The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1921-12-23
Vanderlip Tells
Cure for Menace
Outlines Plan to Save Old World From
Complete Money Disaster

| - W tf&Au tufNi@0ru riNcr the
war. Austria Is starvlng--and there
fore rtoting-this winter.
An arrangements were made. In
London and elsewhere, TO give Aus
trta new loan OF sss.ooo. 900 to tide
her over the winter. other claims
had to be suhcrdinsted to the new
loan. Every European nation hav.
ing claims against Austria subordi
mated their claims. The path was
cleared except for the grain corpora.
tons claim
EUROPE RI.AMFs
Us FOR NEGLIGENCE
we pay % little attention 20 the
critical European situation. that We
didn't even get M enough interest
20 refuse 10 subordinate the claim
II was tied up with other interna.
ronai matters before conKress-and
we dld nothing about II.
"In Europe they think we have
blocked q program that would have
tided Austria over. The riots De
ermbcr 1 arr the fcrcrunner OF some
thing infinitely wor-e-'
vandcrlip said he has found much
interest aroused here In his pro
posai. announced Just after his re-
turn. 10 have Europe pay It's srcmen-
dous debt 10 America by using Il In
the first instance as a revolving fund
OF credit TO r~hahliltate European
countries instead OF running the risk
OF disiocntinw American industry by
having n paid here. Interest In the
A.tx ~stA - ~If<e<
interest In the bank plan
The two proposals are entirely
d,sassociat-d.- he explained. II think
there IN . chance for both to b.
adopted found thu hank plan well
received BY European finaneicrs--
much better than expected
The effect Of the international
bank. he ssid, would Be to make the
, American dollar IN. uniform curren.
cy Of many European counrie.-an
Almighty Dollar In fact,
GOOD DOLLAR Is
nBETTER THAN PAPER
! -wouidnt there be a sentimental
4 objection agatns, replacing foreign
poneyw-nsrks and kronen and Ira.
j. Ind perhaps eventually francs and
|, ltefilng-wfth q foreign doiiarT-
= Iand~riip was asked.
|, Perhaps he said. hut they
light as wen come 10 TIA good
altar 1. better than worthless do
I rstic paper
!, vanderiip said the hank would h
I, pteled after the federal reserve sys
. tn-but would not be a part Of u
I - "a
/, scxestrd. He thinks such procedure
Dht be dangerous
!, ror an of Europe he explained
4 "asillson dollars gold reserve would
!. besecrssary. Bu, II should b. start
!. edraduaily. Only about a nth o,
:. tho sum would be necessary for the
halfczen untrl-s that might adop,
thebsnk plan first. These would
BE- Ne sickcss countries financially
perps Poland. Austria. Jugo sla
= via Hungary. Bulgaria and Ru
= man- IL could be extended TO Other
cot-ries later.
frvixn dollar. would be issued
: Ike ur federal reserve notes. backed
by go per cent gold reserve. Thus
s7oose. 900 gold would furnish 4
blllin dollars In currency for III.
courses I have mentioned. Tn. bis
= thinsis that II would establish q
. unifo-a currency and enable manu-
y faettf~s and merchants 70 have .
n-frtuafing basis fer contracts
= ''Tn redemption Of these foreign
dollar sotes in gold would be tenn.
porarfk susp<nded--as arc Bank 81
Engian notes. This would prevent
hoardirr
NyEsoRs SHOULD
| F1NANE BANK
Il The snk should be financed prfn
cipaily y investors In this country
There wuld be vast benefits u
Americas the investment itself. snc
IN the xsbilszation Of world trade
Foreign governments would hav,
nothing \ do with the bank. for Il
would desl with neither individual,
nor governments. but simply discount
commercia paper held by ofhe,
banks. juz as our federal reserv,
bank does.
II Vanderiis speaking briefly Of nj,
other proDeai 20 use Europe's dcb'
TO Amsrica tor the rehabilitation oi
Europe's eoaomic structure. said the
plan was NJ altruistic but predi
Gated on TIE sound business prin
ciple Of heirng debtor 40 he coule
pay his debss rather than crushing
him 10 he rsyer could pay.
| He also Proposes that the admin
istraiion be a.pt out OF the hand,
OF congressional committees. III
suggests a mn political commission
with Herbert hoover at It's head.