The sun., 1919-06-12
EUROPE HOPES
US. WILL MAKE
GIFTS OF LOANS
Vanderlip Says Frenchmen
and Englishmen Argue
to Cancel Debts.
TOTAL IS $9,5O0,O0O,OOO
Help Must Be Extended, SEN
ators Hear, or Civiliza-
ton Is in Peril.
TOTAL IS $9,5OO,OOO,OO
Special Despdtch 10 THr srx.

WASHINGTON. June 1.-THE whole
Of Europe is threatened by
prevailing conditions and there is the
most urgent need Of financial interests
OF the United States and other nations
uniting to supply credit so that Euro
pean nations can buy American prod
ucts. This situation not only exists
but Americas interest in it is vital,
Frank A. Vanderlip. retiring president
OF the National City Bank, told the
Senate Foreign Relations Committee
to-day.
Mr.. Vanderlip appeared ostensibly
as a witness before the committee in
its successful effort to find out how
copies Of the peace treaty got into the
hands Of certain men In New York.
Mr. Vanderlip disposed of this SO far
as he was concerned in a few seconds
but kept the committee closely inter-
ested in his outline OF what American
banking interests must do now to save
the Old World.
However. In answer to q question put
by Senator Knox Mr.. vanderlip made II
extremely clear that he did not think the
United States should undertake to guar
antes the political Independence or terri.
torial integrity OF any nation as a part
OF his plan. He pointediy would have
Russia out of any plan for help from
outside for European industry while the
Bolshevik Government maintains control
there.
Blanket Aid Is Needed.
II feel" said Mr.. vanderlip. that the
situation in Europe Is such that Europe
must be regarded now as a whole; that
II will not do to aid one country or even
group OF countries and leave others
unaided.'
Later Mr. Vanderlip excepted Russia.
There is a paralysis OF industry in
Europe that leads to a lack of produc-
ton. to idleness Of men. to want. and
will lead" he continued. when that be-
comes acute enough. TO political trouble
30 that l think We should regard the sit
untion as q whole and make an endeavor
to furnish the necessary things to start
industry as a whole.
Now tho financial situation of some OF
those countries is pretty bad. do not
believe this Government or American In
vestors should loan at the present time
| to those nations to rehabilitate their do
mestio financial situations. What Is
needed are those things that are essen
t!sl TO starting industry-raw materials
machinery and equipment for the rail-
| roads The breakdown of transportation
Is one of the serious difficulties in Eu-
rope
| Personally think 1t would be better
that investors furnish this money dl.
/ rectly than II It were furnished indi.
rectly through further Government loans
| There is a disposition in France and
| England to feel that II would be wis.,
| and juSt for US to forego the demand fol
the repayment OF the large amounts OF
money we have loaned"
McCumber Wants the Basis.
AT any time, or Just at the presen,
timer" Senator McCumber On. D. asked
| II mean really forego It," said Mr.
vanderlip.
"
asked Mr.. Harding tohio).
That theory is vartousiy Expressed,
he replied. Generally think it is that
| VIC came into the war pretty late thai
| VIC ought to take a very full share OF tn,
financial burden because the situation
| has become no desperate for those ma
tions that came into the war earliest ant
| bore the full brunt OF the war and tn,
financial burdens entailed by IT,"
| I'VE are not getting any territory OF
any separations. are wer' Senator Kno1
| suggested.
| Mr.. Vanderlip: None whatever"
Senator Knox: do you not think tha,
10 a pretty fair Offset to what they ow,
| us?'
| Mr.. Vanderlip: "I am not advocating
this statement OF duty, you understand
| think this sentiment is increas sing anC
think therefore It Is doubtful II ths
debt ought TO be increased In the fac,
| OF that sentiment"
| Senator Brandegee: How much hav,
we loaned to France and England?"
| Mr.. Vanderlip: I'VE have loaned e
! the Allies %, 500. .oO0, 900. We have loane,
to France sa.Soo, 900, 900. and my recol
| lection Is about S4,500. .000, 900 to Eng
land. I was going on to say what
thought was the way to handle this sit
uation. believe that the Government
OF the several countries that are in
position to furnish TO these European
countries the material necessary 10 star
their Industries might well unite in al
International loan.
Would Make Loans of Materials.
"All the lending Governments woul.
need to do would be to have n suficlen
amount OF interest In the matter to ap
point a large number OF bankers-thi
IL too big for any single interest Z
handle--and I think those bankers wit
| Continued on Second Pdoe.