New-York tribune., 1920-02-26
Attacks Administration as
''Dominatediby Prejudice,
Hampered by Obstinacy,
Increasingly Autocratic'
Congress Also Assailed
''Frivolous Debates Should
Drive Participants From
Public Life, He Asserts

J A. vanderlip last night to be response
! bic for Americas failure thus far to
! relieve starvation in Europe.
Speaking before the Economic Club
! at the Hotel Astor. Mr.. Vanderlip
charged that since the armistice the ma
ton has been without leadership. that
the Administration is dominated by
prejudice, hampered by obstinacy, talk
ing democracy and growing increasing
~ sutocratic in its actions" and that
Congress has INDUCED in such "friv
olous debates" that if the public real
lied it some Representatives would be
compelled "to retire from public life
forever
Mr. Vanderlip was the chief speaker
at session of the club called to con-
sider foreign exchange and Europe's
economic condition. Other speakers
we're Stuyvesant Fish. director of the
National Park Bank; Alexander Dana
Noyes, financial editor OF "The New
York Evening Post; Albert Breton.
vice president of the Guaranty Trust
Company. and Henry Morgenthau. who
presided.
Sl50,000,00 Needed at Once
Mr.. Vanderlip said he believed Con-
gress should appropriate immediately
150,000000 to relieve Europe
I'VE are to-day beginning to realize
the facts Of the worlds economic posi-
ton," he said. These facts are ter
rbly serious. but l am not pessimistic.
The only thing I am pessimistic about
is governmental and national blindness
TO those facts. | should be extremely
pessimistic if l thought we were to CON
tinue in SNUG inaction, if we were to
keep on with only a narrow. circum
scribed view, solely seeing our own in
dividua affairs and comprehending lit
tle OF the great forces that are work
ing toward conclusions that are the in
exorable resultant of these forces.
The action of foreign exchange has
been as inevitable as would be the di-
rect.on of the pointer on set of bal
snces in which we put 4-pound
wsight in one scale pan and an s.
pound weight in the other, for the
schemes of stabilizing the exchanges
correct the balance Of such a set of
scales by manipulating the pointer.
at is very sick Europe The crisis
in the illness will come in the months
just preceding the next harvest. We
are too late to effect much in the way
Of remedy before the crisis comes No
one can authoritatively predict how ii
will turn. To be constructive we must
be hopeful and assume that the worst
is not to happen in the next three
months. There is one remedy that we
should Immediately apply, and that is
an appropriation of $3.50, 100000 to help
relieve actual starvation.
Streams of Credit Urged
I'VE should then give some intelli-
gently distributed credits, obtained
from our investors, ratloned with a
broad view to European needs and Sc
cured by underlying obligations. There
would naturally follow such a course a
thousand streams of credit in the form
Of investment in European enterprises
and partnership in industrial plants,
speculative buying of exchange, selling
OF goods on credit and purchase Of
minor obligations. Then Europe would
be facing recuperation instead of dis
we are vitally interested in the
rehabilitation of production in Europe.
One effect of it will be to invade
our own markets, but every dollars
worth that Europe sells here makes
Of our own produce there.
The task is by no means insupera
bic; indeed, l believe it is easily pos
sibe, if our efforts are coordinated
and we have unified leadership.
Our great constructive program,
however, is in the domestic field. 1t is
program in which every one of you
has share. Already they have result
ed IN an imitation, the consequences OF
which have been that prices have more
than doubled and that all contracts
for the payment of money have become
less than half as valuable as they were
at the outbreak of the war Defation
is probably too much to expect, but
there must be no further imitation If
We are to avoid dangerous crash.
We should continue to present to the
world a solvent banking position, turn
from any proposed embargo on gold
exports and pay in gold every foreign
creditor who has with us the credit
TO demand gold. Such q course would
start us toward our proper place in
leadership in world finance.
Don't Reduce Wages"
81 believe employers should make no
plans looking toward a reduction OF
wages. Their efforts should be on the
side of so satisfying labor that we Will
have efficiency in our workshops. II
manufacturers will come to look at the
daily wage a man receives, comparing
1t with the wage received before infla-
ton changed the general price level,
and Will attempt to reduce labor cost
by efficiency rather than by lowering
wages, the controversy between capital
and labor can be solved. There are
manufacturing plants which have
found the key to the solution of the
problem. Generous wages, a sympa
thetic attitude toward labor, some
larger voice Of labor in the councils
Of the industries will bring response
IN the shape of efficiency that will
lower the labor cost while wages are
advancing.
Fundamental to all other points in
4 constructive program is the develop
ment of our educational system. We
throw about money with prodigal hand
while we throttle the very fountain
head Of national life The world will
never be safe for democracy until de-
mocracy is intelligent. If we will put
the $3.50 900 900 that it is planned to
spend for universal military training
INTO universal training in the princi-
pies of government and economics
america will be safe for democracy.
As we build the intelligence Of the
nation we shall be able to dispense
with hampering laws; as we nationally
understand economic principles we
snail cut the fetters that hinder such
development. Without understanding
OF economic principles and their en-
oodiment in our legislative program