The Washington times., 1915-05-02
VANDERBILT FEARS
WAR MONEY CRISIS
This Country Has Not Felt Full
Effect, He Tells American
Academy of Science.

PHILADELPHIA. May Frank a.
Nanderlip. president of the National
City Bank. Now York. at the closing Of
tho annual meeting of the American
Academy of Political and Social Science.
said the United states has not yet felt
the full financial effect of the European
war. He presided at :he session, at
which was discussed Americas financial
position as affected by thc war.
Vsnderlip said the Initiation OF note
Issues and Of credit in the European
COZ ntIies at war has acted as a cushion
against the shock. He thought the ef-
feet of the financial situation will even
tually be felt more seriously than it is
at present.
The present easy money situation IN
TIE United states. according to T. w
Lamont. a member of the Morgan hank
ing firm OF New York, who followed Mr..
yanderltp. was not duo to excessive IN
fiation IN Europe. Lamont spoke of the
future [ ( finance following the war. He
said:
I'VE shall see the spectacle OF the
business men OF all nations paying to
one another their Just debts. We she'll
see the German merchant keeping his
word sacred to the English and the
French to the Turk. We shall see
finance standing rea3y to develop new
enterprises to find money TO till new
fields. to help rebuild broken and
wreck-strewn world.
tell whether New YORK would supersede
London as the worlds money center.
New Markets Needed.
Even with it's wonderful resources.
he said. it will probably be many years
before America could become the flnan-
cial center. TO become so, he added,
the United States must build up new
ton Of the war is bound to be a deter
mining factor. The United States must
not only continue to build up it's for
eign trade in order to gain financial
continue to buy back securities from
Europe. and become a large leader to
other countries.
At the morning, session.. at which
the relations Of the United States
discussed. DR.. Bernhard Dernburg,
former colonial secretary of Germany,
spoke briefly. He denied a statement
made at last nights session that Ger
many had protested the right of the
United States TO ship arms to belliger-
ents.
The effect Of the war on financial con-
ditions was discussed in many phases.
Dr. Joseph French Johnson. OF New
York University. said he believed the
United States will have to furnish
money and foodstuffs after the war to
help Europe, make quick recover
of Pennsylvania did not expect a great
inflow of immigrants after the war. as
the able-bodied men would be needed
at home. The question Of trade expan-
sion. he said. is bound up with our ma,
tional defense land he urged the United
States to look we'll to the defences Of
the country. A. B. Leach, president OF
the Investment Bankers Association
said the net result fthe war on this
country's finances would be of suostan-
tial benefit.
Peace Discussed.
The meeting closed with a discussion
OF Americas possible contribution to n
constructive peace. Speakers included
August Schvan, former Swedish diplo-
mat: Oscar S. Strauss. former ambas-
sador to Turkey. and Norris Hillquit
New York; A paper by G: Loves Dick
read. in which he suggested, amonC
other things, that peace be established
| through the Intervention Of President
Wilson.
John Hays Hammond reviewed the
| financial distress in South America
resulting from the war, and suggested
| that Pan-American supreme court be
established to decide disputes relating
| to foreign investments and PanAmeri-
| can commercial tranSa ctions.
| Alexander ]. Hemphill. president of
| the Guaranty Trust Company OF New
York. said The wastage of capital by
| the war estinated on years duration
was SIC, 600 OO0, 900.
| American business men were warned
that now is the time to plan for get
| ting \ share of the South American
! trade hitherto enjoyed by European ma
| tiers. a speech by DIR. f. f. Pratt
chief of the Bureau of Foreign anG Do
mcrciaI and financial paralysis whict
fell upon the Latin-American nations al
the outbreak of hostilities in Europe
gradually was passing away.