members OF
the committee may return to their
homes for day or two. but all of those
attending the conference are expected
to find out to what extent each Of their
respective countries will absorb a Ger
man loan. so that they will be ready to
report at Wednesdays meeting.