The Washington herald., 1919-08-24
EUROPE PANICKY OVER DELAY
BY u. S. IN RATIFYING PEACE
Allies Even More Worried by Trade Develop
ments Here and Failure of Banks to Fur
nish Them with Funds

please impress on your readers
tht II is Washington, not Wall
street, that must act Wall street has
no heart; it seeks interest and
security for its money, and most OF
Europe at present does not provide
the latter"
Ny informant indorsed Frank Van
derlip's scheme for a joint credit
Vanderlip has proposed that the ma
tions Of the continent unite and in
return for an American and British
loan of many billions, divided accord
ing to the needs of each other. give
Us a first mortgage on their revenues.
But not only has nothing been done
to bring this about since Vanderlip
suggested it three months ago and
predicted the collapse Of the ex-
changes; since then the money string
ency in Wall street has made evident
that the credits could not be obtained
in the open market. Government ac-
ton alone, followed by public sb
scription on a large scale, could make
effective the Vanderlip plan.
England. Position Best.
So much for Wall streets attitude
Some of the cries Of distress that have
recently reached me from Europe VIII
give the other side Of the picture
England stands incomparabfy better
OF than any other great power ex-
cepting ourselves, and has herself
loaned great sums to her less for
tunate allies. But recently in the
House of Commons a heckler asked
the Chancellor OF the Exchequer
whether the figures of expenditures
and receipts just presented didsnot
indicate that without retrenchment
the Empire was headed toward bank
ruptcy. and Chancellor Chamberlain
added quietly. with true British potse:
That fact would appear to be sut-
hciently obvious"
Even proud and powerful England
wants more great loans from US, to
drive up the exchange rate and make
it possible for her merchants to buy
raw materials at less ruinous prices,
and indeed TO make it possible for
them to buy from America at all
British credit stands infinitely higher
than that of France and Italy, while
the poor little new nations in South
eastern Europe. their industry pros
trate. their manhood decimated,
SLdl lGu ildLlOildl ne :" Ill lONAAAL5 DNe
legacy Of Imperial Austrian and
Russian debt. They, too, stretch out
their hands to Uncle Sam.
Italy is worse OF than any OF the
larger powers. because she has no
coal and iron upon her own soil. and
must import these necessities. With
out coal there can be no modern in
dustry. But Italy has run her obli-
cations to nine times those of the
debt under which she staggered in
1914. Producing little. she cannot pay
in goods for the coal and other raw
material she needs. The support given
her credit by the American and Bri-
tish governments. it is officially an
nounced. will be withdrawn in tho
fall.
GHeIp or We Are Ruined.-
Unless you in America give US
coal. and lend US money to pay for
what we need. We are ruined" A
letter received yesterday from a
prominent Italian in Florence con-
tained the dismal prediction quoted,
and continued with the narrowing de-
tails of widespread food shortage
and unemployment. All alternative
measures taken by the government.
he told me, are mere palliatives. finan-
cially Unsound based upon the is
sue Of more paper money. When the
populaCe riots for cheaper food. prices
are cut down-the government prints
more lira and pays the difference be
tween cost and selling price to the
producer. After showing how the
Rome government is living from hand
to mouth. postponinE the day Of reck-
oning. in mortal fear of Bolshevik
risinss, my informant concluded his
letter:
Can YOU not tell the American peo-
pie that they alone can save US? We
need coal and food. We cannot pay
for them now. Some day we can and
will. We fought with you; without
US the allies were beaten. We are
left by the war more stricken than
Germany. Will you leave US to per-
ish?''
France is more proud; she would
not put things as the Italians put
them. But France. too, feels that
America is her only hope. With one
third the population, she circulates
more paper money than the United
States; her only way to meet con-
stsntly recurring obligations of biz
lions Of francs is to print more paper.
Prices rise, and must under such a