The Morgan City daily review. (Morgan City, La.) 1916-1920, 1919-06-02
Vanderbilt Depicts
European Crisis

In sensational speech on May y,
before the Economic Club Of New
York, Mr.. Frank A. Vanderlip, the
President Of the National City Bank,
who has just returned from a pro
longed tour OF Europe, said that Eu-
rope is para1yzed; that millions Of
the people are out Of work and on
the verge Of starvation; that Bolshe-
vism is rampant not only in Russia
but in Spain; and that Great Britain
is on the verge OF a revolution. Italy,
he said, fears to disband her army
because she has no employment for
her men and is afraid OF idleness. In
England. he said, Cabinet Minister
told him that six or seven millions
OF Englishmen will have to be sent
out OF the country and closes to the
sources OF the food supply unless
conditions change speedily for the
better. And in this direction Mr.
Nanderlip held out but little hope.
saying that, as far as he could see.
conditions would be worse a year
from now than they are at present
On this subject he said in part:
II | were to try to put into words
t,1t
thing to grasp about the situation in
Europe, the two words would be
'paralyzed industry There is an
idleness, there is lack of produc
ton throughout Europe and indeed
i'll England. that you can hardly
comprehend. Now why should
factory unframed by the war, in the
midst of a continent wanting every
thing. incidentally be idle? Why
should there be 100000 people in
England receiving an unemployment
weekly dole? Why should there be
in little Belgium 100000 people re-
cciving weekly unemployment
waee?"
The answer to these questions lies
in the first place in the impaired
morale of labor. In Belgium great
numbers of people have been main
tanned largely by public funds for
four and half years This is more
or less true all over Europe and peo-
pie have gotten out of the habit OF
circumference Then too there is
this difficulty: The manufacturers
need raw material and they have
neither the money nor the credit nor
the goods with which to pay for it.
Regarding this phase Of the situation
Mr.. Vanderlip says:
THE manufacturer, starting with
disorganized labor situation. a
wage Gale three times the pre-war
scale. a demoralized morale great
difficulty in getting foreign exchange
. to pay for his raw material, great
difficulty in getting bottoms to ship
/, in, great difficulty in getting it trans
ported to him after it arrives at the
port. must still produce. But after
| he produces he has not the market
that can pay. market that will give
him the means to go on completing
the industrial cycles of buying mere
raw notwithstanding his labor"
| To remedy the situation. to help
avert the revolution which Mr.. Van
! redlip considers inevitable if things
drife in Europe further along the di
-ection they have taken. he urges a
loan to Europe not of money but of
credits. Il would send machinery.
equipment for the railways. raw ma
terial; send it on time; have the pay
ments secured by the very best Sc
curity.' said Mr. Vanderlip.
Mr.. Vanderlip is not an alarmist.
He is a banker of national and in
terrationa1 reputation for sound
business judgment and accurate
knowledge of world affairs. In his
opinion. unless something is done
Europe will meet worse scatas-
trophe than the recent war. namely
w d pr cad civi1izaton-destroying
revolution If this is to be escaped