POLAND HER PROBLEMS AND HER FUTURE BY His Excellency HUGH GIBSON American Minister to Poland AND SAMUEL M. VAUCLAIN President of the Baldwin Locomotive Works AMERICAN POLISH CHAMBER OF COMMERCE AND INDUSTRY 40 West 40th Street New York .^6 AO THE ECONOMIC FUTURE OF POLAND BY SAMUEL M. VAUCLAIN President of the Baldwin Locomotive Works THE IDEALS OF POLAND BY His Excellency HUGH GIBSON American Minister to Poland ADDRESSES DELIVERED AT THE INAUGURAL LUNCHEON OF THE AMERICAN-POLISH CHAMBER o/COMMERCE and INDUSTRY AT THE BANKER'S CLUB, NEW YORK CITY May 27, 1920 ^|\ LIBRARY OF CONGRESS REC&IYEO MAR3-1921 DOCUMENTS DIVISION POLAND: Her Problems and Her Future The Economic Future of Poland By Samuel M. Vauclain '0 you Mr. President, your excellency, and you my Business Friends of this United States, the greatest and best of all abid- ing places this side of Heaven, I give greeting: Today we have met to place in active service a new organization launched but a few short weeks ago and known as the American-Polish Chamber of Commerce. The President selected to preside over this Our debt new organization is especially fitted for the posi- ^^ Poland tion on account of the position he holds. He is Vice President of The Baldwin Locomotive Works and has entire charge of the foreign busi- ness of this company. What a future there is for this new chamber! Its power still undeveloped will unite two great peoples through business channels in an indissoluble manner and in a measure will return to this new Poland some of the debt of gratitude we all owe to the old Poland whose heroic sons aided so greatly in establishing this nation and this government of the people. POLAND: Her Problems and Her Future Have we, American business men, become so absorbed in the American Dollar, whose eagle conveys to one's mind its fleeting character, that we are blind to the extreme necessities of our sister republic south of the Baltic and sand- wiched between Russia and Germany, or more correctly speaking, between the devil and the Deep Sea? The free state gy wonderful foresight of our land distribu- oj anzig ^^^g during the Peace Conclave, Poland has been launched without her rightful outlet to the sea, the port of Danzig. A free state has been created for the purpose of adding complication and ex- pense to Poland's exports and imports by the sea. But Poland is brave and resourceful. She can get along without Danzig, but, believe me, Danzig cannot exist without Poland. Already it has been found necessary to permit Poland to operate all railways in this free state so that something can be accomplished toward maintain- ing the business of the port and furnish employ- ment to the Danzig people. Poland in Poland to me appeared to be in splendid splendid condition ! Naturally that section over which the «P^ armies of Russia and Germany had fought back- ward and forward for more than four years does not compare with the Eden of France, but, my friends, every peasant, every business man, and every financier in Poland is up and doing, thus assuring Poland's future. 6 POLAND: Her Problems and Her Future Instead of sending my office boy to this country I went myself as the company which I represent had by my persuasion sold this new untried na- tion, as it is called, many milhons of dollars worth of locomotives. In fact, we have been the pioneers in this trade and hope circumstances may permit us to continue. AH business now must naturally be done on a credit basis of some sort; but do not be afraid, my friends, your money will return to you with interest, and when you go before your God you will learn that your acts toward this new government will have been recorded. America can spend miUions of dollars if so Want aid inclined sending food-stuffs and clothing into to work Central and South-Eastern Europe, but no per- manent good would ensue. These wonderful peoples in their effort to rise from their ashes of a long continued war do not want charity; they do not want you to pauperize them to the sHghtest degree. What they do want, and which they pray for constantly, is your confidence in them, and a willingness to trust them for a period of time for such machinery and materials of all kinds as will enable them to work, work, work — to develop their resources — to export their surplus and by their own earnest effort become strong, self-sup- porting, and dignified. If you think this new government of Poland is weak, forget it. My business dealings with the POLAND: Her Problems and Her Future Minister of Finance of Poland, in the city of Warsaw, were more quickly and satisfactorily transacted than were previous similar transac- tions with our own government, and I was impressed with the breadth of view and the con- fidence shown in me — a stranger, but an Amer- ican. A lusty infant