New-York tribune., 1919-07-06
.AuCovernment
Leans Menace,
Says Crosby
Financial Adviser to Amer
lean Peace Delegation
Declares in Favor of Pri.
vate Financing of Europe

Oscar T. Crosby, financial advisor
to the American delegation at the
peace conference, who returned to New
York yesterday, declared that any
further governing financing OF Eu-
ropean countries would prove a
political menace to the United States.
He advocated a policy of private ini-
tiative on all loans for commercial and
industrial restoration of Europe.
Mr.. Crosby made it plain that he
was speaking unofficially. His services
terminated with the signing Of the
armistice. Prior to the conference he
was assistant Secretary of the
Treasury and president of the Inter-
Allv Council on Purchases and
Finance.
"I am merely approving the state
ment OF the Federal Reserve Board =
MIR. Crosby said, (which discouraged
further government loans to the ma
tions Of Europe"
The assertion made recently by
Frank vanderlip that Europe was bank
rupt was brought to Mr.. Crosby's at
tention.
II think conditions have been
very much exaggerated" he said, "and
that European countries will not bor-
row nearly as much as has been talked
about.
Every government loan is a men
ace. There is no political danger IN
private loans. The bank groups IN
Europe might canvass the needs OF the
countries, investigate them and the
securities offered and report to the
American bankers, who could issue
loans on one, two or three year Ger.
tificates In this way Europe would
rapidly recover. 1t might accomplish
this in five years, but il is everybody's s
Guess. II the governments remain
stable they will recover quicker than
the South did after the Civil War.
The bankers could themselves fix
.he proper interest rate. 1t ought to
be possible for manufacturer OF
Oshkosh to obtain the same credit as
any foreign borrower. The government
system of financing makes it too easy
for a banker 10 get money. 1t ought
not 10 be too easy to get money, and
there should be some supervision OF
/ tie credits
/ Mr.. Crosby declared that the willing
ness to pay taxes would not continue
as it did during the war, and that
Americans should study how to reduce
( them, rather than initiate the tax rate
through government control Of foreign
financing. He spoke of the numerous
+ strikes as part of the general irrita-
lion Of the moment"
AS far as Russia is concerned, am
against Intervention" Mr.. Crosby said
The Kolchak government is a govern
n.cnt Of private ownership without any
reaction to Czarism. The other is an
attempt to set up communism. do
not believe IL will come in my day
but | think il would be a bad thing
to interfere now. II the communism
idea IS wrong it will not take long ia
! show il. II We intervene, the Russians
will say it was not given q chance. II is
this objection to Intervention that Is
causing 30 much unrest in France, TO-
gether with imitation Of the credits and
the high cost Of living there. All this
/ believe, will end with the withdrawal
Of troops from Europe and the gradual
return to pre-war conditions"
Mr.. Crosby said he was returning tc
his home in Virginia TO live as O
private citizen. He expects to engage
IL literary work, and will put some oi
his reflections on the league Of ma.
tions in writing