The New York herald., 1922-07-26
VANDERBILT AGAINST
LOANS TO GERMANY
Asserts Small Amounts
Would Only Give Relief of
Temporary Nature.
CRASH IS INEVITABLE
-arns America to Keep Out
of European, Financial
Affairs Now.
FEARS WORST WILL COME
Advises U. S. to Insist Allies
Formally Recognize
War Debts.
FEARS WORST WILL COME

Special Cable to THE New YORK HERALD.
Copyright, 1879, by THE New York HERALD.
New York Herald Bureau,
EerIin, July s5.
Small loans by America will not
help Europe but merely postpone a
general crash, and until the situation
changes it is best for America to keep
out of European finances" said Frank
A. vanderlip, interviewed by The NEW
YORK HERALD correspondent to-day.
Mr.. Vanderlip thought that gen.
eral financial collapse in Germany
would not affect American business
vitality. Economic fear need not drive
us to help Europe, although there Is
every moral reason why we should
he declared. II do not see how, mo-
mentarily, we can wisely help Europe.
Small loans would only defer the fatal
day.
"Europe's troubles do not lie in her
Indebtedness TO America" he explained.
because Europe is not giving that OBJ
legation the slightest serious thought.
The matter hasn't even, any psyche
logical weight, as no nation Is paying
even the interest due the United
States"
Central Europe Faces Crash.
Mr.. Vanderip has visited the prin-
cipal cities In Austria and Germany,
and has reached Berlin. on his way to
france and England. He has had con-
yersations with the leading statesmen
and business men of Germany. and
lunched to-day with Chancellor Joseph
Wirth. He has received the impress
sion. he said that Germany with all
central Europe, is on the down grade
Tor financial crash.
II find the role of Cassandra," he
said, "a thankless one. and one OF
which / am tired. l have searched
Europe with great care for hopeful
features; and l challenge Col. Mulberry
Sellars to take an optimistic view OF
the German Governments finances, OF
Germanys industrial and financial out
look. Frankly, the situation is grave.
"The progress of Germanys financial
decay will not follow the same lines as
Austria's has followed, because there
are essential differences. Germany has
a population ten times greater. and con-
sequently her problems are ten times as
maintained by Austria, but where are
the funds to sustain 60,000,000 Ger
mans? The German temper is not like
the Austrian. German workers will not
take deprivation and misery lying down.
Germany has hardly started drinking OF
her own cup of misery. The real trial
Is ahead and Is likely to become ter.
rible burden upon the German people.
"Austrias collapse was so gradual
that the world came to believe normal
life could continue uninterrupted
through imitation. But unparalleled dis.
organization would follow In German
industry and finance long before the
mark reached the level of the crown.
symptoms Beneath Surface.
1.-THE symptoms of impending collapse
are beneath the surface. The first indi
cations are found in the slowing down o.
industry. If existing financial condition:
are not Immediately improved. indus
trial stagnation is inevitable Industry
IS caught between, fatal alternatives L
the mark should rise. or even decline