It is true that Poland as we know it was born country \^^i ^ y^^iY and a half ago. Most people consider the child a weakling, but after personal observa- tion, I challenge the statement. This infant re- public has already passed the bottle period and ''Beefsteak and Onions" will hereafter do the rest. ''Beefsteak The mission of the American-Polish Chamber and Onions' jg jq promote trade, between our countries. Trade is the ' 'Beefsteak and Onions" previously referred to. First is needed a few locomotives to tide over the situation, until the locomotives now there can be repaired and placed in service. Locomotives in Central and South-Eastern Eu- rope were as observed by me of three classes — Locomotives 1st, Those that could never be repaired to are needed ^^^ again dead. 2nd, Those awaiting general repairs but with- out hope as no machinery or materials are now available. 3rd, Those that are running — All afflicted with the "Rickets" due to lack of attention and nour- POLAND: Her Problems and Her Future ishing food — and liable to expire at any time. The shrieks of the whistles of good new Bald- win Locomotives can now be heard throughout northern Poland and may I ask you to say who will come to the front and supply a similar num- ber of the south of Poland, the land of great mineral wealth — coal and oil in endless streams could be exported if only transportation were at hand. As soon as transportation can be bettered all sorts of textile machinery and materials are needed to employ the peoples who are restive for action. Finally agricultural machinery to cheapen and increase production, but at present more food- stuffs are produced than transportation facili- ties can distribute. I could tell you of this very wonderful country / want and its people much more — I have only touched action upon the matter, but what I want now is action from you. I want not that you take my word for your guidance, but do as I have done — go see for yourself — go see the government min- isters. You will find them men like yourselves. If you will do this I am not afraid of the result. Since my arrival home last Sunday from Poland and South-Eastern Europe, numerous articles have appeared in the newspapers of the country based upon interviews with myself, Dr. Taylor 9 POLAND: Her Problems and Her Future and also a Red Cross speech by one of my most respected friends. It is true that $500,000,000. could be spent in Central Europe to feed that per- centage of the population which is willing to accept alms. Give credits Have you ever thought how many hundred not alms millions might be spent right here in the United States for the same purpose? But even after such a sum would have been spent in this manner what would we have accomplished? Nothing, absolutely nothing — we would only do harm, for by putting off the day for which all are looking and praying, the day when honest work will be theirs, we merely increase pauperism far beyond the point it has now reached, and, therefore, unless we cease to supply mere sus- tenance to those who are needy and may accept, we are sure to more permanently injure these wonderful peoples. The use of It is the general opinion that the five hundred large funds millions of dollars suggested by my friend toward the relief of Europe is, owing to his connection with the Red Cross, considered entirely for the physical relief of those who are in distress and in want of food and medical attention, but if I understand his proposition clearly, it is intended that were the government to provide such a fund, that it should be administered by three reliable business men so that from this sum of money so appropriated by the government of the United 10 POLAND: Her Problems and Her Future States, that the tools and material could be pro- vided whereby these people could at once begin to earn their own living, and that merely the support necessary in the interim to provide against complete disaster would be taken from the sum so appropriated. But there is little hope to us in this direction as after a week's careful inquiry among those in Washington, through whom such an appro- priation would have to be made, I have ascer- tained that at the present time no appropriation of any kind will be granted by this Congress, therefore we must look elsewhere for immediate assistance, and we, ourselves, must blaze the way. But what, my friends, is to be the remedy? Work cure May I impose upon you to explain my diagnosis i^^ "^^ ^^^^ of this very complex situation — made after a careful survey of the entire south-eastern section of Europe, from the Baltic beginning at Danzig south to Warsaw, Cracow, Lemburg, Czernowitz, Bucharest, Belgrade and Trieste. Work is the remedy, my friends, nothing but everyday hard work, and hundreds of thousands of anxious