New-York tribune., 1921-12-18
VanderlipUrges
A Reserve Plan
Bank i'm Europe
Financier Says Institution
Would Furnish Sound,
Uniform Currency Abroad
and Save lettering Nations
Capital Set at Billion
Notes To Be Insured Against
Imitation Needed; Peril
of Over Credits Shown

The establishment in Europe of a
bank TO be operated along the lines of
the Federal Reserve system in this
country, which would furnish sound,
uniform currency to various European
countries, was proposed last night by
Frank A. Vanderlip at the ninth annual
dinner of the Bankers Forum of the
New York Chapter, Inc, of the Ameri-
can Institute of Bankers. The dinner
was held at the Commodore. and was
given in honor of Colonel Thomas
Branch McAdams, president of the
erick c. Metz jr. chairman of the
Forum, presided.
Mr.. Vanderlip outlined his plan for
the establishment of European bank
in his address ON economic conditions
as he found them in Europe. He de-
clared that present conditions, if con-
tinued, will result in the collapse OF
some European nation; and that the
effect of such a collapse will be felt
in this country.
New Currency Needed
In speaking of the need of stable
derlip said:
"There must be a new currency
some substitute currency, currency
that will be disassociated from the
Government Printing Office. 1t should
be- currency that would not be in
flated with the needs of the govern
ment. Whatever currency it mightSbe
it would in some way have to be re-
lated to gold. The idea that some sub
stftute may be created for gold is fall
lacious, and there must be found some
way of creating new currency that
will serve the needed purpose"
The bank, he said, could be oper-
ated in six or eight European coun-
tries and might be known as the Fed
eral Reserve Bank of the United States
of Europe. He declared that by pro
viding a standard currency the bank
could prove itself of vast benefit at a
critical time and would be able to play
no small part in bringing about Eu-
ropes economic rehabilitation.
Mr.. Vanderlip said that the bank
might be formed by a group of nations
and possibly be capitalized at $1,000,-
100000. He said that the concern
would have no particular nationality
but that it could be incorporated under
the banking laws of the United States
anu stndC LD6Tc COuiQ Dc OISdLlZ6Q IN ali
countries, in which the bank operated
institutions similar to the Federal Re-
serve banks scattered through this
country.
Economic Farley Urged
Europe is in such condition, Mr.
Vanderlip said, that it can be saved
only through some comprehensive plan
An international economic conference
he said, must be called at an early
date. The adoption of such plan as
he outlined could be brought about
he said, through this conference.
He predicted that at this conference
there would be present representatives
of former enemies of the Allied ma
tions, and declared that, in event at
such conference, Europe signified its
willingness to have Federal Reserve
system, guarantees for it's protection
would have to be given.
In speaking of imitation as the de.
stroyer of national morale, Mr.. Van.
derlip mentioned Austria as being one
of the worst exemple of the several
countries in Europe. In Austria, he
declared, the governments financial sta
bility has sunk almost to zero. He de
clared that he had just learned that
dollar in Austria had been sold fol