Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1921-11-29
EUROPE BROKE
AND CAN 7 PAY
HER WAR BILLS
NOW W--VANDERL|P
Nearly Every Nation Admits
Inability to LiQuidate Its
Debt TO United States,
Banker Declares,
RECOMMENDS A PLAN
OF EASY PAYMENTS
Urges That the Money Thus
Repaid Be Devoted to the
Rehabilitation Of Euro
pean Civilization,
tBy The Associated Press.)

New York, Nov 2S.-Rec-
ognition by the allies of the'f
eleven million dollar debt 20
America as q just debt. agreement
hv this country to easy payments
and the money thus repaid to be
used in rehabilitating Europe. was
a plan proposed tonlght py rranA
A. Vanderlip, New York banker
for settling obligations or the war.
Mr.. Vanderlip returned recenllS
from Europe where he STUDIED
economic conditions. He said near
lv every nation of Europe admit
ted inability to pay the debt.
The United States would DC
hurt as much by the rapid recelpt
of payment in the form of goods,
he said, as the allied debtors wouid
he harmed in making the payment.
1--WE need not look further than
to contemplate merely the recelpt
of $500, 100000 year OF interest,"
he said. "If that came in the form
of goods, our industrial situation
would be upset"
Is u just Debt.
AS the first postulate in his plan,
he said, he would lay down the
principle that the allied debt was
a just debt.
II would want America to be
both an intelligent and lenient
creditor" he added. Terms or
payment ought to be adapted To
the means of our debtors.
"The crux of my plan would liz !!
in the disposition Of the payments. !
II would have America make a
beau jeste-a grand gesture in In
ternational relationships. While
demanding that the payment be
made, l would have America say |
she is prepared for the present to
forego receipt of 1t.
II would like to see every dol
lar that can ever be paid to us by
our debtors for years to come de-
voted to the rehabilitation Of Eu-
ropean civilization. 1t Is only
through such rehabilitation that
these debts can ever conceivably be
paid.
Everything the war has cost, !
he added, everything an unwi.e I
peace is costing, can be recon-
pensed and beyond that a great
economic margin created, II east
ern Europe can be put In order,
can be helped and led wisely to
handle its own problem, II the pep
pie OF eastern Europe can be made
to comprehend their economic
unity, If they can be brought to
that in the welfare of
all nations lies the highest pros
perity of each.
Might Repay Principal.
"For a good many years, l be-
lieve 1t would be wise for US to de-
vote all we receive to such pur-
poses as I have suggested. IL Is
possible, however, that there would
come such economic restoration
that in the end. a considerable
part, conceivabiy nearly all of the
principal, might be paid to us. In
terest money that we loaned and
reloaned for economic develops
ment would be converted from the /
original obligation of the allies tn Il
representing material Il
which we created and
backed by the obligations
Of the governments Of those coun-
tries where this economic devel- |;
opment took place. THE time might
come when we would cease to
make these sums revolving credits
for European economic develop
ment because there really woull
not be further need for us to do
so. Then the money would come
back to us.
Great Possibilities. K
II am firmly convinced that In
the great catastrophe the war has
brought. there has been created an
which could never 9TH
erwise have arisen. The obstacles
which have arisen in the path Of
European civilization can be turned IG9
into stepping stones leading to n
position vastly better than any
hing Europe has ever known. The
war has made great awakening |.
N millions of dormant minds.
rhe possibilities that there are In
society for realizing better condl-
ions for all humanity are un-
dreamed of. The opportunity has /.
arisen to make these possibilities !,