hearts and willing hands are ready to seize upon the first opportunity that is offered. You all know that I am a locomotive builder, and when I urge as first aid to the injured a few new locomotives, please do not attribute my action to selfish motives — I do not see how the 11 POLAND: Her Problems and Her Future Baldwin Locomotive Works can do much without material assistance. This company has already sold Poland 150 locomotives, Belgium 75 loco- motives, and just recently Roumania 25 locomo- tives amounting in value to more than $15,000,- 000 and all on a credit basis. This company was willing in so far as its capacity could be en- croached upon to assist Serbia, and Czecho-Slo- vakia in like manner, and when in those countries, I partially agreed to do so depending upon assistance from the War Finance Corpor- ation. ISeed of War Imagine my mortification to be told upon my Finance body arrival here that the War Finance Corporation had ''blown up" and could no longer make it possible to advance credit to central and south- eastern European countries for those things now needed to put work into the hands of the poor, and make transportation of foodstuffs, supplies, exports and human beings more normal. If you gentlemen could travel from Warsaw to Bucharest, via Czernowitz which takes you through Galicia, I am sure that an unanimous appeal would upon your return be made to the Secretary of the Treasury to place in action once more the War Finance Corporation with the same executive head, Mr. Eugene Meyer, for the pur- pose of enabling you to furnish the machinery and materials, that are, far more than foodstuffs, vitally necessary to these people. 12 POLAND : Her Problems and Her Future Imagine, Gentlemen, — men, women and chil- Waiting three dren with standing room only inside the cars, ^^^J^^ f^^ crowding the platforms and steps and lastly com- pletely covering the car roofs — perfectly happy, however, that at last they were on a train and on their way — I talked to women at wayside stations who had waited in vain for three weeks for stand- ing room only in which to ride. What would you say if on a business trip you were to be left standing in a railway station en- route for several hours, because your locomotive had been cut off to move a freight train to the next station and you could not move until it had returned? Shops, with their roofs destroyed and walls ventilated by shell holes were being used while slow repairs were in progress — I saw no despair, gentlemen, I saw nothing but the cheerfulness of health, and a thankfulness that the Germans had left them at least a remembrance of what they formerly possessed. I saw nothing to support the cry of destitution, Saw no disease and despair in these countries; such con- despair ditions may prevail in Vienna and Budapest, be- cause their great cities have been stripped of their supporting territory and they must go down. What I experienced in Poland was repeated in Roumania and here I was entertained by the King and Queen — Brave Queen of the Rouman- ians — She knows what her country and her 13 POLAJND: Her Problems and Her Future people need — work — and to enable them to work she is bending every effort toward securing ma- chinery and supplies to put the transportation of the country in working order, and to enable her workshops and factories to open for the employ- ment of the common people. I have asked English builders of locomotives to assist us and take orders from these people. I have explained how this can be done on a barter basis, and I expect shortly to hear good reports. The machine tool builders of America should especially interest themselves, and here through the instrumentality of this chamber offer that relief to Poland which can only come through them. Government \ trust that you will also use every effort to bring about a resumption of business by the War Finance Corporation as without some such gov- ernmental assistance our meager individual abil- ity to finance long time credit sales will prevent the rapid relief these peoples require, deserve and must have. In conclusion I hope that there will be a will- ingness among you to become members of the American-Polish Chamber of Commerce and lend your influence and resources toward our work. I also desire to call your attention to a loan of fifty millions of dollars which the Polish Gov- ernment is now starting to raise in this country, 14 assistance POLAND: Her Problems and Her Future and chiefly among citizens of Polish birth and descent, are wilhng to co-operate in the financial restoration of their country. It is also expected by the Polish Government ^^^ ^^^ that a certain number of American Business Men ^ ^^ ^^^ will take an earnest part in this loan, and sub- scribe themselves. This loan is an investment secured by a people having already shown re- markable capacity in solidity and recuperation. 