The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1924-08-21
MORGAN'S LOAN
TO GERMANY TO
GET GALS YES
Billion and Half to Be
Total Investment
(speoIaI to Nae Daily workerl


NEW YORK, August TO-
After some hesitation due to
fears over a delay in French
evacuation of the Ruhr, J. p.
Morgan and company has
finally decided to float it's share
of the $500, 100000 separations
loan.
1t is understood that the
United States government will
make an official appeal to the
country to arouse popular sup
port for and subscriptions to
this loan.
Morgan's Man Servant.
Those who have observed closely
the attitude of the administration
point to the fact that Coolidge has al
ready Endorsed Morgan's plans in a
speech the president delivered last
April in New York. Besides, it is
common knowledge that every step
taken by the American unofficial OBJ
servers and bankers at the London
conference was in full accord with the
policies proposed by Secretary of
State Hughes and Secretary Of the
Treasury Mellon.
AS soon as Andrew w. Mellon re-
turns from his European vacation"
the federal government will make
public its acceptance of the program
of support for the Morgan loan. Mr.
Mellon has been charged with the
task of preparing this program for the
administration.
$2oo,ooo,ooo Only Part.
Financiers and political observers
are well aware of the fact that the
initial $2OO,OO0,O0O loan to be foated
by ]. P. Morgan & Co. and other bank
ers is only small part Of the loans
that the United States will be called
upon to fill in order to restore German
industries sufficiently to enable the
Reich to meet the French PREPARATIONS
BILL German municipal securities, in
dustrial bonds and smaller national
reconstruction loans will, soon after
the S100,000,000 reparations loan is
taken up, be put on the American
financial market.
1t is estimated by some observers
Of international finance that the Unit
ed States will be called upon to in
vest total of more than one and a
half billion dollars in German munich
pal, government, industrial, public
utility and railway bonds and securi-
ties. 1t is this likelihood Of so gigan.
tic an investment Of American capital
that has attracted the large number of
leading American bankers to Euro
pean capitals in the last few weeks.
Bankers Flooding Europe.
Only two days ago Charles E.
Mitchell, president of the National
City Bank, the biggest bank in the
world, which is a observation-disclosures
institution, sailed for Europe. The
Guarantee Trust Company, the Corn
Exchange Bank, the Bankers Trust
Company and other leading New York
financial institutions are all we'll rep
resented in Europe today. Besides.
Mr.. Harris, one of the leading figures
in New York Central Railway opera
tons, is now in Germany studying the
possibilities of American capital get.
ting dollar-proof grip on the German
railway system.
Ambassador Kellogg and Colonel
James A. Logan, who were the unoffi.
cial observers representing the United
States at the London conference, are
sure that the American share OF the
reparations loan will be fioated with.
out any difficulty. 1t is their opinion
that government appeal should be
made in behalf of this Morgan loan
only if it develops that its success
would be jeopardized without such
vigorous official action by the govern.
ment.
Cal Will Be Good.
Meesrs. Kellogg and Logan have no
titled the administration that the am
pie guarantees asked for by the
American bankers have been given by
the allied powers when they accepted
the Dawes plan without amendment.
The American banking interests point
to Coolidge's statement In his speech
of acceptance in which he said: 81
shall do what can to encourage
American citizens and resources to as
sist in restoring Europe, with the SYM
pathetic support of our government"
as the basis OF American official pol
icy towards all the European loans
that Wall Street bankers will float in
the United States.
In the meanwhile, the machinery
for floating the Dawes.Morgan loan is
being carefully prepared, both in Eu.
rope and in the United States. Her
riot has received the approval OF his
plans by the French cabinet Chan
cellor Marx is Tightening the screws
on the reichstag and the German in.
dustrialists are fully prepared to put