The Washington times., 1920-08-28
EUROPE FACES
PAINFUL DAYS
Slow Recovery Seen by U. S.
Banker-"Return to Frugallty
Is Only Panacea." -
By FLOYD MaeGRIFF.
International News Service.
(copyrisht 1870 by International News
Sorvice).

NEW YORK. Aug. 2S.-Europe's
economic recovery from the world
war will continue. as since the
armistice. by slow and painful de-
Erses. in the opinion OF Frank A.
Vanderlip. one OF the foremost
nnanciers In America. There Is no
other way out. he said,
why do you think Europes re-
construction Is progressing SO slow
ly?" Vanderlip was asked.
"How could II do anything elseT
he parried. There was great delay
In making the peace treaty. Eco
nomic principles were lost sight or by
those who drew up the Versailles
treaty. which has resulted In eco
nomtc confusion. Delays In applica-
ton Of the treaty. due to diverBencies
In Interpretation OF the instrument.
also have retarded Europe's In
dustrial revival. The rearrangement
of frontiers. the breakdown OF
great part of Europe's railway
systems, and the fact that Russian
supplies are cut off. are contributing
factors which have combined to do
lay economic revival.
AUSTRIA IN GREAT PLIGHT.
"Consider the case Of Austria. She
cannot feed herself. Austria could
live by manufacturing. but she lacks
credit for raw materials. She can
sell her art treasures and pawn her
state Jewels, but those are stop gap
measures without permanent result.
and cannot be continued indefinitely.
The result must be migration or
starvation of Austrians."
Then would you suggest new
peace conference to revise the
treaty." Vanderlip was asked.
" Il IA tatu unlU
would only accentuate the situation
by more delays"
How does England's recovery OF
world trade markets impress you?"
England. believe said Wander
lip, granted too heavy credits abroad
to enable her customers to purchase
her products just after the armistice
and to keep her factories going. her
people at work, and to win back her
former commercial position. which
had been assailed by the United
States.
England now has "a problem in
volume Of postwar exports, a
volume stimulated perhaps unduly
by liberal credit granting.
"ENGLAND OvERPLAYED HAND"
'T believe England overplayed her
hand in an effort to combat American
world-trade expansion"
"Will there be a repercussion In
England due to this fact?" Wander
lip was asked i
Possibly" he replied.
"To what extent?"
THAT depends upon how far the
credits England has advanced prove
to be good" he explained.
"Then do you think" he was asked,
s"that the present exchange rates of
Germany, France, Italy, and England
accurately reflect their respective de-
grees Of solvency?"
"Yes. precisely" Vanderlip replied.
"And not only that; they also repre-
sent the initiation of their respective
currencies There has been too much
printing press money, with no gold
behind It."
"Do you believe, as many promi-
nent Europeans assert, that the allies
have passed the peak Of their postwar
economic and financial crisis?" was
the next question.
"GET BACK TO REALITIES"
That's rather an optimistic view Of
the situation" Vanderlip commented.
"It 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?"
mo-" said Vanderlip. There has
simply been too great an expansion of
credit. Nations, as well as individ-
uals, must pay as they go or take
the consequences"
Can you suggest a remedy for Eu-
ropes financial difficulties"
mo-" he replied. "There IL not. in
my opinion, any panaccn or tcure-all.'
There must be a return to frugality,
hard work and economy"
do you think that the proposed
League of Nations financial confer
ence at Brussels in September is like
ly to better the situation?" Vanderlip
was asked.
HAS HOPE FOR FUTURE.
Insofar" he said, las the European
nations may decide to debate their
currencies. make their budgets bal
ance, readJust their customs to per-
NIT flow of trade, and rehabilitate
their railways for the common good
Of Europe-the aims which have been
stated to be the objects of tho Brus-
sells meeting-good will develop"