The Washington herald., 1921-11-29
Wants America to Collect
And Spend Money to
Help Payers.
BOXER INDEMNITY
PROCEDURE URGED
Sees Chance for Nation to
Ha S ten Goodwill
Among Peoples.

NEW YORK, Nov. 2s.-Frank A
Vanderlip. banker and economist,
home from Europe after an exhaus-
tive study of the chaotic financial
system abroad, has evolved a scheme
by which. he believes, Europe may
pay its debt to America. and yet
by so doing be "regenerated" rather
than further impoverished
In an address before the Eco
nomic Club in New York he revealed
his plan, which has already received
the attention and approval of many
foreign fnanciers. Briefly stated.
the plan is:
Gist Of "tbe Plan"
First-To obtain frank acknowl-
edgement by every foreign nation
Of the debt owed to America
Second The arrangement Of
easy" terms by which this debt
could be liquidated.
Third - Devoting the payments
thus made to the rehabilitation of
European finance, economics. public
works and culture.
In Vanderlip's own words. he
would prove that III We convert
the debt que US into a debt due
humanity, the wnole world would
want to see IL raid"
Each national neighbor II our
debtors" he declares. will he even
more insistent tran We that the
obligation be discharged. because
they will have hopes of improving
their own situation with the aid of
some of the funds so realized.
World sentiment would be favorable
to this debt being paid If the pur-
poses to wfiCh the amounts were
to be devoted were clearly seen to
be wise and sound purposes for
Eu' opean regeneration"
Europe Unable to Pay.
Vanderlip points out that the
debts due our government are
specific signed obligations to re-
pay" and that the government
nH turally has expected and expects
tooay that they will be repaid. At
the time The loans were made there
'ras never suggestion that they
should be regarded as part of Amer
ica's contribution to Americas war
effort.
There is growing irritation in
Europe. however. because America
does not see fit to give these
amounts outright in what Europe
believes was common cause. More
over. Nanderlip points out. there is
not a single nation in Europe that.
at least in its own counsels, does
not blankly admit its inability to
pa.
In this situation the noted econ
omist lays down his first principle
that the allied debt is a just debt.
legally and morally. and whether it
can be paid or not, il should be
-cheerfully and gratefully acknowl-
edged as just debt"
Payment Would Hurt U. :.
He then proceeds to outline the
result of Americas enforcing pay
ment of the loans. Broadly speak
ing, he says, on obligations as tre-
mendous as the s11 zoo. 900. 900 owed
the United States. the only possible
meth d of discharging them would
be by payment. directly or indi-
! rectly in goods. But receipt in
goods even of The vast interest
from such a loan would upset our
own economic and industrial sys-
TEN, Vanderlip argues. and that
creates an apparent paradox in
that while Europe should acknow-
ledge her debt to America, pay
ment of the debt would iniure
America rather than aid her.
Here Nanderlip enters the third
phase of his scheme.
81 would have America make a
! i,,s ;,t
lationships." he says. "I would Xix e
to see every dollar that can ever
be paid to us by our debtors de-
voted to the rehabilitation of Eu-
| ropean civilization. 1t is only
| through the rehabilitation OF Eu,
ropean civilization that these debts
can be paid. or that America can
ever ccnceivably realize in full
| measure her own destiny.
Europe Needs the Money.
Large sections of Europe zre
backward. judging from our stan
| dards, but they are bursting with
latent possibilities. A considerable
part of what we received, might be
used as revolving fund of credit.
It could be loaned to- nations to
help them accomplish specific pur-
poses, purposes which we had care
fully analyzed and believed to be
| economically sound and for the
general good.
Europe needs better transporta-
tion. We coyId help provide IT.
! Europe needs great development
of it's hydro-eleetrie power, we
could.aid in initiating such projects.
cities need better systems of sani-
tation: we could give impetus to
IT. IF such expenditures were
wisely made, the Indirect return
would be enormous.
"All the way from the Baltic 70
the Black Sea there is newly
awakened passion for education.
The establishment OF institutions
such as Roberts College would cost
but a trivial sum. 1t would pro-
foundly influence the future course
of civilization in Europe and the
future welfare of the world.
Americas Opportunity.
Il would propose to engage the
establishment of great scientif3c
laboratories. I would give Italy. II
she agreed to have 1t, the means
for establishing great schools of
applied art"
Vanderlip points to the prestixe
America gained in her action lin
China after the Boxer uprisinr,
when the nation devoted the ss7,-
100000 indemnity to uplift work in
China.