New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1911-05-05
James Speyer Advocates Refusal
of Loans to BeI|igerent
Nations.
"FINANCIAL NEUTRALITY
Huntington Wilson, at Peace
Conference, Says Dollar Dl-'
plomacy Is Substitution OF
Dollars for Bullets.

offered at the third National peace 'on-
gress here to-day by James Speyer OF
the New York and European banking
house Of Speyer e. Co. Mr.. Speyer spoke
as delegate from the Chamber Of Com
merCe Of the state of New York.
He followed Assistant Secretary Hunt
ineton Wilson Of the state Department
rresidine Ger Of the forenoon session.
who gave his Interpretation of what has
been called dollar diplomacy the
newly coined phrase applied to the ex-
mansion of business interests through
the efforts Of the state Department of
the United States. The term. according
to Mr Wilson. means the substitution
Of dollars for bullets. the creation of
prosperity which will he preferred to
predatory strife" and "a practical mode
Of pursuing the ideal Of worlds peace"
Investments in Times OF Peace.
MIR. Speyer. who spoke ON "Interna-
'ional Finance as a Power for Peace"
dealt first with the influence of interna-
tional investments in times Of peace. He
said
The mines Of some If our leading men
are occupied just now with the Considera-
uou OF the extent to which the surplus
wealth Of the United States should be en-
ployed in financing Central and South
american countries thereby extending our
legitimate sphere Of influence. The con-
struction OF The Panama Canal and the
large investment which the United states
lave made in that work. have. perhaps
more than We realize to-day. extended our
political influence and responsibilities over
the whole region north OF the canal NJ 10
our own border. The logical consequence,
70 seems 10 me Of our uphodng the Mon
roe Doctrine. which makes it difficult for
foreign creditor nations to collect what is
due them in case OF default Of Central and
South American countries must be that We
ourselves assume. in more or less definite
form. the task Of assisting these creditors
10 receive what is Justly due them and Of
keeping order in these countries.
so much for the influence Of interna-
fIousl investments i'm times Of peace.
What should and could be done in times
q war boy first class powers"
There surely will occur periods in 4 ra-
TONS history when no financial investment
Will. or perhaps should, prevent nation
from taking VI arms until of course. some
other way is found and established 70 settle
heir differences The wars OF all times,
and especially OF the last century. have
shown what tremendous financial Juldens
these conflicts impose even on the victori-
9Us nation and financial considerations
play greater part in modern times IMAM
freN did OF old One frequently sees the
statement IN the papers that the Ddnhers
could prevent wars but | have so f9r
moi seen any practical way sUggestcj
whereby the banks and bankers really
could n necessary. he made TO forego thclr
oHn profits and thus make war. II not I'M
POSSIBLE. a least less frequent and shorter
While m the excitement Of the moment
patriotic feeling NAV carry nation INTO
mar. relying on its own resources. history
shows that nut very few nations in mot
ern times can carry on any prolonged ior-
elSn war with their own resources onty
How long for instance would the war be
tween Russia and Japan have lasted. or
10" soon would u have ended II neither or
the belhserentS had received financial aS-
SiStenCe from so-cslled neutral" poweIS2
Indeed, ~ might be asked whether Japan
would have embarked in this war # ner
statesmen had not known that they could
rely on the financial assistance Of England.
These great powers. France end England.
7ho 50 scrupulOusly preserved neutrality as
aid down by International law. and who
-sv 70 II that such neutrality was main
aimed by their citizens did not hesitate II
assist the belliserentS in the most eflucnt
cav 10 carry on the connict-with money.
Money enables the beligerents to buy pOyS-
der end shells and al they need TO carry
ON war. and II certainly does not seem log
'Cal that neutral powers should he allowed
70 send money when international agree
rlentS will not allow them TO send the
ships and var materials which their money
buys
Loans in Time of War.
Taking up the question Of what should
and could have been done in time Of war
bv first class powers he said we find
TODAY in Europe that in times Of peace
certain governments will not allow their
bankers 10 take and place foreign loans
in the home market unless the purposes
ror which the loan is to be used are
known and approved. and at least part
OF the proceeds are used by the borrow
ing nation for expenditures in such home
markets for the benefit Of the lending
nation. Continuing he said:
Now. # such supervision and control Of
ne bankers already exists in time Of peace
't docs not seem wide fight Of ina gina
lion 20 suggest that the great powers
might agree 10 exercise such control in
maintain. I'm future. what. for want Of
letter term might be called "hnancis
neutrality" I'm case two nations went 10
var without first submitting their griev-
6iclal settlement at The Hague. why should
tie other neutral powers not bind them
seiyee not 10 assist either OF the belHger-
ep,s financially. but 10 see 10 IL that rea
neutrality was observed by their banks and
'r'S TScte is nttle Doubt that this could be
obtained from the outside, few nations
would in tho face Of this most effective
neutrality Of the other powers incur the
peril oi bsnkruptcy some wars Woulo
that could not be avoided would certainly
s~t much shorter time.
In all financial matters of importance
one should only move slowly and with
great caution. but I DO believe that in the
course OF time measures substantlallN ON
the lines I have suggested VIII be ap-
proved and demanded Dy pubic Gp'rlon o,
The great nations and will then be carried
Ne in the United States arc proud Of be
ing called business people. nln'elrup'-
ed peace is Of more Importance 10 business
rtan tariff reform. free trade or currency
reform. or even reciprocity with 'anada.
n is a business question, and We business
men Of the United States should Insist ON
ipternatiousI agreements making for peace.
We are indeed fortunate 10 have Al tne
head of our government man VINO win
out giving WAY 10 false ana dangerous sen
fiment or ignoring existing conditions con
tinuing the policy Of his predecessor lS
cOura geously leading IN this world move
ment. We should make II our business.
0s II Is our duty. 10 back up fTeSIp'h'
Ten.
A criticism Of his government for not
having prevented the activities of Amer
ican sympa thizers with the Mexican IN
surrectiOns along the border. made 10y
Congressman James r Slayden i'm the
course Of an address drew reply from
Assistant Secretary Wilson Of the state
Department who said that IN all reNoIu-
tons i'm the Lstin-American states
Americans had been active, i'm spite ui
the efforts OF the fedora government 10
prevent such activities. and that the rec