The Rock Island Argus and daily union. (Rock Island, Ill.) 1920-1923, 1922-12-16

Cabinet Discusses Eco
nomic Stress Affecting
Sister Continent.
By DAVID LAWRENCE.

Copyright, 1922, by The Argus.)
Washington, D. c., Dec. 16.-
President Harding and his cabinet
have thus far been discussing two
broad phases of the European situ-
alton: the attitude the United States
government should assume in the
event that France and Great Brit
ain request this country to medi-
ate or arbitrate the dispute as to
the amount of reparation Germany
should pay, and the affirmative
measures that should be taken on
the initiative of America to ease
the economic burdens of Europe.
The idea of an international eco
nomit conference to be held in
Washington shortly after the new
year begins appeals strongly to the
administration which feels it will
make greater headway with Ameri-
can public opinion in the long run
if the conference is held where all
the moves and all the facts can be
seen at first hand.
Ask American Advice.
But an economic conference is an
ultimate and not an immediate
step. The first problem is really
what shape American advice shall
take. For that's what Europe is
asking for. Ambassador Harvey
was applied to in Londoa and there
is reason to believe other powers
asked American diplomatic repre-
sentatives for guidance in other
capitals. Fhe cabinet here spent
its Friday session almost entirely
discussing just what America
should advise.
There is unanimity Of opinion
that the first piece Of advice should
be to- get a definite agreement on
the amount of German reparations.
If France is willing to leave the
fixing of this sum to an American
commission, this country may un-
dertake the task Of arbitrating the
dispute between Frances idea of
what Germany should pay and the
allied view of Germany's capacity
to pay.
Suggested Loans.
On the outcome of that issue de-
pends something more far-reach-
ing, namely the floating Of loan
by international bankers. There
seems to be an impression abroad
that the United States government
can somehow sanction such loan.
This is possible, of course, but
highly improbable. The cabinet
did not discuss the making of a
loan by the government or even the
extension to American private
bankers of anything that might be
construed as a guarantee of moral
support.
The only way the American gov
ernment gets into the picture at all
!! on the matter of foreign loans is to
examine them carefully in the
light Of its. policy of a year ago
which was announced to all bank
ers. 1t required that any banker
or banking firm desirous of floating
a foreign loan, should as a matter
of patriotic interest, lay the prop
osition before the government so
that the latter might interpose its
objection.
Government Must Consent.
There is no law to prevent bank
ers floating any kind of loan they
! want but obviously q government
objection would have as much
weight morally as a limitation OF
law. The administration insists
that loans must be made for pro-
ductive purposes abroad and not
for the stimulation or maintenance
of armies or navies.
It was proper, therefore, for ].
P. Morgan, prime mover in the in
ternational bankers committee, to
consult the Washington. govern
ment to learn IL it had any objec-
ton to the revival of the PROPOSE
tion made a year ago whereby after
a moratorium was declared ON Ger
many's payments this year, q loan
might be advanced to help Ger
many meet some current 0bliga-
tions. Such q loan would be val
ueless IL France Of the allied pow
ers did not give up the so-called
military sanctions provided in the
treaty of Versailles or at least
agree to withhold for a period Of
years the fulfillment OF those Sec
tions Of the treaty. No banker
would consider for a minute the
a. - -