New-York tribune., 1919-06-12
VanderLip Says He Did Not
See Treaty; Takes Rap at League

! possessed OK seen copy OF the treaty
Senator Hitchcock asked him if he
thought. there could be united effort
on the part Of the financial interests
Of the United States to assist the man
ufacturers and agricultural interest.
of the country in supplying a credit
under which the European countries
can buy American products"
Il would not put it quite that way
replied Mr.. Vanderlip. There is the
most desperate need Of assistance, no,
only by the United States but by othe,
countries that can supply things that
are needed to start the industrie.
of Europe. A situation exists there
that is threatening the civilization of
Europe"
Senator Knox-Do you think we
ought to guarantee their political in
dependence and territorial integrity
as part Of this scheme?
Mr.. Vanderbilt do not
have no objection, that you would in
dicate to the committee just what you
think ought to be done. financially, in
order to accomplish the purposes that
you have mentioned in helping Europe,
and also helping ourselves in dispos-
ing Of the products Of our own mills
and factories and so forth.
Mr.. Vanderbilt feel that the situa-
tion in Europe is such that Europe
must be regarded now as a whole; that
it will not do to aid one country, or
even a group of countries, and leave
others unaided. There is a paralysis
| Of industry in Europe that leads to a
lack Of production, to idleness of men,
to want, and will lead, when that be-
comes acute enough, to political
trouble; so I think we should regard
the situation as a whole and make an
endeavor to furnish the necessary
things to start industry as whole.
! "Now, the financial situation of some
| of those countries is pretty bad. do
not believe that this government or
present time to those nations to re-
habilisate their domestic financial sit
uaGons. What is needed are those
things that are essential to starting
industry-raw materials, machinery
and equipments for the railroads. The
breakdown of transportation is one of
the series difficulties in Europe Per-
sonally, l think it would be better that
investors furnish this money directly
than if it were furnished indirectly
through further government loans.
There is a disposition in France and
in England to feel that it would be
wise and just for US to fc-ego the de-
rand for the repayment of the large
amounts of money we have loaned.
l Senator Borah-What is that? ! did
+, not understand that statement.
Waving of Loans Hinted
Mr.. Vanderlip-There is a distinct
feeling in France and England that it
would be just thing for US to forego
asking the repayment Of the large
amount of money we have loaned.
Senator McCumber-At any time, or
just at the present time?
Mr.. Vanderlip-No, sir. 1 mean
really forego it.
Senator Hardng-Upon what theory,
Mr.. Vanderlip?
Mr.. Vanderlip-That theory is vari-
ously expressed. Generally, 1 think it
is that We came into the war pretty
late; that we ought to take a very full
share of the financial burden, because
the situation has become so desperate
for those nations that came into the
war earliest and bore the full brunt of
the war and the financial burdens en-
tailed by it.
any territory or any reparations, are
we?
Mr.. Vanderlip-None whatever.
Senator Knox-Do you not think that
is pretty fair Offset to what they
owe US?
Mr.. Vanderbilt am not advocating
this statement Of the duty, you under
stand. I think this sentiment is in
creasing, and I think therefore it Is
doubtful if the debt ought to be in
creased iii the face OF that sentiment.
Senator Brandegee-How much have
We lent to France and England?
Mr.. Vanderlip-We have lent to the
Allies s9,50o,000,o0O. We have lent to
France $2,soo,0oO,OO0 and my recollec-
tion is about $4,000. 900, 900 to England
Well, was going on to say what !
thought was the way to handle this
situation. l believe the governments
of the several countries that are in a
position to furnish to these European
countries the material necessary to
start their industries might we'll unite
IN an international loan. All the lend
ing governments would need to dc
would be to have a sufficient amour,
of interest in the matter to appoint q
large number of bankers-this is toe
big for any single interest to handle
and l think those bankers, with the
advice, perhaps, of the different gov.
ernments, should appoint loan COM
mission, which would study the whole
situation in Europe and would allo-
cate to the different nations such q
proportion Of any proposed loan a.
they might decide was just, and would
make the loan, not in terms Of money
going into the treasures Of the Euro.
pean nations but on terms Of good.
going to some industry, raw material
machinery and equipment for the rail
roads.