New-York tribune., 1921-10-29
Soviet Showing
Signs of Break.
anderlip Says
Russia Is Realizing Com
munist Ideas Will Not
DO, Declares Financier.
Who Met Reds Leaders
Trade EFF rtsDiscouraged
He Asserts an International
Loan Would Be 'Unthink-
able; Explains Bank Plan
By Joseph Shaplen
Specfn1 CobTo IN g,b- r-~Ih,,x~


Copyright. 1921. New York Tribune Inc.
BERLIN, Oct. 2s.-Frank A. Wander
lip admitted to the Tribune corre-
spondent to-day that he had con-
terred in Constantinople with rep
resentatives of the Moscow Soviet
government on his recent trip to
the Balkans in an effort to find out
what the possibilities Of trade with
Russia were. AS the result of those
conversations with Red spokesmen and
of close study of the Russian problem
since he has been in Europe, Mr.. Van
derlip said to-day:
my impression is that the Soviet
government is beginning to realize the
unworkability of the communist theo-
RES: Progress in the direction of prac-
tical application Of this realization.
however, will be very slow, for The
Soviet government is hampered by the
fact that there isn't among all the Rus
sian officials sensible acceptance of
this change in economic theory nor a
disposition honestly and frankly to
carry out agreements.
Englishmen Complain
81 hear great deal of comnls;n+
from Englishmen who have tried to
establish working economic relations
with Russia and have found it practi-
cally impossible"
Mr.. Vanderlip said that an interna-
tional loan to the Soviet regime was
unthinkable, because "the worlds opin-
ion is that the Soviet administration
lacks real honesty of purpose and faith
in its own. economic theories"
The financier, however, urged the
greatest possible effort to relieve the
Will feed an insane person though he
undo them
1t was Mr.. Vanderlip's opinion that
the United States would have nothing
to gain at present by opening up trade
with Russia. He denied that the Red
representatives had made anv trade
proposals to him.
Mr.. Vanderlip, outlining the plan he
has worked out for the establishment
OF an international bank with capital
of 81 1,000,000000 in gold, said:
MY proposal is to organize a sort
OF super-corporation along the lines of
TEN. Its corporate existence might be
created through a league of nations
that would make it independent of the
laws of any particular country. The
nine trustees, five Americans and four
europeans, would have the power to
increase the amount of capital. As
America holds most of the worlds free
gold the bulk of the initial subscrip-
tions would come from there, but pro-
vision would be made to enable Euro
peans to obtain majority of the stock
in the future"
international Currency
Mr.. Vanderlip reiterated that the
plan was not offered as panacea for
Europe's ills, but he believed it would
give some foundation to wabblinp Euro
pean finances.
When the bank had been established
It's proponent suggested that it would
issue International currency based on
the gold dollar. Five billion dollars in
paper currency would be issued against
the banks stock, and all the world
could safely have confidence in such an
institution, Mr.. Vanderlip said. The
shares would be 500 each.
Central Europe is on the verge of =
complete breakdown, despite superficial
surface improvement in some coun-
tries" said Mr.. Vanderlip. Something
must be done, and done quickly, to
avert general collapse. Russia will
be out of the European economic sys-
tenn for long time, and action must be
taken imm ediately to save Central Eu-
rope, leaving Russia out of considera-
tion. Dreadful things are going to
happen unless international action is
taken to stabilize exchange rates in
means also the revision of the entire
10 I, q ra t;onr rrnhlop,