The New York herald., 1921-10-27

Spect0f CGdfe 10 THE NEW YORK HERALD.
Ccpwi0ht, 1891. by The NEW YoRK HERALD.
New York Herald Bureau.
Berlin. Oct. 20. :
Central Europe's financial ills are cur
able by an international gold reserve
bank, declared Frank A. vanderlip Of
New York, who has worked out a de-
tailed plan for the establishment OF such
Investigation In twelve European coun-
tries. lie proposes the establishment OF
a superbank with a capital stock OK
81 900. 900. 900 gold and branch national
gold banks in the countries desiring
them. The exchange between nations
would be on a dollar basis
! THE plan was presented at the request
OF a considerable number OF persons IN
authoritative government posit-ons' VINO
asked me for. suggestions designed 70
form a stable currency" Mr.. Vanderlip
said. 1T was not presented as hn Amer
lean proposition, but 1t was the prescrip-
ton which 1 would recommend Tor the
currency sick countries OF Europe. 90
rot pretend to speak with authority
whether so huge sum as 81. 100000 900
gold could be raised, but my individual
belief is that the plan is sound bank
fral Europe desire to adopt 1t there Is o
fair probability that the capital would
be subscribed. But there is no proba-
bility OF the initiative being taken by
capital
Not a Panacea.
THE plan is not universal panacea
Tor the ills of Europe. 1t will not bal
snce budgets when expenditures are
extravagant and taxation insufficient.
IT would, however, offer some firm
financial ground to stand on. on which
10 commence reconstruction OF European
finances
The plan involves a bank organized
mot under the laws of any particular
country Its corporate existence might
be created through the League of Ma
tions or in some way that raised 1t
above any particular nationality, Mr..
Nanderlip said in a statement.
Mr.. Vanderlip anticipates that the
bulk of the initial subscriptions would
be from America, but provides for an
issuesof stock in two classes-American
and European. The former would be
subject to retirement by call at 40.
The banks affairs would be ruled by
nine trustees, five OF whom would be
american. 1t would have a gold reserve
and the national banks would deal solely
viduals. 1t would make loans only
against collateral to an amount equal
to $50 per cent. of the loan made. This
collateral would be short-term CONNER
ciai paper of not over ninety days, and
strictly Of character known as self
liquidatiag paper. The bank would be
empowered to issue circulating dollar
notes, always with gold to cover 20 per
cent. The central bank would pay per
cent. dividend upon the stock of the
branch national banks.
Prescription for Europe's Ills.
WARSAW, Oct. 26 (Associated
Press) Plans for the establishment
OF the Bank OF the United States
and Europe which would have
capital of 81 .000. 900. 900. were pre-
sented to President PiIsudsli. former
Minister Slsirmunt and Minister of FL
nance Michalski by Frank A. Vanderlip.
II am not offering a panacea." said
Mr. Vanderlb, but ! am a doctor Of
fering a prescription in aid of central
Europe. The success Of the undertake
ing would be possible only il several
countries OF their own initiative should
invite a group to organize-such bank"