Evening star., 1920-02-21
BY n. o. MESSENGER.

REV YORK, February 21.-Para'
mount to national politics. absorbing
as that topic may be at this time in
important financial circles in New
| York. is interest in the situation
abroad respecting credits and eX-
| change. industrial affairs and eco
nemic problems confronting Europe.
The country has just been given a
! sharp object lesson of the sensitive
ness of the relationship between do
| mestic and foreign economic money
markets and credit by the smashing G
decline in listed securities on this
side of the water.
This was foreseen and forewarnins g
was given by some of the biggest
men in the financial district here.
The worst of it is believed to be over.
Rejection In the U. 8.
Another phase of the information
situation il still in the future how
ever. should affairs go from bad to
ton in the United States of social
and political unrest and agitation
overseas.
Congress is looked to by big men
over here to deal with the subject il
the most immediate exigency. Other
steps will follow later. as the best
brains of the financial world work
out the problems. But it is declared
now that the thing at hand is to af-
ford relief SO as to prevent a portion
hunger and running amuck against
the world
Appeal to Hoover.
Herbert Hoover has been appealed
to by important interests here to
make another effort to get Congress
to act. 1t is assumed that he has
better and more practical knowledge
Of affairs in the stricken region. The
Stars correspondent is told that Mr..
Hoover will soon make another and
more urgent appeal to Congress.
One of the big men in the financial
district regarded as best posted on
the European situation is Frank A.
to WashingtOnians or. for that mat
ter. to any reading community in the
country.
Mr.. Vanderlip not only never seeks
newspaper publicity. but shrinks from
the limelight of the press, though he
is strong in council and in directors
meetings. and 1t was with consider
able reluctance that he consented to
allow The Stars correspondent to
quote him in the first person ver-
batim. But he is tremendously stir
red over the gravity of the situa-
ton.
VaAderiip Tells of Conditions.
I'VE are apt to say pretty glibly.
Europe must 60 to work; Europe is
idle; Europe must save ITSELF" said
Mr. Vanderlip. ''and to advise Euro
taxes and cut down their expendi
lures so as to balance their budgets,
and to say that until they do that
they are without credit; they are
headed for bankruptcy. All that is
true. Europe must go to work Eu-
rope cannot be saved by charity.
But there is irony in the statement
that Europe must go to work when
Europe is hungry and cold and with
out material to work upon. 1t is diff
ficult for some of those governments
to cut down expenditures and raise
They do need to tax more and spend
less, but that is a very difficult thing
to do.
Regards Loans q Menace.
Facing that situation, admitting
that they are not at work and that
they cannot be saved by charity and
have to go to work; admitting that
their governments are spending in
excess of their incomes and therefore
are without credit, what are we going
to do? Where is the handle to take
hold of?
I'VE do not want our government,
I believe, to make further loans to
those governments. Our government
already has loaned ten billion dollars
l regard it as menace to our future
relations. The borrowers believe to-
dav that it ought not to be repaid.
1--WE are inclined to say. Tt is hard,
of interest payments. but are claim
ing that we shall fund those interest
payments SO that'we will get COM
pound interest during the time We