The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-07-29
Mr.. VANDERLIP OPTIMISTIC.
Tbisks European Diplomats VIII
Prevent General Conflict,

Freveut GeneroI C0u0tCf.
Frank A. Vsnderlip. president Of tho
National City Bank, m speaking Of the
war situation last night was inclined to
take an optimistic view Of conditions as
they now stand. He pointed out the Sc
cure position Of this country IN case
crisis should come which would involve
the Powers, but expressed an opinion that
the rulers and diplomats OF Europe would
be successful In their efforts u iocaiise
tho strife.
Mr.. vanderijp said. 81 am hopeful that
tho strife between Austria and Servia will
be localized and bellows that Europe Is
bending all It's energies to that end. In
case that an international conflict does
ensue. however, I do not look for a much
higher rate In exchange. Europe 10 md
ing out TINT we are experiencing no dim
Guilty whatever with our gold payments.
las far as this country Is concerned Il
would Of course be adversely affected by
such a great war as Europe II trying to
avoid As We have no merchant marine
OF our own we would fnd our ability to
ship our Industrial and agricultural prod
ucts to Europe restricted. as tho French.
German and English merchant marine
NDul0 not ne dDle 10 operate ~ uNN'
to duv. Such q condition would result In
a depression OF our industries for the time
being
mo good can ever come of warfare. for
II Ia destruction OF capital. and capital
makes prosperity. The idea which some
people have that war would be beneficiai
to this country is a theory which belongs
TO the stone age OF economies. II we get
more for our goods abroad In case their
Tod, In naralyzaI nv we
will also have to pay the higher prices at
home. can hardly imagine a great Eu-
ropean war OF such long duration as TO
enable our building up great merchant
marine Of our own.
such a war would prove great
hindrance TO the necessary financing
which many of our great industrial plants
and railroads must do in the very near
future II would hold back such reorgan-
lzations as are absolutely necessary TO re-
adjust railroad properties In thls country.
When asked IL the present crisis would
not In the long run tend to restore con
siderable confidence in American securi-
ties Mr. Vand.rlip said that he thought
II would TT will tend to show Europe"
he said. that we are far removed from
becoming involved in SUCH dissensions as
shs is at present facing. IL will teach
her that our affairs here are in good
shape. To be sure. we had q severe decline
in our stock market here to-day. but 1t
was an orderly one compared to those
occurring abroad Moreover We have and
are still demonstrating our ability to pay
in gold whenever called upon to do so by
Europe in order to adjust our balances
there and to meet sales Of our securities
Taking the matter as whole America
IL the one bright spot In the present crisis
We have been heavy shippers OF gold
out OF tho country. but we can still con-
tnue' TO ship as much more without en-
barrassment. one Of the most conclusive
evidences OF this country's sound position
is the reserves and surplus that the banks
have assembled and for which there is
practically no demand Money is being
loaned AT 2is per cent, yet there are few
calls for Il even al TINT price"