The New York herald., 1922-06-11
FAILURE OF GERMAN
LOAN PLAN Laid TO
FRENCH ATTITUDE
Refusal to Join Allies i'm
ReparatiOns Inquiry Ends
Bankers Farley.
MAY NOT MEET AGAIN
j. P. Morgan Issues State
ment in Paris Explain
ing Situation.
TELLS OF ? CONDITIONS
Neither Being Complied With,
Further Discussion USE
less, Says Financier. Fl
TELLS OF ? CONDITIONS

Special Cable to THE NEW YORK HERALD.
Copyright, 1929, bv THE NEW YORK HEaALns I
New York Herald Bureau.
Paris. June 10. \
There is no hope for many months
of an international loan to Germany
TO help in settling the reparation
problem and stabilizing tie worlds
financial situation upon which It is
weighing so heavily. With evidences
of profound discouragement and with
an indirect slap ut France for her atti-
tude. the bankers committee sus-
pended it's labors to-day. declaring in
long report to the Preparations Com
mission tEat with great regret it had
reached the conclusion it could not
advise such a loan as feasible.
j. p. Morgan, in an individual state {
ment. emphasized this view of the ma
jority of the members of the commit !
tee by explaining that, in kis opinion.
mo loan to Germany of the character
necessary in the situation could be
offered to and purchased by the Amer
ican investor" Thus the door is shut
in tie face of French hopes of months
standing that international finance
would accept the present reparation
arrangement as workable. and come
to the assistance of France.
Conference at an End.
Though the adjournment OF the corn~
mittee is called merely a suspension. the
| bankers conference virtually stands dis
solved. Only upon the unanimous invi-
tatiol Of the allied Governments with
France therein showing that she would
accommodate herself to the wishes Of
the other nations in modifying the
present schedule. will the present mem-
bers of the committee ever consent to be
convoked again.
The report issued last isit, on the
highest authority on the Quail d'Orsay,
that the committee adjourned only ,or
three months proved to be entirely
erroneous. The committee suspended
from date which means that any
further consideration of the present
quest on must simply wait upon the
wishes and the acts of the French Gov
ernment
That the French Government has in
no wise modified It's attitude since
Wednesdays split vote in the Repara-
tons Commission Is evident, however In
the refusal of the French banker Sergent
to sign the bankers report, saying that
he could not contemplate any dminution
of French treaty rights and dsputing
the committees competence to examine
any notifications thereof.
As appears in the report 20 the
Reparations Commission, the bankers
found themselves utterly una BILE from
the beginning to make any Ieasonsb BILE
headway. Without desiring themselves
to prescribe any new capital sum, the
bankers did entertain hopes of exarnin-
ing the system Of annual payments ana
Germany's capacity TO pay them. with
the idea OF making changes therein ard
leaving the axation Of the capital sum
for the future. Upon sifeh notifications
the bankers thought tonight loan
hight be arranged.
Hopes Upset. by France.
Frances dissenting vote TO the re-
quest to examine the schedule of pay
ments. as described in THE New YoRr
HERALp's dispatches last "Wednesday,
convinced the bankers of the futility OF
their hopes in that direction
What was hoped by Mr.. Morgan and
by the majority Of the other members OF
the committee was that France durirg
these discussions. would virtually place
her affairs in the hands of the worlds
bankers. who are not without sympa thy
for her. and by agreeing to a unani-
nous decision according them the power
TO examine the present reparatioa
schedule would facilitate a settlement,
I'm the confidence that countries like
America and England would see he-
through and secure for her from Ger-
many. In the end, more than the impair
TALLY minded bankers believe she can
J get by any other course OF action.
PARIS, June 10 ASSOCIATED Press) -.
The International Loan Commuters
final report TO the Reparations Conn
mission, after recitlnge the commissions
original instructions and quoting the
texts OF the bankers question and the
commissions reply regarding the en-
largement OF the scope of its work.
gives the committees Views under the
heading: The position of the COM
mittee in relation to the commission
The report then continues ION re-
ceipt of this reply, indicating that the
chief creditor of Germany did not de-
sire that any recommendation should
be made which would involve the pos
sibility OF new limitations on Germany's
obligations. the committee decided thac
they could not usefully for the time be-
ing continue their inquiries and that
they ought therefore 10 confne them
selves to furnishing n reply to the ques.
ton originally addressed to them. taken
In its more restrictive sense. and at
the same time give their reasons for
this decision
AT the outset the committee desires
TO make its own position clear be-
yond the possibility OF misconception.
The members OF the committee were
invited BY the unanimous decision OF
the Preparations Commission to come 10
| Paris in order that they might give
technical advice as bankers on the con-
dtions on which an external loan
could be. raised by Germany. At no
time have they had the wish to usurY
wider functions.