The New York herald., 1922-12-15
MORGAN AT WORK
Washington Regards
Plan Favorably to Ex-
tent U. S. Bankers
Can Participate.
MUST CUT INDEMNITIES
Credits Put at 81, 500, ,W0,-
600. of Which Part Would
Be for Reparations.
REST TO FEED GERMANS
U. S. Feels Teutonic Nation Is
Near Ruin and This Is
Sole Remedy.
REST TO FEED GERMANS
spec,nl Dispatch 10 Tur NEW YoRK HsRAIp.

Special Dispdtch 70 I'VE NE" iohh i'HhAhp-
New York Herald Bureau.
Washington. ID. C., Dec ia.
The floating of an outside loan OF
approximately $1,000, 100000 through
international bankers is under con-
sideration as the only visible way OF
saving Germany from economic col
lapse and of staving off the repara-
tions crisis.
American bankers and the United
States Government are taking a di-
rect interest in the loan project, and
Il was learned to-day that j. p. Nor
gan's visit to Washington and his
conference yesterday with Secretary
oe State Hughes was connected with
the reparations problem, the crisis in
Germany and the plans for a great
loan.
AS American bankers are expected
to participate in any feasible loan "
was indicated that Mr.. Morgan, who
represented the American group at
the bankers conference in Paris, Is
seeking the duElCe VI SiC S0AsS -
partment.
Mr.. Hughes refused to say what
he discussed with Mr.. Morgan, but
there is evidence that the loan ques-
tion has again come into the fore
ground, that the international bank
ers are considering raising it and
are seeking the cooperation of their
governments.
Government Favors Loan.
A loan is regarded tavorably by this
Government 10 the extent that Amer
lean bankers can participate legftf-
mately but only on condition OF
scaling down of reparations as sug-
gested at the conference of Premiers
in London. 1t is believed that II
France should accept a reduction OF
reparations the bankers will make
the loan.
Part of the loan would be for In
ternal use in Germany and part go TO
France for reparations. The sugges-
tlon made by Germany that the coun-
tries getting a portion of the money
should guarantee at least that much
Of the loan is regarded favorably by
American officials.
Reports OF Germany before officials
of this Government reveal more
serious state than generally realized
The reparations question is acute and
the Germans are near financial par
alysis.
An important consideration which
initiates against the extension OF
credit is that the Germans have placed
virtually all transportable assets out
OF their territory. The total OF these
assets reaches 4 tremendous figure
They are frozen. as all the possible
borrowing against them has already
taken place. In no sense are they
available as credit.
Germanys collapse. according to
officials here. cannot be postponed be-
yond next spring unless something IS
done meantime II will have arrived.
il is pointed out, when Germany can
not import food, when hunger begins
and when the mark is valueless--and
then food riots. This is the picture
his advisers are placing before Presi-
dent Harding.
Needs Hinge wheat Imports.
Germany will require from 10000
600 to S5.OO00.00O bushels Of wheat by
spring and there is nothing now In
sight by the way OF credit on the
strength OF which this grain could he
socurcd--and as one official put 10.
there is no telling what a starving
people viii DO"
Action before this IS the advice OF
the United states, and every effort OF
the Government is directed toward
getting the Allies to realize this be-
fore Il is TOO late The view taken
since President Harding entered the
White House Is that the solution OF
the problem lies IN the settlement OF
rcparafions such settlement based
on reasonable reduction without which
payments will cense. would lead Il Is
urged here. 90 a revival OF confidence.
and steps could be taken to stabilize
the mark. whose fall has accelerated
the present Generalization
While an outside loan Is receiving
consideration Il Is not thought likely
that definite steps toward a concrete
plan wili be taken until after ths
meeting of the Premiers on January 2.
when the reparations question will be
once more attacked
IL France has assurances that
loan can be fioated IL is believed Pre-