Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-10-30
PUBLICITY WHIPPED
FRANCE INTO LINE.
LAWRENCE ASSERTS
BY, DAVID LAWRENCE
(Leased Wire Service to The JournAl,l
Copyright, 1921

Until Secretary Hughes and Lord
Curzon, British secretary, decided to
make public their exchange of notes,
the French were against any inter
ference in the reparation situation.
But in the face of the British invi-
tation and American acceptance, the
French could not afford to refuse a
parley.
While it is known that the French
are not optimistic about the outcome,
and the situation is still capable of
getting in a tangle, the view here
is one of qualification that at last
a break has come in the deadlock.
In order to understand the next
moves, it is necessary to go back 10
June, 1922, when the Identical pro-
Cedure which is about to be followed
in the appointment of a commisSio on
of experts was wrecked by The
French after the committee got TO
work. Then as now the eXpeI is
were invited to Paris by the repaia-
tons commission, then as now they
were named not by governments Of
ficially but by the reparations COM
mission, and they were only to give
technical advice. Inasmuch as ]. p
Morgan will be invited once more,
or some member of his firm, to sit
in the conference, his statement at
the conclusion of the last meeting
of experts is Of the greatest signifi-
canoe today. 1t represents the point
at which the start must be made. He
said then in a carefully Worded an
pouncement:
II came purely as private citizen,
holding no authority from my gov
eminent, to discuss matters under
their control, but as a banker en-
gagged in the distribution of security
in the investment markets of The
United States insofar as their conf
ton might permit.
German Prosperity Vital
''I explained at the first meeting
Of the committee that there is no in
terest in the United States in loan
to Germany per Sc. There is, now
ever, in my opinion, growing ap-
probation in the United States OF the
fact that that it's own prosperity is
to a degree dependent upon the pros
perity of the allied nations and that
the prosperity of the latter is, in a
large degree, dependent upon the re-
Mobilization If Germany's credit.
II consequently believed that the
American banker and investor could
be interested to a substantial degree
in the purchase Of German obliga-
lions if two fundamental conditions
were satisfactorily established:
"First-Such a. loan should be at
the request and would be for the
benefit of the allied nations. This
could be in no way better expressed
than by the active cooperation of
the private bankers of the allied
countries in distributing the Ger
man securities to their nationals.
Second-Through the technical
security to be given by Germany and
the rehabilitation OF its internal IL
nancial situation, Germany should
clearly show a desire to meet it's OBJ
legation in the hope that by the full.
f1llment of that obligation it could
re-establish its credit as one of the
commercial nations of the world.
Shortly stated, therefore, the two
fundamental conditions of American
participation were, in my opinion,
Unanimity among its leaders and
the establishment of the credit of
the borrower"
Mr.. Morgan then pointed out that
a dlfference of opinion had arise in
the committee as between the French
and English texts of the instructions
from the reparatioMs commission as
10 the scope of the parley, the dis.
cusslon ending in a definition by the
PREPARATIONS commission to the effect
that the committee should discuss all
questions having a bearing on Ger
manys external credit. The French
member dIssented even from that.
linen official statements began to be
made In Paris saying the bankers
committee was attempting to ue-
crease the amount of the German
obligation and that "this could not
De tolerated by the French govern.
ment.''
Sought Only Solution
The committee had never
thought" said Mr.. Morgan, land in
this [ agreed completely, that it had
any power to pass upon the sums
owing by the German government
but merely that it had been re-
quested to advise the reparations
commission as to a basis upon which
Germany could raise a, loan. There
mad been no discussion of the cap
ltal amounts of Preparations but only
OF possible arrangement of the an
nual payments. These annual pay
ments either in cash or in kind are
the only method whereby Germany
can effect payment of it's debts.
Il am now and shall continue to
be ready to do everything in my
mower fn aCSiSf in
the problems which confront the
economic life Of Europe but 1 be-
lieve that in so far as such prob
lens depend for their solution upon
an international loan to Germany,
in which the American investor
would take part, the solution is not
possibly without a general settle
nent of the reparations question.
Undoubtedly a settlement of this
question involves the consideration
and arrangement Of many other
questions which must be settled be-
tween the governments in order to
arrive at the unanimity required for
the first condition of loan. I shall
be ready at any time to return and
do anything in my power when con-
ditions permit and the reparations
commission may DESIRE"
That's the way matters have
rested for more than a year. And
before any encoura cement can be
derived from the acceptance in prin-
ciple by the French of the British
American proposal it must first be
learned exactly what the French
now are willing to discuss. Will
they let the experts fix the amount
Germany can pay? Will the experts
be permitted to say what the penal
ties for non-payment by Germany
will be ard who will enforce them?
The parley's true value will not
be known till the terms Of the invi-
tations by the PREPARATION commits.
sion-which is now dominated by
France-are made known. America
is entitled to representative on the