The New York herald., 1922-06-08
Reparations Commission
Votes Them Free Hand
to Suggest Plans.
BUT FRANCE OBJECTS
Decision Lacks Value, as
Final Acceptance Must
Be Unanimous.
AFFECTS BASIS OF LOAN
Situation Said to Be Unsatis-
factory to J. P. Morgan and
His Colleagues. ~


Special Cable to THE NEW Toax HrsAIp-
/ Copyright, 1879. BY THE NEW YoRK HnsALD
New York Herald Bureau.
| Paris, June J..
The project OF an international loan
to Germany is oscillating tonight be-
tween abrupt and complete abandon
ment by the international bankers of
all further consideration Of the SUBJ
ject, as sign to France that her pres
ent attitude regarding Germany's pay
ment Of reparations makes such nego-
tiation fruitless. and a continuation of
their labors on more extensive scale.
under authority given to-day by a
three to one vote in the Preparations
Commission. The vote against the pro-
posal was cast by the French repre-.
sentative.
This investigation by the bankers
would include the advisability Of re-
vising the present system OF payments
by Germany. as we'll as the total
reparations, but with the realization
that any suggested revision as tho
basis for such a loan would not re-
ceive the unanimous approval Of the
commission.
4 BY to-day's decision Of the Repara-
tions Commission the bankers in con-
ference here received authority to "go
as far as they like" in examining tho
London agreement and the payments
it prescribes. as well as Germany's
, capacity to fulfill them. The decision
is most unsatisfactory to such bankers
as j. p Morgan, and the general i'm
preston Is that the bankers will de-
eide tomorrow that there is little use
In further discussing the loan question
for the present.
French for 'Hands on"
AS was inevitable. international
finance has come into violent collision
with French politics. The French
member of the commission by his vote
showed France to be for a hands of"
policy on the amount and even the
schedule of payments. Belgium. how
ever, sided with England and Italy in
agreeing to give the bankers authority
to examine the present arrangement
fact which Is significant as showing
that France can no longer count upon
her devastated ally to maintain with
her an unbreakable front on the ques-
ton.
To-morrow's decision Of the bankers
, seems to rest largely IN the hands Of
, Mr. Morgan, who, with The potential
; lending resources Of the United States
behind him, is the overshadowing per-
sonality here.
Mr. Morgan Is understood tonight 70
question seriously the advisability Of
the bankers going on under the present
conditions. on the theory that the moral
effect of complete breakoft of the
present discussion can do more IN the
end toward curing the present impos-
sible situation than for the committee
to continue its seemingly futile delibera-
tions.
Il shouldn't say the conference yet
has reached an impasse." said one Of
the highest authorities tonight But
the bankers committee finds itself In the
face of a decision which gives no en-
couragement, and Is largely valueless
because any final acceptance OF our
recommendations by the commission
: must be unanimous. and this seems i'm
possible. Only one thing is certain. and
that Is that that the present situation
. cannot go on indefinitely"
!, French Fear Reopenfng Treaty.
Although the French newspapers
have persistently represented the bank
ers as having asked the commission
whether a reduction in the reparation
total would be permissible. the bankers
did not go so far as that. They mere
ly asked the commission whether their
) powers might be enlarged TO include
payments and the possibility OF their
examination OF the present schedule OF
rearrangement. but France considers
that this would be opening the door to
revision OF the Versailles treaty with
out any compensation in the form OF
cancellation of allied war debts This
VI. Poncaire has indicated as the poll
: icy upon which the Government intends
! TO stand emphatically.
u. $. Observer states Position.
To-day's meeting OF the commission
! was OF most interesting and critical
character. Roland w Boyden. the
American unofficial observer while not
voting. took part in the discussion to
the extent Of making short emphatic
statement that the American public
would not wish to see the bankers ham,
pered in any investigation OF the repa-
ration problem they might choose TO
make II was a statement which seemed
! 70 impress all his colleagues save NJ.
Dubois.
{ The feeling in American circles Il that
! Il Is useless to go on In view OF the
! French attitude. Lacking the slightest
encouragement that the United States
will cancel allied debts. the situation on
the loan project appears hopeless 70 Eu-
ropeans. Even the temporary expedient
OF small loan apparently is not favored
by Mr.. Morgan, who is understood to be-
leve that something drastic must be
J done TO convince France OF the necessity
j of modifying her present position. IL sta