The Morgan City daily review. (Morgan City, La.) 1916-1920, 1919-06-17
European Finance and
Industry

HeCtlOT WIFI I0e investigation OF the
Peace Treaty leak" Mr. Frank Van
derlip, who has just resigned his po-
sition as President Of the National
City Bank Of New York, left the i'm
mediate subject of the inquiry in or
der to tell Of financial and industrial
conditions in Europe. In the course
Of his remarks about European con-
ditions Mr.. Vanderlip virtually re-
peated the statements he recently
made before the Economic Club of
Nv York City. This speech, it will
be recalled, caused sensation
throughout the country because of its
pessimistic tone.
In the course of his remarks be-
fore the Senate Committee Mr.. Van
derlip said:
There is paralysis Of industry in
Europe that leads to lack of pro-
duction, to idleness of men, and to
want. and which will lead, when that
becomes acute enough, to political
trouble; SO that | think we should
regard the situation as a whole and
make an endeavor to furnish the nee
esary things to start industry as
whole.
Now the financial situation of
some Of those countries is pretty
bad. ] do not believe this govern
ment should loan at the present time
to those nations to rehabiltate their
domestic financial situations What
is needed are those things, that are
essential to starving industry-raw
materials, machinery and equipment
for railroads. The breakdown of
Transportation is one Of the serious
difficulties in Europe"
| Mr.. .Vanderlip enphatiealIy reitier-
ated his conviction that money should
be loaned BY private investors and
not by the government.
Both France and England, he said,
think it would be wise" If we did
not demand payment for the vast
amounts. we loaned. them during, the
war. Senator. Mccumbef asked
whether, they. meant permanent or
Temporary cancellation. Mr.. Wander
flipsreptied shat France and England
meant to suggest chat we really
forego it,
|. When Senator Harding Of, Ohio
asked upon what theory" England
and France expected that. Mr.. Van
derlip replied:
That. theory is variousiy express
ed. Generally think it is that we
came into the war pretty late;' that
we ought to take very full share of
the financial burden because the Sit
uation 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."
| While not definitely favoring this
course. Mr.. Vanderlip suggests a
loan, on the best European security
available, to be made by group of
bankers representing various coun-
tries in position to lend. All the
lending governments would have to
do" said Mr.. Vanderlip would be to
have sufficient amount Of interest
in the matter to appoint large num-
Der of bankers--this is too big for any
single interest to handle-and | think
those bankers, with the advice per-
haps of the different governments,
should appoint a loan commission.
This loan commission. Mr. Wander
lip said. would 60 to Europe and de-
lcide what each Of the countries need
ed in the way Of raw material. ma
chuery. and equipment for the rail
roads, and make arrangements for
sending these.
America has already done much in
the way of helping Europe to recover
from the disastrous effects Of the
war. and will doubtless do a great
deal more during the next few years
along this line and in connection with
the furnishing of food, raw materials,
credits, etc ; and it may be that some
thing should be done in the matter
of relieving European countries from
the payment of at least portion of
their debt to this country. 1t is 60
ing pretty far, however. to ask us to
cancel, without any consideration
whatever, the entire amount of these
obligations, which are said to APP
proximately &,8OOOOO in the case of
France and A,5OOOO0OOO in the case
of England, in addition to huge sums
loaned Italy and other countries To
comply with such request would mean
the gift Of approximately $lQ0OO,OOO,-
600 to Europe, and would involve an
average payment Of about one hun
dred dollars by every man. woman
and child in the United States.