The sun., 1919-10-18
VANDERBILT URGES
GIGANTIC CREDITS
Proposes Form Of Receivers
Certificates to Avert Stag
nation in Europe.
PUTS DELAY UPON WILSON
Asserts Administration Has
Held Off in Order to Get
Treaty Ratified.

Prefacing his remarks with the state
ment that he could not retract one word
of his assertions of a few months ago
regarding the paralysis of Europe, Frank
A. Vanderlip. formerly president OF the
National City Bank. said yesterday that
the greatest duty the United States ever
has faced is the wholesale financing of
European industries. which must be
saved from catastrophe
He advocated the extension of credit
by means of an immense loan. not a
Government loan but apparently gi-
gantic pooling OF capital for the COM
mon good. with all the governments CO.
operating and the creation of a new se-
curity which II properly founded he be-
lieved American Investors would buy.
In relation to this security he used a
new phase, II think that Europe Is ready
for receivers certifcates--something to
be issued that will either be specifically
| secured or in some way will be made to
have a prior lien upon income Of the
present securities" But however we
arrange credit, Mr.. Vanderlip said, we
have got so to apportion II that at will
substantially reach all industrial Europe
and enable the Industrial workers to re-
turn to their duties"
He attributed the slowness of this
country TO make any move to the Admin
istraton rather than to Congress.
There has been no desire for immediate
action,' he said. Indeed. the Admins
tratbon has put its thumb on immediate
action, apparently because action was
not wanted until the treaty was disposed
OF. 1 believe there has been feeling
that the chances of having the treaty
vorably acted upon were better while
this pressure remained"
RedheId's Credit Plan.
Mr.. Vanderllp's talk was a feature OF
yesterday afternoons session of the con-
vention of the American Manufacturers
Export Association at the Waldorf-As-
toria. At the dinner last night which
ended the convention William c.. Red
field. Secretary of Commerce, favored
the formation of a credit providing
country wide organization OF banks, man.
ufacturers, merchants and farmers, with
500,000,000 or perhaps 81 200. 900, 900 Of
capital. This organization could take
the securities of nations, cities and cor
porations and issue against them and
its own capital issue debentures amount
ing to perhaps $4,000. 900. 900 or more, to
be sold to big and little investors
throughout the United States.
In resolutions unanimously adopted
the association urged the Senate to take
early action on the peace treaty. delay
In which had contributed to industrial
hesitancy and stagnation and social un-
rest
Mr.. vanderlip said at the outset that
something more than the financing of
goods from production to consumption,
which was the function of a bank. was
needed now. What was needed was
'the loantng OF credit to these nations
for a good long time" He continued:
You are not going TO have an in
ternational agreement that will correct
the foreign exchanges. They will be
corrected when those countries can ex-
port as much as they want to export, or
when they have got something that the
world will take In exchange for what
they want from the rest of the world.
They are not producing. There Is a
paralysis Of industry all over Europe.
On the whole It Is getting worse. I
think Belgium is the only exception.