The Guardian (And Evening Star, with winch is incorporated the West Coast Times.) WEDNESDAY, MARCH 20th, 1924. HOPE OF SETTLEMENT.

Hokitika Guardian, 26 March 1924, Page 2

The Guardian (And Evening Star, with winch is incorporated the West Coast Times.) WEDNESDAY, MARCH 20th, 1924. HOPE OF SETTLEMENT.

Jt seems to be almost too good to be tine that events are at last shaping for patience to be rewarded and hope fulfilled in regard to a settlement of the outstanding financial difficulties ot Germany in relation to the adjustment of payments to the Allies. It was mentioned recently in the cable news that there wa.s a. more hopeful feeling in America for an early settlement. Now has come a circumstantial account tlirough the New Yoik papers of a world loan for Germany, the issue to be about sixty-live millions sterling. The report is that Wall street, in conconjunctiou with British and Continental financial interests, will begin, arranging machinery for the distribution of an international loan for Germany early this suincmr, along the" )lines understood to be suggested by the Dawes reparations report. The J. I’. Morgan Company is known to he ready at short notice to undertake such commitments as are calculated to restore Europe to a normal basis. Bankers indicate that the loan’s success on the American market would be enhanced considerably by guarantees similar tc those attached to the Austrian loan, although these may lie omitted if the bonds are secured by mortgage on German railroads and industrial establishments administered under Allied control. The aggregate amount of the loan is not expected to exceed 250,000,000 or 300,000,000 dollars, of which not more than 100,000,000 dollars are to be arranged in the United States. Observers are convinced that froth German and French approval will be ensured for such a loan. This appears to he a very definite statement of a comprehensive scheme. For some time the financial experts of the countries concerned have boon discussing and investigating the ability of Germany to pay. Two important committees have been probing the matter, and evidently the recommendations reached have been made known unofficially at all events, with the result that an enterprising press man has been able to eommunieato the information conveyed by the cable as above. It will be very satisfactory indeed if Germany is to be pul in the way of meeting her financial obligations under the reparations. It will open the way to a more general adjustment of European affairs. The arrangement will bo largely on the lines of a compromise, no doubt with liberal concessions to Germany. But it has been recognised for some time that the peace treaty financial demands were in need of adjustment to bring them into lino with the ability of Germany to pay. The loans will he iif part, if not in the main, to repay the Allies who will Ire subscribing to the loan to repay their own debts, but instead of the pallor security under the treaty provisions, the Allied States will hold hnnds secured hv mortgage over German railways and industrial establishments in regard to which ihc Allies are exercising a certain eonfrol in the production of commodities, the value of which goes in part payment of reparations. But though this is apparently a way of helping Deter to pay Paul, it provides a way out of the economic deadlock, and that in itself is a. great gain. The hopes for a settlement are therefore rather promising, and if the reports shortly to ho published by the Committees lead up to that decision, it will be a groat achievement of the highest importance to the world at large.