Dee. 20, Noruine could be more inspire ing than the reception generally given in America to the proposal that her bankers and Government should come to the aid of Europe in the financial slough in which she is plunged. It is true that Senator Borah and his fellow implacables are reported as arming themselves to fight the proposal tooth and nail. That was only to be expected and we can well understand that the Government's path is likely to be a difficult one. But its-own attitude as defined in the statement issued after the Cabinet meeting at the White House last Thursday is quite clear "It was indicated that the European situation was deemed a matter for grave consideration although a public statement at present was inadvisable and further that the Administration felt that it should not lose an opportunity for helpful influence provided a way could be discovered which did not involve departure from the well-established national policies."
The intention could not be clearer, and the fact that Messrs, J. P. Morgan have informed Germany that they can lend her no money until the reparations question is settled, in no way Vitiates Washington's ability to act on the political issue. Meanwhile the New York Press of both parties hails the project with enthusiasm, and although New York certainly is not. America, its Press must undoubtedly lead and influence in an undertaking of this nature, especially as there is good reason to believe that the leading bankers are wholly favourable.
All this news is the more welcome in that the recent confer. ence of Allied Premiers in London showed that an absolute deadlock had been reached as regards German reparations, of which no solution appears visible without America's help. The communiques insisted strongly that there was no breach between Great Britain and Erance; but it is clear that this happy result was chiefly due to the fact that the main issues were shelved and perhaps because, at any rate for the time being, the French dislike Mr. Bonar Law less than they do Mr. Lloyd George The German proposal before the conference was that internal and external loans should be raised,
Text read from the printed page and cleaned; old type leaves the occasional error.