The Washington herald., 1922-05-29
Berlin Would Keep Half
OF Billion for Her Do
mestic Use.
TEUTONS ACCEPT
CURRENCY REFORM
France Hopes All Funds
Will Be Devoted to
Reparati0ns.

PARIS. May 2s.-Tbe fight over
the division Of prospective inter-
national loan for Germany is under
way already. The first loan. which
will be around $1,000. .O00. 900. will be
the biggest bank roll that Europe
has gotten its hands on at ore time
since the war The Morgan COM
mittee Of bankers will draw up a
plan for a series Of such loans in
echelon over fifteen or twenty
years. If the first goes well. others
viii be foated later.
1t will be gradual conversion
Of the German war debt into COM
mercial loans. The loan Is pri-
marily and ostensibly for Germany
ito he applied to redemption in
part capital OF the reparation debt, %
as a resolution of the reparations
commission. under which The bank
ers are acting. reads
France In Urgent. Need.
The reparation debt rNerred to is
| the l. ndon schedule. which sets
the debt at $4,000 00O. .OO0 gold
| marks. France. belgium and Italy
need the reparation money urgently.
and hope and expect that practically
all the money raised by the loan
Will he devoted to reparations. In
directly II would be a loan to these
countries.
The loan would apparently no,
Incl ease the reparations payments
for this year. but would simply in
sure them for 1922 and 1928 For
1922 Germany has been allowed a
moratorium Of about 1000. 900. 900
gold marks below the 1922 London
schedule Of payment. actually pay
1 ing 100000. 600 gold marks cash and
| l.450.0o0.000 gold marks in mer-
cha ndise. On May Is Germany had
really paid 350.OOo,oOO gold fmark.
In cash and proportionate.amou
in merchandise.
Wants To Keep Half,
This moratorium was granted on
lcondition that on May 81 the Ger,
man government would have carried
out financial reforms. which Ger.
many has agreed to during the past
several days. Otherwise the London
schedule would automatically come
into effect.
With it's share of the interna
| tional loan Germany intends to nav
reparations during 1929 and pos
sibly 1923 and thus relieve the
heavy strain on the German budget
-otherwise the German taxpayer.
Or. Bergman. German delegate to
the Morgan committee Is asking
that Germany be allowed TO spend
at least one-half of the loan to
improve the economic and financial
condition of the country. entirely
apart from reparations.
Dyes for u. =. Held Up.
Specifically Germany wants to
use the money to buy wheat. cotton
and raw materials from Americs
and other products from the British
Empire. Germany. therefore. does
not wish the entire loan set aside
to guarantee reparations payments
this year and next. one result of
which might be heavier payments
next year.
The American share of German
reparations dyes will be withheld
until after June 30, according to
arrangements now made by the rep
arations commission. The American n
government has failed until now
to designate officially an organiza-
tion to receive the American share.
This share amounts to 5lz per cent
OF the entire German production.
delivered at German wholesale
price. and shipped from a German
port without charge. The value of
German dyes Is that America has
been taking only those dyes not
made by American manufacturers,
so their value can be calculated
rather by the goods Into which they
go than the market value. which
is about S3.000.000 annually.
| Under a treaty Germany delivers
one-fourth OF the entire dye pro-
| duction to the allies for a number
OF years. and America and Great
Britain are allowed % per cent of
the delivery and the other allies
are allowed less.