The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-12-19
Up. MORGAN
,DIMS h0PESOF
GERMAN LOAN
,Continued from First Page.)

the Versailles treaty and some lin
itation of Germany's liability was
made consistent with the opinion of
investors throughout the allied
world, it was hopeless to talk loan.
Government Not Interested.
The United States government is
not a party to these informal ne
gotiations of the bankers. Mr.. Nor
gan went abroad as private citi-
zen and with no commission, Off
cial or unofficial from the Ameri-
can government. He. was invited
to sit with the international bank
ers' committee and render advice
TO the reparations commission. A
dispute arose as to the text of the
invitation to the bankers, the Eng
lish and French wording being
somewhat at variance. Anyway, the
French saw the bankers committee
as body attempting to usurp the
functions of the reparations COM
mission and as endeavoring to de-
crease Germany's PREPARATION liza
bility. Under such circumstances
the bankers committee accomplish
ed nothing except to set forth to
the world its views which are as
valid today as they we're then.
Unquestionably the United States
government is in complete accord
with the statement made by the
bankers committee, namely that the
fixing Of the reparations must be
done first before any private loans
can. be considered. The American
government has been hopeful that
France would revive the invitation
| to the bankers committee and that
at the same time diplomatic infiu-
ence might be cautiously exerted
to secure an agreement between the
allies to forego enforcement of GER
ftain sections Of the Versailles treaty.
Parleys Must be Made.
The diplomatic parleys must pro-
coed c0ncurrently with any efforts
Of the bankers to examine anew the
intricate questions of credit involv-
ed in the flotation of a loan to help
Germany. The last word from the
bankers committee was in itself a
bid for another invitation. 1t reads
as follows:
1.-THE committee is deeply con-
scious of the immense assistance
to the economic recovery of the
whole world which would be af-
forded by gradual conversion of
Germany's obligation from a debt
to governments into debt to pri-
vate investors based like other pub
flic debts, not upon external sane
tons, but on the general credit Of
the debtor country. They believe,
indeed, that the resumption of nor
NAL conditions between countries
and the sterilization Of exchanges
are impossible. without a definite
! settlement Of the reparations pay
ments as Of other external public
debts.
Seek Invitation.
IF at any time, therefore, the
reparations commission is able to
repeat by unanimous decision the
Invitation which has now been ex-
tended by the majority, the COM
mittee will be glad to meet again
and resume the inquiry. They can
not conjecture whether the allied
governments would be, able to ac-
cept the necessary conditions, but
II so they repeat that they are hope
ful that substantial loans could be
raised"
Finally the committee desired to
point ont that in the meantime and
even In the interval between such
renewed invitation and the concern
OF subsequent negotiations. Ger
many's financial position may OBJ
vfously be threatened with serious
danger1 protracted negotiations for
4 ln1HA hong fArDd lnan ,1,aiahf ma