Evening star., 1921-11-29
WANTSWARDEBTS
USEDTOA|DEUR0PE
FL vanderIip Urges Putting
Billions Allies Owe U. S.
Into Rehabilitation.
By the Associated Press.

NEW YORK. November 29-Recog-
milton by the allies of their eleven
billion dollar debt to America as a
just debt. agreement by. this country
to easy payments and the money thus
repaid to be used in rehabilitating
Europe, was "a plan proposed last
night by Frank A. Vanderlip, New
York banker, for settling the obliga-
tions Of the war.
Mr.. vanderlip, who returned recentt
ly from Europe, where he made an
exhaustive study of economic condi-
tions, spoke before the Economic
Club. He said he had discussed the
debt with the leading responsible
government ministers and hnanciers
of Europe and nearly every nation
admitted inability to pay.
The United States would be hurt as
much by the rapid receipt OF payment
in the form of goods. the only posi-
BILE form OF payment In view OF the
Decentralization OF foreign exchange,
he said. as the allied debtors would
be harmed in making the payment
Discuss Forms of Payments.
.The full consequences would be
could be made and were made with
any degree of promptness. We need
not look further than to contemplate
merely the receipt of $50O,O00.00o q
year Of interest. If that came IN the
form of goods, our Industrial SIT s.tuao a.
an extent we have not heretofore ex-
perienced. The effect upon our LABOR
situation and the consequent s0cai
problems which would be realized
would be menacing."
AS the first postulate In his plan'
Mr.. Vanderlip said he would lay down
the principle that the allied debt was
a lust dept, legally and morally, ana
whether it could be paid or not, II
should be cheerfully and gratefully
acknowledged as a just debt.
"Next, 1 would want America to be
both an intelligent and lenient
creditor" he continued, Terms OF
payment ought to be adapted to the
means of our debtors. In that re-
specr we should take the action OF
the allies in fixing the terms OF the
indemnity as an example TO De aVoio-
ed rather than followed.
1.-The crux of my plan would Iie IN
the disposition of the payments.
II would have America make a beau
jeste; grand gesture In interna-
tional relationships. While demand
ing that the payment sr,ns s.H be that maze: .bs
is prepared for the present to forego
the receipt of it."
How to Dispose OF Money.
Concerning what should be done
with the money paid back. Mr. Van
Il would like to see every dollar
that can ever be paid to us by our
debtors for years to come, devoted to
the rehabilitation Of European civili-
zation. 1t is only through such re-
habilitation that these debts can ever
conceivably be paid. 1t is only
through the rehabilitation of Euro
pean civilization that America can
ever conceivably realize In full meas
ure her destiny or can expect full
measure of prosperity for her people.
He believed a plan for the develop
ment of eastern Europe could be laid
out, he said. comparable to the vision
our forefathers had when the latent
possibilities of our great west were
unfolded to their minds.
"Everything the war has COST he
added; Everything an unwise peace
is costing. can be recompensed, and
beyond that a great economic margin
created, if eastern Europe can be put
in order. can be helped and led wisely
to handle its own problems II the
people of eastern Europe can be made
to comprehend their economic unity
If they can be brought to understand