The Washington times., 1923-09-13
LOAN Of BILLION
To GERMANY
R|D|CULED
Alvin w. Krech Says Mark
Must Be Stabilized and Rep
aration Problem Solved.
BY w. s. COUSINS.
Copyright. 1923. by Cosm politan
News Service

News Service)
NEW YORK, Sept. 13.-Character-
izing as premature and ridiculous
the suggestion that the international
money market should negotiate a
"billion-dollar loan to save Germany
from economic collapse" Alvin w.
Krech. chairman of the board of
directors of the Equitable Trust
Company or New York, said today
that only the definite settlement
of more pressing problems would
open the way to consideration of q
loan.
1T is obvious to any one who has
carefully studied the German .,.tua-
tion,' said Krech, that until the
reparation problem has at least
been tentatively solved, no banker
would seriously consider a loan to
that government. AS L see it.,
Germany's tasks are fourfold:
Il. Repara tions-amount and meth
cd of payment. This might also in
volve the matter Of a temporary
moratorium.
2. Balancing OF the home budget.
This will doubtless involve The de-
vising of a more perfect system OIL
taxation than any that has been in
operation SlnC0 the war.
Reform Of Currency,
80. Currency reform. The deIuged
mark has gone over the dam, and
can never be revived. Some new
basis of currency sterilization must
be introduced, with a fixed relation
to gold, of which the country has,
according to reliable information,
about 100000, 900.
"a. Negotiation of foreign loans;
not until the first three items have
been satisfactorily adjusted can Ger
nIany expect to make q successful
appeal to the international loan
market.
while it is true that the Aus
TRAN loan, arranged through the
instrumentality of the League of
Nations has been a success, there
is no parallel in the condition of
Germany with that of Austria. The
problem Of the latter country was
wholly an internal one, and its OBJ
legations to other countries a neg
ligible factor. With the assistance
OF this loan the Austrian govern.
ment. has shown the world that it IS
possible to stabilize a badly inflated
currency, and to go along doing
business with it"
Krech emphasized that. SO long
as a currency could be maintained
at a fixed relation to gold, it could
perform its proper function.
Crown Now Stable.
The Austrian crown, for example,
which normally is equivalent to
20.3 cents. is now rated at $14.25
per million crowns. But it Is sta
bilized at that rate, and the bust
ness man knows that it will possess
the same value month from now,
or until it Is supplanted by some
other form OF currency, he said.
Germany's currency problem is not
hopeless. but requires much more
strenuous measures than Austria's,
he added.
Aked regarding the possible source
of security for an international
loan, Krech said:
Speaking only in the abstract,
I think sufficient security could be
produced fully to cover It, Con-
slider that you have a German fed.
GRAFTON entirely free of internal
debt; all or most of its political
divisions equally situated, and all
Of the debts of the big industrial
wiped off the slate by
H..
vent Germany with it's plants and
resources unimpaired,
has more substantial facilities for
than ever before Iii its
history. Its capacities for produc-
ton have been increased through
the improvement of its plants. it's
it's canals and it's bridges,
Its capacities for production have
been increased through the inn
provement of it's plants, it's rail-
roads, it's canals and it's bridges,
and from the bankers' standpoint
it's credit rating should be high"
Krech said he saw announcement
in the latest cabled reports of
negotiations between
France and Germany, with the
evacuation Of the Ruhr as the pos
sible objective.