The New York herald., 1922-08-06
General, Opinion Demands
There Shall Be Reduc-
tion In Reparations.
INDORSE BALFOUR NOTE
Believed Poincare Can Be In
duced to Hold Off on
Penalties.
Special Gable to TIE NYw YORK HEmALp.
Copyright, 1879, by THE NEW York HERALD
New York Herald Bureau.
I0pd0n Aug. S.


Copyright, 1893, by THE NEw YoRK HEaArp
New York Herald Bureau.
London. Aug. 5.
Pessinistic observers here assert tha
the Government apparently has con
Ceived no way out Of Europes economic
difficulties through the Premiers' con
ference, which opens Monday.
Were conditions as serious on thai
August bank holiday in 1914 as the.
arc to-day. we might have been more
prepared to expect Armageddon." a vet
eran official told THE NEW YORK HER
AID correspondent.
Garvan in the Observer paints
gloomy picture. '"The logic of the whole
separations policy so far pursued is
working out in Inevitable collapse and
Europe is near bankruptcy and not too
far from the war. as a result or four
years OF suicidal vindictiveness and
downright economic ineptitude."
The burden of talk in official circles
Is that II France is only reasonable and
promises to pay a quarter of its debt
TO England. the share required by the
necessity for England paying America.
Germany, the crisis can be passed.
Most financial observers here, how
ever. firmly believe that unless definite
scaling down of repars tions is agreed
upon. the mark will follow the crown
and the franc follow the mark. and
Berlin. or possibly even Paris, will be
reduced to the condition of Vienna.
Through the mixture of developments
preceding the conference. however. one
thing is clear. The Government is sorry
that the Balfour note was construed
as an effort to beg off the American.
debt, and Sir Auckland c. Gcddes. the
British Ambassador to the United
States. who Is returning OH board the
Mauretania to-day. has been instructed
TO do his utmost in Washington to coun-
teract that impression.
George Harvey. the American Am.
oassador. meanwhile is maintaining
close telephone touch at his retreat
IN scotland, and stands prepared to
hasten here ona moments notice
should American interests become in
volved in Mondays discussions. 1t Is
not believed now, however. that Ameri-
ca will be affected
Downing Street has got pretty good
iCes. through Senator Borah's and other
American utterances. what is needed in
the way OF settlement, even in the way
of disarmament. before America comes
In. There is little possibility Of reach
ing such complete agreement in the
present meeting. however. The best
that can bo hoped is that some modus
operandi along these lines can be agreed.
upon. whereas the better financial con-
troll which Germany has established. as
some evidence adduces. leads the French
TO believe that they will sacrifice no
vital safety in approaching the discus
sion of disarmament
Some satisfaction is felt in that NJ
Poincsre's sanctions are to be enforced
against Germany from noon to-day. Ii
is pointed out that they cannot very
we'll be effective before Monday. when
the French Premier may be induced
even to modify his orders that clearing
houses suspend dealings with Germany
or at any rate persuaded to enforce no
further measures until. "a common allied
plan Is formulated