Show Shows Ne Ned d di i Of International Bank i I i To Save Central Europe CY By EDWARD THIERRY Copyright 1921 N. N E. E A. A Service SC SCARBOROUGH N N. N V. V Deg Dee 16 Will Kurop snuggling with a crucial eco eco- eco economic co- co PI do pt Frank t a A A. A Vana ri r- r i i lips lips' International bank plan lan lit iii ht order I to get Ket back On an Its f fet feet et i Th rh re famous financier bark back from rom many manyI j I n survey of or Europe says saya the Ii- Ii I Ual e n mint ut come corne from acro ss s the water t I I l have e simply raten the tion he sy aj I j In in 11 Interview at Beechwood his hta home borne Iome here lIer where he hes he's Is a at work on a i book dealing with Europe's Europe s financial Ills I I to be published shortly In lii six m languages I I gave N ih i 1 E. E A Ser HerIce I ce Is first elaboration n an and th U plan lan nd end d d's ds acus us- us ed d its eff effects ct j CENTRAL EUROPE NEAR COLLAPSE i of a central bank ban Is 19 i I II 1 I necessary f he lie said because the coun- coun j coun-j I d r ril d M of or central Europe are h headed for I I collapse e This l is not nos a mat matter er of or prediction Some of or them have ha collapsed already i Austria Is an example I The Inevitable effect of or governments printing billions cf rf f fr- fr fresh th h paper I I I currency is continued d depreciation of or their I As ta mone moneys things stand tan i now there Is la no es es- es cape cope for or perman She Is not balancing cs 1 i her hr domestic by many billion billions to j l u aa say nothing of paying her reparation bill It U ly fa not certain that an adjustment of or the re reparation pa rut Ion demands would save I Germany from financial collapse But it U Is la certain that unless there lit is n R change I In those demands collapse will follow MORATORIUM NOT REMEDY j Can the two vo year two ear moratorium now i I being discussed save sate the situation was a d k 00 A moratorium would be only a postponement post- post he be sold said 8 Much more Is la nee nee- I 1 I e error igar A moratorium would delay the I ye It would not J avert ert It It sItuation I I I was wag cited dated as havling hay hay- l ha ling Ing th the most serious world effect Van Van- I 1 said gold a collapse there would be i so contagious as to seriously affect all aU Europe j You can cnn figure for or yourself the disaster die die- aster of or I a German German- financial collapse I he said sold I Consider what It might I do tl to M France a trance a nation that has bas francs In short term notes noles afloat most most- mostly ly Iy running sir sis months notes months notes th t are backed In the main IJ by the hope hope of f C an Indemnity Think what that mE at ns-at at normal exchange WOl worth th of or notes that would be e rendered doubtful by a German collapse It might be the j I se seEd d o of revolution re AMERICA AMERICA BLAMED FOR RIOTS van le then made this sensa sensational statement The Tho United States was wholly responsible for or the riots in Vienna on December 1 1 I We Va Ve have been Leen feeding reeding Vienna's children chil children chil chil- dren he explained but we have proffered proffered prof- prof bread in one hand and arid a brickbat In the other It was an unconscious brickbat however 1 venture to say ay say that not people peo peo- pie In this country know that because we did not subordinate a claim for 24 the United States Ara grain n corporation corpora corpora- tion Uon had against Austria Austria for grain fur fur- nb hed since the th war Austria Is stacy stacy- ing InA and therefore rioting this ter Winter win Win- All AU I arrangements were Mere made don and anI elsewhere In London Lon Lon- London to give Austria new loan Joan o of 3 to tide her a the winter Other over claims had to be subordinated sub sub- to the tho new loan Joan livery Every lou icu u- u nation tria having claims against Au- Au subordinated its claims claims- The path was w.-n r cleared except ePt for the grain t claim al corporations cor cor- or- or I NEGLIGENCE CHA CHARGED GED I We pay y to 0 little 3 attention to ical I European that the we critIcal critical crit crit- did not rU fuse e even cven to subordinate get tip lip enough the interest to refuse re- re te-I te re claim It I tied was WRo up with other International matters mat- mat I before congress and we did note note- j I In Ing about It It ft J In Europe Europ the they think we have I I a program that would tenet The rhe Austria OV over r. r riots Decem December er 1 are ale the forerun- forerun I ner of I something Infinitely worst worse terest said he has found round much Interest interest In- In aroused here In his proposal announced announced an an- J J Europe Just after his return to fla n u its pay tremendous cIous debt to Atner- Atner ica lea a by bS' using using- it in the first instance a as revolving funO fune of credit to tate renat r- r European countries instead of or running run run- ning the risk of or dislocating American terest Industry in by having It It paid here Interest In In- In Interest the debt subject ho said was eclipsing interest in the bank plan The two proposals are entire entirely associated disassociated dis dis- Is he explained I 1 think thero there a chance for both to be I found the bank plan well received by European Eu- Eu financiers much financiers much better than lIlan I expected The effect o of the international bank r International t he bank bank i said would be to make the American American Ameri Ameri- can dollar the uniform currency of of many I European countries countries countries-an an almighty dol dollar dol dol- lar lar In fact act DOLLAR BETTER DETTER THAN PAPER there be a sentimental ob objection ob- ob against replacing foreign moneys mones marks and and lira Bra and haps perhaps per per- eventually francs and sterling with with a foreign dollar was asked d Perhaps he said But they might i j as well come to It A good god dollar better than I id is J t worthless domestic paper P paper I said fald the bank would be bo oed aft at after r the federal llEra reserve mod mod- I I s system stem but would not be lie a part pall o of oit it il it as Sell Sea Seni SellI j i ator Owen of or OJla Oklahoma i has ia suggested lie Ile thinks such i procedure might be lan dan of 4 For all of or Europe he explained a 1 j i billion dollars gold hold reserve would lie be I nee nee- I essar essary But BUl it should be he started gradually grad- grad Only about a fifth of or that surp sura A 1 I Countries would be necessary necessary- for the half halt d dos dl plan first which might adopt the t ba lid I countries These would v be I he the sic Austria financially perhaps Po Jugo Slavia Bul and nUm Rumania nia I I other Jt Tt could be extended J Countries countries later lour our Foreign F federal dollars nl's would be Issued 4 JI 20 reserve notes backed b by per cent gold reserve Thus gold I would furnish a billion dot dolla I 1 In currency for tor the the- countries I ha Ita mentioned The big hig thing Is that tha i would establish enable manufacturers a uniform and currency currency- ai have merchant merchants j a. a basis bests for i co co I tract tracts 1 j r The redemption of these foreign r d dc Jar lar notes In gold would be I suspended as are Bank of or England not nol nc i Ihs would prevent hoarding j The bank should be financed ed prine pally by Investors in this country T The would be vast benefits to America Americ the investment Itself and in the sta stab nation of wo world i Id trade foreign goven ments would have nothing to do wi wi withe the tle hank bank for It would deal with ne Individuals l nor governments go but simp dl discount lt commercial paper hel held helcl 1 by o oth bank banks Just as our federal reserve b bar does dofos All J speaking briefly of his o oth proposal to use r Europe's es e's debt to ro Ame for the rehabilitation of or Europe's Europe ec eCI nomie structure said the plan was was' rit n-I altruistic but hut predicated t nl tl on the s iOU 1 business principle of helping a debtor he could his debts pay pa rather r than cr crush Ing him himo o 10 o he lie never could pa J lie iTc al alo o Proposes propose that the admi be l kept ept out of the hands of o c eon con gres grei lonal committees He lie nonpolitical suggest sug commission with Herbe Hoover It Its at head t |