The sun., 1919-06-12
EUROPE HOPE BU.S.
WILL CANCEL LOANS
Contihaed Pom First Page.


situation In Europe and would allocate
to the different nations such a proper
ton Of any proposed loan as they might
decide was Just and would make the
loan not In terms of money going into
the treasures of the European nations
but In terms of goods going to some In.
dustry. raw material. machinery and
equipment for the railroads"
You would include food in that Of
course?'' senator Williams (Mlss)
asked.
Food to q certain extent, but the
supplying of food alone will never cure
the situation. Europe must go to work
itself or Europe Is doomed" was the
reply.
Have you any system by which to
make these people go to work over
thereT Senator Borah asked. ="
"They will go to work IL they have
the opportunity" Mr.. vanderlip asserted.
They do not show much disposition,
many OF them" Senator Borah COM
mented.
Says Conditions Are DimcuIt.
Conditions are very difficult" Mr..
Vanderlip answered. "They have had
the most serious trials on their morale
Take the situation in Belgium, where
there are 100000 men being supported
by the Government and have been sup
ported for several years. 1t is difficult
to get old conditions back"
THAT is all right but you know we
have Russia and those adjoining coun-
tries in the middle part Of Europe"
Senator Borah interjected. DO you
see any disposition on the part of those
people to avail themselves of the oppor-
tunities they have, although they are
very llmited?"
They have no opportunities" the
banker replied. Take the situation of
Poland. Poland was fought over and
back three times. There Is vast dis
trict there that is absolutely denuded
The machinery was taken out OF the
factories. They have not been able to
plant over une-third of the fields.
There Is no opportunity to go to
work there. There Is the most disor-
ganized situation.
"They have no credit. They have no
means of getting any raw materials.
They have for the time being probably
sufficient amount of food, but they have
planted SO little that they will not be
able to export any food just as Ru-
mania, which has been a great export
ing nation. has planted not more than
enough to supply her own people this
last year because her work cattle have
been driven of and she had nothing TO
work the land with.
"She had an inadequate amount OF
machinery and great shortage of seed.
Rumania was a country that worked it's
fields with cattle very largely. They
we're to very great extent killed or
driven away. The Premier of Rumania
told me they would not be able to plant
enough this year to export any. although
1t had been common for Rumania to ex-
port to the rest of Europe a hundred
millions a year OF different grains.
Dcplorablc Conditions In Serbia.
Serbia is distinctly worse off than
Rumania. Serbia Is utterly broken
down In its transportation. under
stand there were only nine locomotives
left in Serbia at the time of the armls-
tice."
do I understand you TO say that you
thought this financing ought to be done
by private banking interestsT Senator
williams asked. t'0
Yes" said Mr.. vanderIip.
And not by the Government?
Yes not by the Government"
your private interests would not go
into II unless the Government would TN
derwrits 1t. would they?' said the Sena-
tor.
No; I should get the best security
that Europe could offer," was the reply.
II should get security that had first
lien upon the customs of each country"
Precisely" said Senator Williams.
"but you would want some combination
of governments behind it?"
mo. not the lending governments"
Mr.. Vanderlip said. II think some Sc
curity can be devised that will not fur
Their burden the lending Governments,
but will have a basis that will warrant
private investors in buying the bonds"
How would you do that. by charter
ing a great corporation. or how" asked
Senator Williams.
MY suggestion can be varied in many
ways" said Mr.. Vanderlip. ut Is for a
fifteen year loan, one fifteenth to be re-
payable each year, and this loan to be
secured by a first mortgage on the GUS
toms OF each country. The amount that
Is necessary II not so large In the light
of these figures that we have come to be
used TO. because II must be translated
into actual things laid down in Europe.
1T Is not sum to rehabilitate the
treasures of Europe. 1t Is to start the
industries and translate 1t into goods
that must be manufactured and ex-
ported"
And the trade. will pay out of its
products" Senator williams suggested
Yes" was the answer.
French Refuse U. s. Machinery.
Senator Moses IN HI interposed {:
DO you know anything about the re-
ported refusal OF the French Govern
ment to admit American machinery into
France coming from American manufac-
turers?' he asked.
Eyes, and I think II was very wise for
French Government TO do everything It
properly could TO hold down the i'm
ports into France" was Mr.. Vanderlip's
reilly. "They probably did some unwise
things in regard to certain matters.
"On the whole, France has very little
to pay with. Her vast income from
Russian securities, from Turkish securi-
ties and Balkan securities have ceased
for the time being. while her needs
to pay for things bought on the outside
are greater than ever before. so that
her position is very serious as to her
International balance. and It Is entirely
proper that che should do everything
she can to hold down to the lowest point
possible on Imports"
Senator Moses-"And that has some
bearing on the falling OF the price OF
the frame"
Mr.. Vanderlip-"That had some bear
ing in keeping the franc up higher than
they otherwise would have been able 10
keep It. II they had permitted larger
IMPORTS the franc would have fallen more
rapidly.
c. ~ ~