Free trader-journal and Ottawa fair dealer. (Ottawa, Ill.) 1920-1927, 1921-11-29
VANDERBILT WOULD
USE ALLIED DEBT TO
BUILD UP EUROPE
FlNANcIER RECENTLY RETURN
ED FROM SURVEY OF OLD
COUNTRY GIVES HIS VIEWS ON
FINANCING NATIONS WHOSE
ExcHEoUERs WERE EXHAUST
ED BY WAR.

:" New York, Nov. ~. --Recoehi'ion
By ,he allies of their eleven billion
dollar debt 60 America as a Just DEBT
agreement by this country to easy
garments and the money thus repaic
ia be used in rehabilitating Europe,
was a plan proposed tonight by Frank
A. Vanderlir, New York banker, Tor
settling tho obligations of the war
Mr.. Vanderiip, who returned recent
" from Europe, where he MADE an
exhaustive study OF economic condi'
lions, spoke before the Economic clup'
He said he had discussed the debt
with the leading responsible govern
J. ment ministers and fnanciers OF Eu'
rome. and nearly every bation admit
ted Inability to lay.
The United States would be hurt
as much by tho rapid receipt Of pay
ment In the form Of goods, the only
possible fern OF payment in view OF
characterization of foreign exchange
as the allied debtors would be harm
led IN making the payment.
The full consequences would be
profourd 10 said, IF the payments
could lie made and were made with
Il, any degree o. promptness. We need
met look further than 70 contemplate
merely the receipt OF S5O0OOO,OOO
..yA;,,' interest II that came in the
form OF gods, our Industrial situa
ticn wouC be upset in way and tt
IAN extent We have not heretofore ex
porienced. The effect upon our la
Elur situation and the consequent so
cial problons which would be raised
- would be menscing.'
AS the first postulate in his plan
vanderlip said he would lay dowr
- the principle that the allied debt wal
-. just debt legally and morally ant
- should DO cheeTfully and grateful,
:. acknowledged rs Just debt.
"Next. would want America t
= be both an intelligent and lenien
- creditor" he continued Terms o
: payment onl II to be adapted to thu
- means OF CT! debtors. In that re
srect We sbCrld take the action o
- tho allies In liking the terms Of thu
indemnity as AN example to be avoid
Z ed rather than followed.
THE cru Of my plan would lie il
tie disposition of the payments.
- 81 would have America make
beau-jeste, grand gesture in int
e. national relationships. While demand
ing that the payment be made,
- would have America say that she
prepared for the present to foreg
- the receipt of it,"
~ Concerning what should be don
with the money paid back, Vanderli
- Eaid
81 would like to see every dolla
- that can ever be paid to us by on
debtors for years to come, devote
to the rehabilitation of European ci'
- lzation. 1t is only through such +,
Mobilization that these debts ca
- ever conceivably be paid. 1t is onl
through the rehabilitation of Eur,
=== pean civilization that America ca
= ever conceivably realize in full me;
- sure her destiny, or can expect
full measure OF prosperity for he
people"
g. He believed a plan for the develop
ment of eastern Europe could be lai
g. out, he said, comparable to the vi
t--v- ion our forefathers had when the Il
H.. tent possibilities OF our great we.
were unfolded to their minds.
Everything the war has cost" h
s== added, everything an unwise peaC
is costing, can be recompensed, an
e beyond that great economic margi
created, if eastern Europe can be pt
-. in order, can be helped and led wis
ly to handle its own problem il til
&... people of eastern Europe can be mad
=3 to comprehend their economic unit
il they can be brought to understar
- that in the welfare of all nations, Ii,
the highest prosperity of each"
= To program of this kind, he d
clared, he would devote for mar
years every dollar this country cou
= get Of the allied debt.
. I'VE need not make an irrevocab
- decision when we embark on tn
4 program. For good many years,
= believe it would be wise for us
devote all we receive to such DIT
=, poses as have suggested. 1t is e
tirely possible, however, that the
would come such economic restoI
= tion that in the end, a considerah
. part conceivably nearly all OF Il
So principal might be paid to us.
Testify in Rebuttal.
San Francisco, Nov. 29--Rebutt
testimony was the order of the d,