The New York herald., 1922-07-09
BERLIN ASKS ALLIES
FOR A MORATORIUM
Continued from First Page.

while refraining from official comment.
allowed It to be known that in their
opinion France must make concessions
to the German republic In the matter
of reparations before the condition can
be restored.
So far as could be learned, no i'm
portant information was received by
the State Department to-day regard
ing the German crisis. but 1t is known
from recent confidential dispatches
from American representatives In Ber-
lin and other parts Of Germany that
there is grave danger Of the present
Government falling and that even the
existence of the republic is threatened
as a result of the financial stress and
the politicaY disturbances growing out
Of the assassination of Foreign Min
lister Rathenau.
American Attitude.
It may be stated upon reliable author
ity that unless the attitude of France
toward the payment OF reparations. by
Germany is altered by concessions
which will enable the German Govern
ment and people to offer good security
for a foreign loan no money will be
forthcoming from the United States.
Z The American Government Is watching
developments In Germany with undis-
guised interest. 1t has instructed its
representatives to keep this Government
advised Of all important occurrences
there, but it is watching with every Bit
as much interest the reaction OF Eng
land, and particularly France. toward
the present crisis, brought on by the
alarming drop in the mark following the
murder of Rathenau.
That the confidence of the German
people themselves, as well as otners
outside, In the present stability OF the
German Government has been shaken
and that this confidence is the principal
cause for the fall Of the mark Is the
belief in financial and diplomatic circles
here and at the State Department.
But It is believed generally by Wash
inston observers Of German occurrenc ces
that the economic troubles of the coun-
try are at the bottom Of everything and
that political unrest will not be allayed
until financial remedies are applied to
the situation.
It would be an economic inpossibility
for the American bankers to participate
in big loan to Germany-and American
participation In such loan, as un-
derstood by the Allied financiers. would
mean furnishing all or nearly all OF
the money-so long as Germany Mas
nothing to offer for credit. Unless
France is willing to permit Germany
to postpone payment of reparations. so
that Germany may have something to
offer as security for a loan. the situa-
ton will 20 from bad to worse, in the
opinion of Government experts here.
With German money for years to
come tied up by reparations agreements
and demands from France and with no
prospect Of her being able to raise ad-
ditional funds to pay interest on out.
side loans, and even danger amount
ing almost to certainty of her being
forced to default on the reparations
payments, Washington observers can
not understand upon what theory
Europe should look 70 this country for
aid In the crisis.
Mark Drags Down Franc.
The hope was expressed. in semi-offi-
cial circles to-day that France would
be brought by the present critical sit
uation in Germany to a realization OF
what It will mean to her II Germany
collapses. The fall of the German
mark Is dragging the French franc
down along with it. With Germany
bankrupt there will be no money fol
reparations. Frances only recourse
would be to take more German terri
tory, and even that would not help the
financial situation. Furthermore, II
that is what France Is driving at, 1t Il
pretty we'll understood here that Eng.
land will interpose an objection strone
enough to prevent 1t.
| Regret was expressed In official cir
cles here that the financial crisis ir
Germany was encouraging the mon.
archists to further efforts to regair
control of the German Government
From that point of view. the United
| States would be ready and willing Il
help the German people to keep theil
republican form Of government, bu
there must be a change In the attitud,
of France toward Germany to make ef
fective any aid which the United States
might be willing to extend.
+, The State Department did not khav,
any cable advices to-day regarding TIL,
| possible failure Of Germany to meet III
payment of s0.0o0.000 gold marks to tn,
Preparations Commission, due within
| the next week, but 1t was presumed
| that the conditions are such as TO max,