Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1921-11-29
Plan For Settling of Obliga-
tions Outlined by Frank
A. Vanderlip
BANKER URGES DELAY
Would Insist Loans he Acknowledged
By Allies AS Preliminary to
Plan.

New York, Nov. 29.-Recognitlon
by the allies of their Sll,0OO,000,-
900 debt to America, as just debt,
agreement by this country to easy
payments, and the money thus repaid
to be used in rehabilitating Europe,
was plan proposed tonight by Frank
A. Vanderlip, New York banker, Tor
settling the obligations of the war.
Mr.. Vanderlip, who returned re-
Gently from Europe, where he made
an exhaustive study Of economic con-
ditions, spoke before the Economic
Club. He said he had discussed the
debt with the leading responsible gov.
ernment ministers and financlers OF
Europe, and nearly every nation ad-
mitted inability to pay.
Mr.. Vanderlip also declared that
the treaty of Versailles was the most
unwise document ever struck of from
the mind of man."
Before the world could be restored
to normal conditions, he said, the
treaty would have to be rewritten
and the map of europe redrawn. Inc
speaker asserted that Germany would
not be able to meet her indemnity
payments and that when she 1alled
70 meet them anything might hap
pen, from a revolution in Germany
to the breakdown of civilization IN
western Europe"
AS remedy other than the re-
drafting of the treaty and the re-
drawing of the map, he suggested
federalized Europe. something ike
united states of Europe"
The United States would be hurt
as much by the rapid receipt OF pay
ment in the form of goods, the only
possible form of payment in view OF
the decentralization Of foreign eX-
change, he said, as the allied debtors
would be harmed in making the pay
ment.
"The full consequences would be
profound" he said, "if the payments
could be made and were made with
any degree of promptness. We need
not look furthF than to contemplate
the receipt of $500, O,OOO year OF
interest. If that came in the form of
goods, our industrial situation would
be upset in way and to an extent
we have not heretofore experienced.
The effect upon our labor situation
and the consequent social problems
which would be raised would be men,
acing."
AS the first postulate in his plan
Mr.. Vanderlip said he would lay down
the principle that the allied debt was
Just debt, legally and morally, and
whether it could be paid or not It
should be cheerfully and gratefully
acknowledged as just debt.
"Next, I would want America to
be both an intelligent and lenlent
creditor" he continued. Terms OF
payment ought to be adapted to the
means Of our debtors. In that respect
we should take the action of the al
lies in fixing the terms OF the m
demnity as an example to be avoided
rather than followed.
"The crux of my plan would lie
in the disposition of the payments.
II would have America make
beauieste, grand gesture in inter
national relationship. While de-
manding that the payment be made,
would have America say that she is
prepared for the present to forego
the receipt Of it."
Concerning what should be done
with the money paid back Mr.. Van
derlip said:
IL would like to see every dollar
that can ever be paid to US by our
debtors for years to come devoted TO
the rehabilitation Of European civili-
zation. 1t is only through such re-
Mobilization that these debts can ever
conceivably be paid. 1t is only
through the rehabilitation of Eu-
ropean civilization that America can
yer conceivable realize in full meas
ure her destiny or can expect fu.!