New-York tribune., 1921-12-06
Allies Can Settle Their Debts
To U. S. Abroad, Says Vanderlip
Financier Develops His Plan for Turning Americas
War Loans to Work TO Make Europe Solvent;
Proposes Commission Headed by Hoover

and new vigor into the European situa-
tion, and would be followed by new
demands in England and France for
the products of factories and mills:
there would be reactions on every side
that would be advantageous. and we
would have obtained for the interest
claims that cannot be directly liqui-
dated in payment to us, fresh obIiga-
tions from eastern European nations,
plus liens upon railroads we con-
structed
There would undoubtedly develop
creative programs which we might
undertake both in England and France.
There are great water power develop
meEts ready to be undertaken in
France, but in the present state of
government credit further loans for
the purpose cannot be made. 1t would
nevertheless be possible for France to
make payments to us of funds that
were to be directly expended within
our own boundaries. The productive
capacity OF France could be increased,
her fuel situation could be improved,
and the character of her obligation
greatly benefited.
England desires to construct serie
of great central electric power stations
She has all the means of doing that
within herself, but has not the
economic courage to start on such a
great enterprise in the face of situa-
ton where We may demand from her
hundreds of millions of dollars a year,
if our claims were realized in payments
made in the United States.
She could readily undertake such
construction if, for the time being, she
did not have to export goods into our
market to meet our claim. She would
increase her productive capacity, EN-
poy her idle workmen, put fresh cour-
age into her industrial and economic
situation by doing this, and we would
have in addition to the obligation we
now have the further security of the
great power plants which we're created.
Putting Debtor on His Feet
There is nothing really novel about
such a program; the only novelty lies
in the application to national obliga-
tions of those principles which a wise
creditor would apply to temporarily
disabled debtor. Help put the debtor
on his feet. Give him fresh courage.
Give him start toward increasing his
ultimate debt liquidation is improved.
That sort OF thing is done every day
as between individual debtor and
creditor The difficulty seems to lie
in thinking of the subject in interna-
tional terms.
Quite another question is raised il
connection with the carrying out o.
such a project 1t is asked whether, IT
view Of the mess that governments
have already made in conducting great
undertakings, it would be possible fol-
our government to undertake success
fully such program. IF Congress hat
to pass on each undertaking, If the
projects were handled after the man
ner in which we improve inland water
ways and construct public buildings,
would say no. The work would neec
to be handed over to properly con
stituted commission. | have sufficient
faith in American genius to believe
that we could properly construct sucl
commission. I have put it briefly By
saying that I would put Herbert
Hoover at the head of it, and would
rest easy about the results. We have
many men of high motives, of SOUND
imagination, OF technical expertness
who would render in such q connection
& very great international service.
Has Faith in americans
Some amazingly good Work mas beer
done in Europe by Americans in The
days since the arlnistce. They have
shown such a sense of fairness, sucF
grasp of method, such an ability tt
organize the forces there into SELF
helpfulness, that I know we could sue
cessfully undertake such a program al
have outlined if we could put some O.
our best men at the job. The mar
who fears that we cannot trust tht
character, good sense and ability O.
Americans to undertake work of thi.
kind has less faith in his fellow coun
trymen than 1 have. believe that W.
can.
The great task would evolve onl.
| gradually. At best we can get only
portion of this interest paid at once
We would have only to plan expendi
lures as rapidly as income d-veloped d
feel profoundly certain, however
that sensibly to start on the program
will result in rapidly developing The
ability of our debtors to pay Will
such program wisely carried out the,
can, in time, discharge their full obl
cations to us. Some part ] would Ger
tainly expend with no obligation fo-
it's direct return. We are talking nov
about remitting the debt, about scaling
it, or about cutting down the interes
for a period to nominal rate. AL