Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-12-21
PLANS FOR EUROPE
HINGE ON PROBLEM
Of GERMAN DEBTS
u, S, Acting Solely as Infor-
NAL and Unofficial Media
tor Between Signatories of
Versailles Treaty
BY DAVID LAWRENCE
Ueased Wire Service to The Journal
Downright, 1920

tC0pyrlSht, l922.)
WASHINGTON, Dec. 2O.-J. P.
Morgan's statement that he told the
German ambassador that prospects
of a loan from international bankers
were no nearer than they were last
June, has cleared the air of rumors
and fantastic stories about aid to Eu
rope.
Mr.. Morgan said what the depart
ment of state was unable to say in
answer to the unfounded fears of the
''irreconcilables" and others who be,
ileVe some RADICAL departure in
American policy was forthcoming.
But Mr.. Morgan's announcement
really has another significance. 1t
means that he has told France that
aid from the allied bankers can not
be given unless the program drawn
up by the international bankers com.
mittee last June is revised.
The key to the future lies in the
carefully worded document issued
then by Mr.. Morgan and his col
leagues. Will France permit her
member on the reparations commits
sion to vote with the majority and
issue unanimous invitation to a
bankers committee again to devise
ways ways and means of assisting
the general economic situation IN
Europe?
The bankers in June incurred the
disfavor of the French by pointing
out the obvious, though unweIcome,
fact that, until there was some mod
GRAFTON on the part of France toward
the enforcement clauses of the Yer
sailles treaty, and some limitation OF
Germany's liability was made cor.
sistent with the opinion of inves.
tors throughout the allied world, ii
was hopeless to talk loan.
Bankers Independent
The United States government is
not party to these informal nego,
tiations of the bankers. Mr.. Morgan
went abroad as a private citizen,
with no commission, official or un-
official, from the American govern
ment.
He was invited to sit with the in
ternational bankers committee and
render advice to the Preparations
commission A dispute arose as t.
! the text of the invitation to the
bankers, tn" English and French
| wording being somewhat at variance.
Anyway, the French saw the
bankers committee as a body at
! tempting to usurp the functions OF
the Preparations commission, and as
endeaVorinS to decrease Germany's
PREPARATION liability. Under such cir,
cumstances, the bankers committee
accomplished nothing except to get
forth to the world It's views which
are as valid today as they were
/ then.
Unquestionably the United States
| government. is in complete accord
with the statement made by tn:
bankers committee, namely, that the
fixing of the reparatiOns must be
done first before any private loans
can be considered.
! The American government ha-
been hopeful that France would re-
viVe the invitation to the bankers
committee. and that, at the same
time, diplomatic influence might b
cautiously eXerted TO secure an
agreement between the allies to fore
go enforcement of certain sections of
the Versailles treaty.
NO LOAN POSSIBLE At
THIS TIME, SAYS MORGAN
NEW YORK, Dec. 20.-J. 2. Nor
gan & Co have issued a statement
declaring they had notified the Ger
man ambassador to this country
that it was impossible for us to
discuss or consider a loan to Ger
many unless and until the repara-
tons question was settled"
The statement follows:
Or. Otto Wiedfeldt, the German
ambassador, called on Mr. Morgan,
Saturday, to make inquiry as to the
possibility of our undertaking to as
sist in floating a large so-called in
ternational loan to Germany. In his
reply Mr.. Morgan adverted to the
statement he had made following the
sittings of the bankers committee
last June, and in effect told the am
bassador that our position was ex-
actly the same as it was then.
Preparations First
"IIe Informed Dr. Wiedfcldt that,
while greatly desired to be of serv
ice to the general situation, never
theless matters had manifestly
reached such a point that it was not
possible for us to discuss or to con
slider a loan to Germany unless and
until the Preparations question was
settled"
Official denial was made Of reports
that the Morgan firm had presented
"a plan" for the settlement of the
reparations problem to the Washing
ton administration.
Mr.. Morgan was a member of an
international committee of bankers
which met in London last June to