Evening star., 1922-02-05
OLD WORLD TO SEEK
GREAT LOAN IN u. S.
Action Expected to Be Outgrowth OF
Genoa Parley-deld Vital to
Reconstruction
Reconstruction.

! the first things he will do is to gain
common consent to a policy of peace
with pledges that If any nation or
group of nations should violate this
peace agreement they at once will
lay themselves open to attack from
all others.
II such an agreement can be OBJ
tained, and Germany and Russia sub
scribe, master stroke will have
been achieved, and the good faith of
European nations in their desire to
demonstrated. At least then they
can proceed along definite lines look
ing toward financial and economic
recovery.
The one big plan to be proposed
along this line Is the floating of
great international loan, guarantees
for various portions Of which are to
be given by respective governments.
They as whole will stand by any
scheme of bonding the proposed new
obligation of the continent. 1t is
believed. in European circles at least.
that in case the nations agree to act
in unison and stand firmly behind
any proposed international bond is
sue American financiers will be
ready to listen to Europe's pleadings
and advance a great section of the
funds desired. All nations will par
ticipate in the common loan, but it as
admitted that it is hoped that Amer
ican financiers will subscribe the
greater portion.
With American governmental par,
ticipation in any such financial
scheme. as is still hoped for through
representation at the Genoa parley,
then it might be expected that this
government also participate in the
underwriting of the great issue. Be-
lievinS that this alone will solve
Europe's various difficulties and that
through this alone needed sums for
Germany and Russia can be obtain
ed, it is but natural that European
ears are now sharply attuned to
catch reactive waves from this
country.
One Of the clear-cut deductions
made possible through the trend of
European events is that Germany
must receive substantial aid If she is
to pay reparation sums demanded of
her. Since the most recent German
note bearing upon the subject there
has been much fluster and furry in
circles most affected by the claim
that Germany cannot pay the allies
unless she gets material aid from
without her borders, these tlutters
arising particularly in France and
Belgium. Therefore they are advo-
eating the International loan scheme,
and France has formally announced
her allegiance to the Cannes agree
ment which fostered the economic
conference in Genoa.
The German internal situation has
been further muddled during re-
cent days by virtue Of the conflict
which has arisen between the cen
trists, representing Hugo SHINES and
other industriahsts, and the Wirth re-
gime. The industrialists, it is de-
clared, have withdrawn assent to the
Wirth taxation program since Wal
ter Rathenau was made foreign
minister, the latter being a deadly
enemy Of SHINES. This withdrawal
makes Wirth's political troubles of
the past seem trivial. and most GER
tainly makes 1t difficult for the Ger
man government to stand on its
Ia test reply to the allies on reparations,
that reply being predicated upon the
mark loan to the government without
interest. The tax fight will react
along other lines. and there may be
some sort of adjustment as there has
been in the past, but it is admitted
any scheme of paying German repara-
tions without the full backing of the
centrists and industrialists is doomed
to failure.
There is some danger in the rail-
way strike which has been gripping
Germany for the past several days,
and the government. possibly feafing
the consequences Of widespread dis
orders. is dealing with the situation
without gloved hands.
AS a matter Of fact, the political,
Industrial and social conditions of
Germany no not warrant prolonged
disorders affecting tens of thousands
of workers. Such disorders might
undermine the government and lead
the way for the advancement of the
old molarchial interests, which are
known to be biding their time.