15 POLAND: Her Problems and Her Future The Ideals of Poland By His Excellency Hugh Gibson American Minister to Poland I WAS considerably dismayed to be asked to tell all about Poland. I was a good deal more dismayed to be asked to do it in about five minutes, because sometimes when I get started talking about Poland, it is hard to stop. Optimism is About all I can undertake to do is to utter essential ^ ^^^^ ^£ optimism, which I do feel is essential to any intelligent action in our dealings with Eastern Europe. I think that our friendship for Poland would not be well served by blinking the very real problems that face the Polish Gov- ernment, the very serious obstacles that remain to be overcome. It is perhaps safe to say that no government, since orderly governments were established, has been faced with so many serious problems, so many vital problems, at one time. But to my mind the essential thing is not the magnitude of the problems, but the manner and the spirit in which they are approached. And it is in that phase of the matter that I find ground for optim- ism. 16 POLAND: Her Problems and Her Future I would like to point out that we must not try Think in to estimate the situation there on the basis of our P^^^^d's own standard at home. The people of Poland ^^^^^ have a capacity for suffering, and for recupera- tion that we have no idea of. And we must try to think in terms of Poland. I had a friend who came to Paris early in the war; he came from Trenton, and he found that they did things in a peculiar way in France, not the way they were used to doing in Trenton. One day he said to me, '"^You know, Gibson, I find there is a whale of a lot of difference between Paris and Trenton, and you notice it more in Paris than you do in Trenton." So we must try to remember the difference between Washington and Warsaw, and I can assure you we notice it Warsaw and more in Warsaw than we do in Washington. Washington I won't bore you with a detailed statement of the problems of the Polish Government, but I would like to run through rapidly some of the more vital ones that are generally overlooked here. For one thing, Poland has practically no settled frontiers, with a consequent inability to dispose of the rich natural resources of Silesia- Teschen, Galicia, and the great forests of the East, until she has reached some sort of a solu- tion of those problems. That is not a matter that lies in her hands. She is waiting for plebis- cites; she is waiting for a new Russia to emerge from chaos, with whom she can conclude agree- 17 POLAND: Her Problems and Her Future ments as to her Eastern frontiers; she is doing every blessed thing she can in maintaining or- derly government within the limits held by the Polish Armies. The typhus Then, too, there is a great typhus epidemic; epidemic Poland is doing everything she can to take care of that, and is fighting that typhus epidemic with inadequate supplies of medicine, and inadequate personnel. She is trying not only to clean up her own house, but to protect the houses of her neighbors, and it is up to us to try to help out on that campaign. We are doing pretty well, and the Secretary of War is trying to keep up a big sanitary personnel there, under the command of Colonel Gilquist. If we don't do it, we will have to pay for it very heavily, by having to fight the typhus at home. The financial situation is another very difficult one, but it is being met with spirit and energy, and I have confidence that they will straighten it out, with the success of this loan, the reestab- lishment of exports, and the resumption of in- dustry. Fighting a ( Poland has a costly war on her Eastern fron- costly war jj^j. p^^^ some of US think that she is fighting the battles of the world when she is fighting the Bolshevists. That is a very costly thing, both in human effort, and in money, and in supplies. Fortunately, she is fighting now with supplies taken from the Bolshevists^ POLAND: Her Problems and Her Future Another problem is the idevastation of the Working whole country, a devastation of which we can "'^^"'^^^ have no conception. After four years of great armies, being swept backward and forward across that country, deliberately destroying, ravaging the country, burning down houses and villages, the fields have become overgrown with brush, and even with young forests. The Polish people have gone back to work like a lot of ants. They are living in holes in the grounds, in old trenches, in dugouts, sub- sisting on grass, and roots of trees with occasional beets and turnips, while they rebuild the old homes, and bring the fields back under culti- vation. That may sound like the vaporings of a sensationalist, but it is only too true, as