Perth Amboy evening news., 1921-12-09
SAVE EUROPE
TO HELP J.. 8.
So Says vanderIip, Who Has
lust Returned From
Europe
By EDWARD CHERRY

- Copyright, 1921, NEA Service)
SCARBOROUGH, N. Y. - Will
Europe, struggling with a crucial
economic illness, adopt Frank A.
vahderlip's international bank plan
in order to get back on its feet?
The famous financier, back from
many months survey of Europe,
says the initiative must come from
across the water.
II have simply written the pre-
scr:ptlon," he says
In an interview at "Beechwood,'
his nome here, where he is at work
on a book dealing with Europes
financial ills, to be published shortly
in six languages simultaneously,
Nanderlip gave NEA Service his
first elaboration of the plan and
discussed its effects.
Central Europe Is Near Collapse.
Establishment of a central bank
is necessary" he said, because the
countries Of Central Europe are
headed for financial collapse.
This is not a matter Of predic-
tion-some of them have collapsed
already. Austria Is an example.
THE inevitable effect of govern
ments' printing billions of fresh
paper currency Is continued depreci-
alton of their moneys.
"As things stands now there Is no
escape for Germany. h isn't bal
ancing her domestic budget by man.
billions, to say nothing of paying
her PREPARATION bill.
ut is not certain that an adjust
rlent of the reparation demands
would save Germany from financial
collapse. But it is certain that un-
less there is a change in those de-
nlands collapse will follow"
Moratorium Not Real Remedy
"Can the two-year moratorium,
row being discussed. save the situa-
tion?" Vanderlip was asked.
"A moratorium would be only a
II ore is necessary. A moratorium
would delay the collapsed would
not avert it,"
Germany's situation was cited as
having the most serious world effect
Nandcrlip said a collapse there
would be so contagious as to serf-
ously affect all Europe.
you can figure for yourself the
disaster of a German financial col
ispse," he said. Consider what 1t
night it do to France-a nation that
his 65 billion francs in short term
notes afioat-mostly running s
months-notes that are backed In
the main by the hope of an indem-
nity. Think what that means-at
rormal exchange 5000. 000, 900
ofth of notes that would be rem
Gered doubtful by a German coll
| pse! 1t might be the seed Of rev.
olution."
Holds America to Blame For Riots
Vanderlip then made this sensa-
tional statement: THE United
states was wholly responsible for
the riots in Vienna on December II"
We have been feeding Vienna's
Children" he explained, but we
have proffered bread in one hand
and a brickbat in the other. It was
an unconscious kickbat, however,
II venture to say not 100 people
in this country know that because
we sdid not subordinate a claim for
S:f,000,0 600 that the United States
Grain Corporation had against
Austria for grain furnished since
the war Austria is starving-and
therefore rioting-this winter.
"All arrangements were made In
Austria a new loan of $35,000.00C to
tide her over the winter. Other
claims had to be ~subordinated to
:isc new loan. Every European ma
tion having claims against Austria
srhordinated their claims. The rath
was cleared except for the Grain
Corporations claim.
Europe Blames Us For Negligence
I'VE pay SO little attention to the
critical European situation. that we
didn't even get UP enough interest
to refuse to subordinate the claim.
u was tied up with other ;nterna-
ii nal matters before Congress-
and we did nothing about it.
I'm Europe they think we have
blocked a program that would have
tied Austria over. The riots De-
CctGber 1 are the f~orerunner of
ar~-nafbino tpdpifelu WorcatD