Bisbee daily review., 1921-12-18

poStponement," he said. 'sMcuh more is necessary. A moratorium would delay the collapse--it would not avert it."
 Germany's situation was cited as having the most serious world effect Vanderlip said a collapse there would be so contagious as to seriously af- feet all Europe.
 "You can figure for yourself the 1 disaster of a German financial col i lapse" he said. Consider what 1t might do to France-a nation that has 65 billion francs in short term notes 1 afloat-mostly running 6 months notes that are backed in the main by 1 the hope of an indemnity. Think what that meanS-at normal eX- change S13.000, 100000 worth of notes that would be rendered doubtful bv a German collapse, It might be the seed of revolution"
 Holds America to Blame for Riots Vanderlip then made this sensation al statement: "The United States was wholly responsible for the riots in Vienna on December 1u'
 eve have been feeding Vienna's children" he explained, but we have
  brickbat in the other. It was an un- conscious brickbat, however.
 'I venture to say not 100 people in this country know that because we did not subordinate claim for SPA 000,O00 that the United States Grain Corporation had against Austria for grain furnished since the war, Aus tria is starving-and therefore rioting this winter.
 "All arrangements were made in London and elsewhere, to give Aus tria new loan of $35,OOO, ,O0O to tide her over the winter. Other claims had to be subordinated to the new loan. Every European nation having claims against Austria subordinated their claims. The path was cleared except for the Grain Corporations ] claim.
 Europe Blames Us for Negligence
 We pay so little attention to the | critical European situation, that we didn't even get up enough interest to refuse to subordinate the claim. It | was tied un with other international | matters be/Jre congress-and we did | nothing about it.
 s'In Europe they think we have blocked a program that would have tided Austria over. The riots Decem Der 1 are the forerunner of something infinitely worse."
 Vanderlip said he has found much there is a change in those demands | collapse will follow
 Gan the two-year moratorium, now interest aroused here in his proposal | announced just after his return, to have Europe pay it's tremendous debt to America by using it in the first fn- stance as a revolving fund of credit r to rehabilitate European countries in- stead of running the risk of dislocat- ing American industry by having it paid here. Interest in the debt sub ject, he said, was eclipsing interest in the bank plan.
 "Thes two proposals are entirely dis associated" he explained. ''I think there is a chance for both to be adopt ed. I found the bank plan well re- ceived by European financiers-much better than I expected
 The effect of the international bank he said would be to make the Amer ican dollar the uniform currency of many European countries-an Al mighty Dollar" in facti
 GOO0 OOlldr 6eCter TdpcT
 '.Wouldn't there be sentimental objection against replacing foreign moneys-marks and kronen and lira, and perhaps eventually francs and sterling-with a foreign dollar?" Van derlip was asked.
 'Perhaps," he said, "but they might as well come to it. good dollar is better than worthless domestic pap er.''
 Vanderlip said the bank would be modelled after the federal reserve sys- tem-but would not be part of it, as Senator Owen of Oklahoma has sug- gested. He thinks such procedure might be dangerous.
 "For all of Europe" he explained, "a billion dollars gold reserve would be necessary But it should be start ed gradually. Only about a fifth of that sum would be necessary for the half dozen countries that might adopt the bank plan first. These would be the sickest countries financially, per haps Poland, Austria, Jugo-Clavia, Hungary, Bulgaria and Roumania. It could be extended to other countries later.
 '.Foreign dollars would be issued, like our federal reserve notes, backed by 20 per cent gold reserve. Thus s2O0, 100000 gold would furnish bill lion dollars in currency for the coun- tries I have mentioned. The big thing is that it would establish a uniform currency and enable manufacturers and merchants to have a non-fluctu- ating basis for contracts.
 "The redemption of these foreign dollar notes in gold would be tempor- arily suspended-as are Bank of Eng land notes. This would prevent hoarding.
 Investors Should Finance Bank
 "The bank should be financed prin- cipally by investors in this country. There would be vast benefits to Amer ica in the investment itself, and In the stabilization of world trade. For eign governments would have noth- ing to do with the bank, for it would deal with neither individuals nor gov