The Lake County times. [volume] (Hammond, Ind.) 1906-1933, 1920-08-28
EUROPE'S
RECOVERY
TOBE SLOW
Frank Vanderbilt Discusses
Economic Conditions of To-
day Across the Atlantic
By FLOYD MACGRIFF

STAFF CORRESPONDENT !. n. SERVICE
NEW YORK. Aug. 2s.-"Europe's
VIII continue. as since the armistice
ny slow and painful degrees, in the
opinion OF Mr.. Frank A Vanderlip.
ore OF the foremost inanciers in Amer
lea There is no other way out" he
said.
why do you think Europes recon
struction Is progressing so slowly ,"
Mr. Vanderlip was asked.
DELAYS WERE REsPONsrBLE
How could it do anything else?" he
parted There was great delay in
making the peace treaty. Economic
principles were lost sight OF by those
who drew UP the Versailles treaty,
which has resulted in economic con-
fusion. Delays in application OF tho
treaty due TO dlvergencieS in interpre.
tatjon OF the instrument. also have re-
tarded Europe's industrial revival The
arrangement of frontiers. the break
down OF q great part OF Europe's rail-
road systems and the fact that Rus
sian supplies are cut or, are contrib
rting factors which have combined to
delay economic revival.
AUSTRIA FOR EXAMPLE
Consider the case OF Austria She
cannot feed herself. Austria could
live By manufacturing. but she lacks
credits for raw materials. She can
sell her art treasures and pawn her
state jewels, but these are 'stop-gap'
measures, without permanent result.
and cannot be continued indefinitely.
The result must be migration or
Then you would suggest a new
peace conference 10 revise the treaty"
Mr. Vanderlip was asked.
No he replied. decisively. That
would only accentuate the situation BY
more delays"
ENGLAND's PROBLEMS
How does Englanas recovery of
world trade msrgets impress your"
England, I believe said Mr.. Van.
derlip. granted TOO heavy credits
abroad to enable her customers TO pur-
chase her products just after the arm
istice. and to keep her factories going
her people a work, and to win back
her former commercial position. which
had been assailed by the L. S.
England now has a problem in SCI
curing payment for this large volume
o. postwar exports. a volume stimu-
lated perhaps unduly by liberal vredit
granting.
i believe England overplayed her
hand. in an effort TO combat American
world trade expansion.
VIII there be q repercussion In Eng
land TO relieve that fact?" Mr.. Wander
lip was asked
Possibly" he replied.
To what extent"
That depends upon how far the
credits England has extended proves to
be good" he explained.
Then do you think" he was asked.
that the present exchange rates of Ger.
many. France. italy and England accur.
ately reflect their respective degrees OF
solvency?"
Yes. precisely" Mr.. vanderiip re-
piled.
And not only that they also repre-
sent the imitation OF their present cur
rencies. There has been too much
printing press money with no gold coin
behind IL"
DO you believe, as many prominent
Europeans assert. that the allies have
passed the peak of their postwar eco
nomic and financial crisIs?" was the next
question.
That's rather optimistic view Of the
situation" Mr. Vanderlip commented
1t strikes me as quite possible that
there are plenty of trouble ahead for
those European nations which are spend.
ing more than their income. They mus;
get back TO the realities of life
Would you say there is . world
money shortage?"
No said Nj Yanderlip. There has
simply been too great an expansion OF
credit. Nations. as well as individuals
must pay as they go or take the conse-
auences."
Can you suggest q remedy for Eur
opes financial dificulties?"
No. he replied. There. is not in my
opinion. any panacea. or 'cure-alI.' There
must be areturn to frugality. hard work
and economy
Do you think that the proposed lea que
Of nations financial conference at Brus-
sells in September is likely TO better tbs
situation?" Mr.. Vanderbilt was asked.
Insofar" he said. as the European
nations may decide to debate their cur
sencies, make their budgets balance. re-
adjust their customs 70 permit now OF
tredc anc rehabilitate the railroads for
the common good of Europe-the aims
which have been stated to be the objects
OF the Brussels meeting-Agood will de-
velop"
Mr.. VanderIip was asked whether the
allies would suggest inter-cancellation Of
all war debts at the Brussels meeting
and whether England would subscribe to
such program.
England would be delighted. I'm
sure" Mr. vanderlip said But am
not informed that such a policy will be
nut forward by the allies. Ny under
standing is that England herself would
not on her own initiative propose such
Cancellation"
But II the allies together advised
such procedure. England might sub
scribe?"
7 don't doubt that in the least" Mr.
Eahdernp replied.
But you must understand that the
allies are not paying anything now to
the United States. Even the interest
has been held in allegiance by the United
States government"