The New York herald., 1922-05-19
OF LOAN
TO GERMANY LESS
Diminished by Absence of Def
mite Proposals and U. s.
Hague Refusal.

Special Cable to THE New York HERALD.
Copyright, 1929, By THE New York HERALD.
New York Herald Bureau,
Berlin, May Is.
The hope for international-notably
American-loans has diminished consid-
erably due to the absence of any posi-
tive propositions and to the declination
of the United States to participate in
the Hague conference. Germany ex-
pected to begin the delivery of manu-"
featured goods to Russia upon the ne
gotiation of foreign credits. ''the only
hope for Germany's rapid economic re-
covery," according to Hans Kraemer,
leading manufacturer and vice-president
of the German Economic Parliament.
who added that the receipt Of Anglo
American credits would enable his coun-
try to participate actively in rebuild
ing Russian industry.
German banking groups are seeking
outside support for a Russian loan. The
Warburg and SHINES interests are
| especially active, but have not had a
favorable response in Dutch or Ameri-
can quarters. The Soviet Government
/ is pressing the German Government to
make the. Rapalo treaty reality
| through material help.
German firms refuse to act alone now
that the United States refuses recogni-
| tion of the Russian Government until
the Soviet completely renounces COM
munism. Spectators on the local
Bourse are profting by Finance Min
lister Hermes's visit to Paris to spread
false rumors. typical Of which Is re-
port that ]. p. Morgan has in his
pocket a complete plan for loan in
accord with Germany's desires 1t was
| tal hA
ready to arrange for 5.000.000,00O
mark credit.
American bankers visiting Berlin say
that the situation does not Justify that
| much hope exists for loan to Ger
many. They doubt whether America
will participate in a loan which the
coming Paris conference may recon-
mend, and point out that America can
not lend money while her troops occupy
the Rhineland. with the possibility o'
| sanctions hanging over Germany. They
also say that the German Government
! has promis I'd no guarantees sufficient to
attract foreign capital.
| Swiss and Dutch fnanciers have ex-
| pressed similar opinions. The Dutch
hint that their Government will not
participat, in any loan that might be
arranged in Paris. adding that much OF
the loan talk is premature.
Indicative of the absence of firm
financial basis In Central Europe is the
fact mat many filanciers pin their hopes
upon the random remarks Of this or that
American banker
| ( Herr Kraemer. who was a member of
the German economic delegation to
Genoa, said that he found there a well
come change in the attitude regarding
Germany.
1.-The British" he said, were cmphat-
| jpa V a. n
which would lead downward to Euro
pean economic collapse. The French
recognized the same principles, half ad-
mitting that political power cannot domi-
nate the fundamental economic laws.
| Both agreed that European reconstruc-
tion involves floating large loans. in
which Germany should be included"
Herr Kraemer welcomed the French
inclination to seek an understanding di-
rectly with the Germans, adding: Ger
man and French industry must work
hand In hand. but I doubt that the
French ambitions to dominate and con-
troll the price pools OF Central Europe
may be realized
He with other manufacturers, In
speaking of the kind of loan they would
regard as acceptable for Germany
| agreed with DIR. Andreas Hermes, the
Financial Minister. upon four or five
billion gold mark short time loan for the
payment of reparations. Such loan
they said. should contain the possibility
of conversion into a larger and long
time loan. They also favored the Berlin
Governments proposal 20 devote part of
the customs receipts to meet the interes.
payments.
Furthermore. the Germans are seek
ing radical revisions of the reparations
terms. Karl Fuerstenburg, director of
the Berlin Trading company. said to
| THE NEW YoR HERALD correspondent
"Germany must resist accepting a loan
where Germany's outside reparation oD-
legations are left in their present ex-
cessive form. A loan under onerous con-
ditions would be moro harmful than
beneficial. Germany should enjoy a
moratorium in the interest payments on
such a loan for at least three years.
with three more years before beginning
amortization"