Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1920-08-28
COMEBACK OF
EUROPE WILL
BE VERY SLOW
Austria Facing Desperate
Situation for Lack of
Credit.
ENGLAND CAN'T COLLECT
By FLOYD MGRIFF,

By FLOYD MGRIFF,
Copyright, 1920, by international News
Service.)
NEW YORK, Aug. 2S-Europe's eco
nomic recovery from the world war will
continue, as since the armistice, by slow
and painful degrees, in the opinion Of
Frank A. Vanderlip, one OF the foremost
hnanciers in America.
There is no other way out. he said.
why do you think Europe's recon
structinn is progressing so slowly?" Mr..
Vanderlip was asked.
How could it do anything elsef" 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
confusion.
Delays in the publication OF the
treaty, due to Emergencies in interpre-
tatiOn of the instrument, also have re-
tarded Europe's industrial revival
The Encouragement of frontiers, the
breakdown of a great part OF Europe's
railroad systems, and the fact that Rus
sian supplies are cut OF, are contribur-
ing factors which have combined to delay
economic revival.
HARD TIMES
FOR AUSTRIA.
Consider the case of Austria. She
can not feed herself. Austria could live
by manufacturing, but she lacks credits
fer raw materials.
she can sell her art treasures and
pawn her state Jewels, but those are
stop gap measures, without permanent
result and can not be continued in
definitely.
The result must be migration or
starvation Of Austrians."
Then would you suggest a new peace
conference to revise the treaty?" Mr..
Yanderlip was asked.
NO" he replied, decisively. That
would only accentuate the situation by
more delays"
How does England's recovery OF
, world trade markets impress your"
England. I believe" said Mr. Wander
lip, granted too heavy credits abroad
to enable her customers to purchase her
products just after the armisrice and to
keep her factories going. her people at
work, and to win back her former com
mercial position, which had been assaulted
by the United States.
England now has a problem In secur-
ing payment for this large volume OF
postwar exports, a volume stimuli ted
perhaps unduly By liberal credit grant
Ing.
Il believe England overplayed her hand
in an effort to combat American world
trade expansion"
''Win there be a repercussion in Eng
land to relieve that fact?" Mr.. Wander
lip was asked.
Possibly" he replied
ITO what extent?"
DEPENDS
ON CREDIT.
THAT depends upon how far the cred
its England has extended prove to be
good he explained.
Then do you think" he was asked,
that the present exchange rates Of Ger
many. France. Italy and England accu-
rately reflect their respective degrees of
solvency5"
yes, practically" Mr.. Vanderbilt re-
Piled.
And not only that, they also represent
the imitation of their respective curren.
cies. There has been too much print.
ing press money, with no gold be-
Mind it
DO you believe, as many prominent
Europeans assert, that the allies have
passed the peak of their postwar eco
Eom!c 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 troubles ahead for
those European nations, which are
spending more than their income. They
must get back to the realities Of life"
Would you say there is a world
money shOrtage?"
NO" said Mr.. Yanderlip. There has
simply been too great an expansion OF
credit. Nations, as well as individuals.
mrst pay as they go, or take the con-
sequences"
HARD WORK
Is NEEDED.
"Can you suggest a remedy for Eu-
ropes financial difficulties?"
NO he replied. There is not, in
my opinion. any panacea or 'cure-all'
There must be Il return to frugality,
hard work and economy"
do you think the proposed league
of nations financial conference at Brus-
sells in September is likely to better the
situation?" Mr. vanderlip was asked.
Insofar" he said, las the European
nationals may decide to debate their cur
rencies, make their budgets balance, re-
adjust their customs to permit flow Of
bfaue anu Tena DllllaCe the railroads for
the common good of Europe-the aims
which have been stated to be the OBJ
jects Of the Brussels meeting-good will
develop"
Mr.. Vanderlip was asked whether the
allies would suggest INSTRUMENTATION Of
all war debts at the Brussels meeting and
whether England would subscribe to such
a program.
England would be delighted I'm sure"
Mr.. Vanderlip said "But / am not in
formed that a policy will be put forward
by the allies.
My understanding is that England
herself would not, on her own initiative,
propose such cancellation
But If the allies together advised such
procedure, England might subscriber"
Il don't doubt that in the least" Mr..
Vanderbilt 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"