The New York herald., 1921-12-08
VANDERBILT BLAMES
U.S.FOR VIENNA RIOT.
Says Neglect on This Side
Caused Shortage Of Food
and Outbreak.
FRENCH JUGGLE FINANCES
Hardly a Nation in Europe Is
Balancing Budget With Ex-
ception of Italy.
FRENCH JUGGLE FINANCES

France is the greatest financial Jug
gler In the world Frank A. vanderlip
told the members of the Bond Club at
luncheon meeting yesterday in the
Bankers Club. 1.-THE French Finance
Minister" he said. must keep II the
air 100000 francs of short term
debts, six months Treasury notes, at
the most a year He must not only
jusgls there. keeping those 65.000.oee.-
900 in the air, but he must reach down
every few months and pick up another
billion, because France Is under pledge
TO spend in the next three years $4,000
W0.oOO francs more for reconstruction.
She has not been able to raise taxes to
point that will approximately meet
that expenditure and is being disap-
pointed and Is likely to be still more dis
appointed IN her indemnity receipts.
There is an amount OF floating debt
equal to twice the total debt that France
had at the outbreal, Of the war, and she
had debt then that was one of the
largest per capita In the world"
Mr.. Vanderlip previously had COM
mented upon the general Improvement
In the superficial aspect OF Europe and
had stated that hardly nation In Eu-
rope is balancing its budget. He found
Italy notable exception in that she has
culating notes and had collected heavy
taxes. but he said: II could be almost
optimistic about Italy II It were not for
the facts Of her foreign trade"
France. he found, had slightly reduced
her circulating notes. and then he added:
France has rather clever way of ball
ancing her budget. She finds out what
her income Is and then she cuts Off from
her expenditures an amount equal to
tf.. Al.
budget, and 1t balances. Everything
that is left over Is called the ext-aordi-
nary budget and does not have to be
taken into account"
Printing Press q Big Aid.
Mr.. Vanderlip commented upon the
well known effects in central Europe
of balancing with an unlimited print
ing press the unbalanced budgets. d.
recting particular attention to the en-
barrassing position In Austria. He
made the charge that America was di-
rectly responsible for n riot recently in
the Bristol Hotel. Vienna, and he pre-
dicted that there would be many more
within the next few weeks. Mr.. Wander
lips explanation of this charge was as
follows:
Austria was so carved UP at the
Paris peace conference that II became
doubtful whether 1t was economically
possible for her to live. She has got
a city of 100000. Sc has got popu-
lation Of $4,000 with nothing but
narrow strip Of Alpine country upon
which to raise her food. She must ex-
port to get food to live, and for the
time being 1t seems impossible for her
to balance her foreign trade and ex-
port enough to pay for necessary food
imports.
1.-THE League Of Nations studied that
question seriously and appointed COM
mission of some Of the ablest financiers
in Europe, who evolved a scheme for
taking care OF the vital necessities OF
Austria through the winter. The scheme
comprehended a loan of $S5.000,oo0.
"The figures are not much, but to get
such loan considering Austria's credit,
It was necessary practically to use re-
ceiyers' certificates. That is. they
planned to issue ter Muelen bonds. and
10 do that 1t was prerequisite that
those nations that had claims against
Austria should subordinate those claims
to this new issue.