New-York tribune., 1919-10-18
yanderlip Says
InactiOn Makes
Europe Suffer
pIames Administration for
Failure to Back With
Moral Support L o a n
to Rehabilitate Continent

eno e'nn"onsihility for the failure of Ameri-
ssns thus far to work out compre-
ss ssnsive plan for financing the Old
Wnrld He was speaking at the second
aav's session of the American Manu-
sss:snrcrs' Export Association at the
Waldorf Astoria Hotel.
After pleading the cause Of PROSTATE
rnrope which he sketched as on the
rsrge of ruin, the former president of
@ ,ss National City Bark inquired why
~ move is being made toward the fo-
.s,;on Of an all European loan.
~ think the trouble" he said. "in
large measure is not lying with Con-
o,ess but with the i>stration.
Tiere has been no desire FOR imme-
d;ste action; indeed. the Administra-
linn has put its thumb on immediate
seton. apparently because action was
not wanted until the treaty was dis
posed Of.
a believe there has been a feeling
that the chances of having the treaty
fsvoraby acted upon were better while
This pressure remained, and so there
have been plans started, but they have
advanced slightly because they did not
have the sympathetic attention of the
Administration But time has not i'm
proved the situation"
Dark Picture Recalled
Recalling the dark picture of Eu-
ropean conditions which he painted on
his return rom abroad more than four
months ago. Mr. Vanderlip declared:
Il tell you that | have nothing to re
tract at all of what I have said in re-
gard to the seriousness Of X. Europe
IS going into winter of very great
privation, and of the sort of privation
that breeds political trouble. There is
need for very immediate action"
According to the plans for action
suggested by Mr.. Vanderlip, Henry P.
Davidson, Of J. ?. Morgan & Co, and
others, the government would not be
but merely lend its affirmative moral
support to the scheme of raising
money through the sale of bonds
throughout the country to be used in
setting the wheels of industry Of Eu
rope in motion again.
In view OF Mr. Nanderlip's speech,
Secretary's Redfeld's address last
night at the banquet of the same con-
yention was listened to with especial
interest. The Secretary Of Commerce
placed himself on record as favoring
the broad banking plan for pooling
Americas lending resources, and was
the first Cabinet member publicly to
do SO. 1t is understood that Assistant
Secretary of the Treasury Letfingwell
has privately approved the programme,
and that Secretary Glass is not un-
friendly disposed to it.
Mr. Vanderlip, in his address, which
was impromptu. took issue with those
investment bankers who believe that
American investors would be afraid to
purchase bonds guaranteed by the Eu-
ropean governments.
Disagrees With Senator
Mr. Vanderlip. who spoke after Sen
ator Owen, Of the Senate Committee
or Banking and Currency, remarked
thar he did not agree With some of the
things Senator Owen had said, particu-
larly in reference 70 the need of the
reentrance OF the government into the
world markets as a money lender and
10 his statement that the banks had
signally failed TO function in the mat
ter Of extending large credits 70 Eu-
roDc
Moreover, the banker disagreed with
the Senator's statement that conditions
m Europe were Improving. There Is
paralysis Of industry all over Europe" ,"
Nr, VanGerlip insisted 81 said that
tour months ago. + has only gone or
on the whole, getting worse. One cx-
eeption Is Belgium, bat, on the whole,
! think that IS the only exception. We
have seen these nations continue TO
print money; we see England contin-
uing to print money. and she has now
printed billion and 4 half dollars
vel! over $500, 1000, 900 Of her currency
tes-and that amount is being stead
liv 11TcI n 0nN
francs Of paper money outstanding.
and that Is steadily growing. The same
situation exists in Italy. and as things
stand to-day, these nations haven't an
adequate amour. to exchange for the
things they want. OF course, our i'm
ports are large, but, really, J would
IKE TO attend q meeting of the Ma
tlona h-port Association. That is
"ha' We are going TO need"
Touching on Senator Owens's pro-
posa ter government credit, MIR
FaaCer.iU said: NOW, shall we have
government credit? We are getting
iond Of government things, of having
me government 90 almost everything
tnat Is 20 be done and il has done
some o. those things very we'll and
sofne Of them pretty badly, and it has
granted $4,000, 900, 900 Of credit, and
mere is q new factor in World affair
III taar today there are 525 900 0OO .O0C
o h-erHationa government credits
N,tol-s t0a1 our government has grant
Cd 10 the Allies, credits that England
mas granted TO the Allies and is still
granting. credits that France granted
oor'"S the early pant Of the war. These
gfea' debts, that already some Dor
iD"efs tank ought not 20 be paid, anc
al tae borrowers agree cannot even
nave the interest paid for the present
A. least
50 J am ore Of those Who believe
mat the government has gone fal
enough, particularly that the govern
ment has gone far enough when it j,
pos:ioie to 10 It some other way. Now
u there was no other way, if it coult
not furnish the credit to Europe tha
II must nave, II it Is to be saved from
great catastrophe, then by all meaa'
"'s give them government credit. W.
cannot liyc 70 ourselves alone"
Face World Crisis
,. Aiter diagnosing in his own wa,
Elfope's malady, Senator Owen de
cclaIed; TINS il world crisis We
ace; y " thing which VIII mo-
oecor again in the life OF any man pres
Fnt ana have thought that under
seese extraordinary circumstance,
S'nee the foreign commerce Of The
ps"pie o. the United States was in
.oiFe1. since it affected the product
ne forces of America IN every field
"nfthsr oi agriculture or mine or for
ss', 81 whether Of the manufactures o.
me country 1t affected every
Dpoy' mold that H. is proper cas-,
"aefe the powers Of this goYernmcn
Could Or exercised as povernrnent