The Birmingham age-herald., 1924-07-23
COMPROMISE IS OFFERED BY KELLOGG Politics And Business Is Still At Odds On Ger
 man Default HEREOF IS PIVOT
 OF WHOLE FARLEY Premier Must Stand Firm To Avoid Ministry's
 Fall
 DAWES COMMITTEE
DAWES COMMITTEE
 MAY BE RECALLED
American Ambassador Would Place Settlement Of Guar
 antees In Its Har:ds
BY CHARLES M. MCCAIN fBy Leased Wire to Age-Herald)

(Oy AodSOU NVAU BO 1A6O-AAOAssANJ
 LONDON, July 22.-The allied reparations confe- c7ce has re- solved itself into clash between finance and politics. In the argu- ment to determine proper guaran- tees for |. loan to Germany, the co d:spassioned views of bankers who intend to protect their money are aligned against the tactics of politicians who must keep an eye on the unsteady currents in their home capitals.
 Thus, the allied statesmen are confronted with the problem of as- certaining: >
 First, what Premier Herriot of France is able to concede without falling before the attacks from the French opposition group headed by ex-Premier Po.ncare; a. second, what the international bankers are able to conc de without endanger- ing the $20O, ,000, 900 loan to Ger many, on which the success of the Dawes plan depends.
 Bankers Renig
 Bankers in New York and London have rejected the proposals of the com mittee on defaulfs ald sanctions, de- claring theiv reconlrn en da tinns for safe ]. guarding Germany against another Ruhr invastion are inadequate. A loan to Germany, these bankers contend, would not be good investment with out stronger guarantees. Herriot, on the other hand, feels he must be allowed to maintain a sufficiently firm attitude toward Germany to placate the strong nationalism at home.
 Meantime, authoritative spokesmen for all the nations represented declare they are determined to reach d settle ment, recognizing that failure to solve this point would wreck the entire Dawes prgoram. No one is willing tO contem- plate that.
 Worried over the outlook. the big five -MacDonald Herriot, Kellog, Theunis and DeStefani-met Tuesday in their quest for solution. Theunis, the Bel gian premier, stepped into the breach with a proposed compromise which would provide that five members of the original Dawes committee be consulted before any declaration was made of German default. This suggestion proved unsatisfactory, so Ambassador Kellog proposed that members of the Dawes committee be consulted before any action was taken with regard to sanctions against Germany. Kellog also urged that no sanctions be taken if these committeeman decided they would interfere with Germany's payment of interest on her loan.
 No Decision Made
 No final decision was taken. Regi- nald McKenna. British banker, Owen D. Young, Thomas W. Lamont, Philip Snowden, chancellor of the ex- chequer; Montague Norman, governor :, of the Bank of England; NJ. Clementel, the French financial expert, and Signor DeStefani, head of the Italian delega- ion, spent almost the entire discuss ing the deadlock. They except to meet again Wednesday, when the big five also will go into session again at No. 10 Downing street.
 It is planned to hold the plenarS ses- sion in the afternoon but the real work of the conference is not being done in plenary sessions if no solution is reached by Wednesdav afternoon the plenary ses- sion may not even consider the ques- tion of sanctions and guarantees.
 The situation leaves the phlegmatic and popular radical French premier, M. Herriot, as the pivot on which the sue cess of the conference rests. He is in a difficult position. He will fall from office if he comedies too much; the German loan will fail if he remains too firm in his attitude.
 The plenary session is to discuss the reports of the various committees. If no compromise has been reached on de- faults and sanctions, the conference probably will tell the committee to con- tinue it's efforts for a solution.
 The committee dealing with economic evacuation of the Ruhr and restoration of German sovereignty reached an agreement Tuesday ngiht. This is un- derstood to provide that economic evacuation of the Ruhr will begin Au- gust 15, if Germany has complied with the conditions for putting the Dawes report into effect.