I have seen in wide stretches of Eastern Poland. Those are just a few of the immediate and Misunder- pressing problems ; they have plenty more. Then stood abroad they suffer under the disadvantage of being mis- understood to a certain extent abroad. For one thing, the Poles are supposed to be very agres- sive, and to be chiefly concerned with picking quarrels with their neighbors. I don't think that needs any agrument. The events of the past year dispose of it pretty effectively. When I went to Poland, there was not a mile of frontier that was not held by some active enemy. The Czechs on the South were driving the Poles out of Teschen; the whole frontier was boihng with excitement 19 POLAND: Her Problems and Her Future and resentment. The Germans held a frontier that extended all the way from Upper Silesia to Lithuania; there were daily bombardments that took a toll of lives, and ruined towns. Where the Germans stopped, the Lithuanians began, and there it was very lively, up to the point where the Bolshevists took up the work. They stretched away South to where the Ukrainians were fight- ing, and that completed the circle. Keeping General Pilsudski and Mr. Paderewski set to peace with ^qj.]^ ^Ni\]l great energy on that question. They 'le^g ors j.^^]J2ed the importance of it, and what they have accomplished is a great achievement in construc- tive statesmanship. Today there is no fighting on the German frontier. By patient work, they got the Germans to withdraw their troops. They have reached an armistice with the Lithuanians. They have submitted their troubles with the Czechs, first, to arbitration, and then to plebis- cite. The Ukrainians, who were active enemies a little while ago, have been turned into active friends, and are now fighting side by side with the Poles against the Bolshevists and except on the Bolshevist front, there is practically not a Polish soldier on any frontier of Poland — the frontiers are held by customs guards. Enthusiastic Then there is the charge of militarism. The patriots P()]^g ^j.g supposed to be careering around mili- taristically. They do take a great enthusiasm in serving in the Polish Army, but they waited one 20 POLAND: Her Problems and Her Future hundred and fifty years for the privilege of marching in those ranks under their own flags. I think we might have a Httle enthusiasm, too. in that way. Then there is another httle charge — the last one I will trouble you with — of imperialism. They are supposed to be setting out to conquer the world. As a matter of fact, that charge grows chiefly from the clamorings of a small group of people who do not represent either the govern- ment or the sound public opinion of the people. Nobody pays any attention to them in Poland, but I am sorry to say they get some sort of hear- ing abroad. But both the government and the people have ^ strona made it clear repeatedly that they realize just people with as a matter of sound common sense that the thing many friends for them to do is to set up an effective government within a territory that is Polish, not only his- torically, but in the desire to be governed from Warsaw. They also realize that if they support the neighboring peoples, like the Lithuanians, and the White Russians, and Ukranians, with sympathy and active support, the natural ten- dency will be in time for these peoples to turn to Poland for support and cooperation. It will be establishing a group that will be strong with the strength that comes from the willingness of all the people involved, and not from the domin- ation of unwilling nations. 21 POLAND: Her Problems and Her Future Order out of When I went to Poland a little over a year wars chaos ^^^^ £^j, ^j^^ g^^g^ ^.-^^^^ ^^ rather a few months before I went there, it was a country without a government, practically a howling wilderness from end to end, a country without any organized railway system, or distribution of food, or any of the normal facilities of modern life. Today there is a very distinct contrast to that time. Orderly government is maintained throughout all the territories held by the Polish Government. The railway system, while not yet perfect, is rap- idly getter better. Food distribution is improv- ing day by day, and altogether, there is a decided progress. And, in spite of the sufferings of the past six years — sufferings that we can hardly un- derstand — the progress of the past few months has been sufficient not only to keep up the high morale of the Army and the civil population, but to key them to a higher pitch, which gives us every reason to hope that Poland will pull through, overcome all her obstacles, and estab- lish herself as a center of orderly government, that is essential to the maintenance of order and peace in Eastern Europe. 22 LIBRARY OF CONGRESS 003 402 424 8 •