Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1920-02-07
VANDERBILT URGES
CHANCE FOR FOES
Financier Sees Trouble for Eu-
rope and World If Terms
Are Not Modified
GIVES CAUSES OF UNREST

Frank A. Fanderlip. former president
of the National City Bank Of New
York. and a finaDcier of international
repute, believes the peace treaty should
be rewritten and the terms made easier
for Germany.
He spoke last night at Friends Sc
lect School before an audience COM
posed largely of fnancierF. Charles ].
Rhoades. president OF the Central Ma
tional Bank. presided.
I'm Germany $1,000, 900 persons are
in utter despair. because of an indem-
nifty impossible to bear" said Mr.. Van
Gnrip. They have no gold. What can
thay pay with? Only goods, labor and
exports. But they cannot get to work
without aid"
Explains Credit System
In the course of his address he ex-
planned the workings of the country's
credit system and its bearing on inter-
national affairs. He pointed out the
initiation of the federal reserve system
was the primary cause of rising prices
in this country: resolved the European
situation into choice of foreign trade.
emigration or starvation. He declared
he wished to see individual German mil
itary leaders punished. and favors the
deportation of the REDS. Europe
is in a bad way" said Mr.. Nanderlip.
1T is unable to start its industries.
because of lack of credit for raw ma
terials, loss of morale. decrease in man
power. shortage of food. breakdown of
industries. People crushed may 60 into
revolt. No tariff wall will keep out
political influences. They will bridge
the Atlantic
The tremendous difficulty Of the Eu
ropean situation and the decline in for
eign exchange, Mr.. Vanderlip said, are |
due primarily to the great excess of |
their imports over their exports. A |
great increase of population found |
Europe at the beginning of the war
with 100 200. 900 more people than
could be cared for by her resources.
During the last year Europe, with in
dustries Frustrated. bought from us
four and three quarter billion dollars
worth of goods, and sold to us only
three quarters of a billion.
Goods. gold and credit are the only
ways in which a nation can pay for
rign debt" said Mr.. Vanderlip. "The
huge deficits in the foreign trade had
to be made up. And the end of the
war did not end war expenses. Dollars
rose in value and foreign exchange
Tell.
To-day the German mark has fall
en from twenty four cents to a frac-
ion more than one cent 81 value. Last
year Germany printed 10000, 200, 900
marks, and in the month of December
alone one and one half billion. There
S resulting depression of currency.
IN England the pound has decreased
rom $4.S6 to $500.
Spend More Than Income
"Yet bread in those countries is
cheaper than in Philadelphia. The gov
spend more than their income.
because they have subsidized wheat to
ieep 1t within the reach of the popula-
ion. Germany buys Il bushel of wheat
n the world market and sells it in re-
tricted quantities. but at the equivalent
# sixteen cents in gold less than the
ost. so as not to stir up revolution
mong hungry workInen.
''The real cause of the high cost of
wing with us is the same sort of in
Iation that is taking place in Europe" l
eclared Mr.. Nanderlip. The true {
'ause of social unrest and indus I
rial disturbance is the invisible hand ,
which has reached into every deposit :
OK, and rewritten every contract which I
as to do with money. Money doubles |
tselt in eighteen years, but the things
hat money buys have tripled in cost. I
nhatlon has two arms, and while one '
5 gathering huge plies the other is {
asting it out to every o, e who would !
roht by constantly rising prices.'' +