The Richmond Virginian. (Richmond, Va.) 1910-1920, 1914-09-05
FINANCIAL WRITER INSISTS PRES
EMIT WAR II oNU OF TRADE
yrALoUsrEs.
CHANCE TO KILL RIVAL
NEW YORK. HE BELIEVES. Is LIKE
Ky TO GAIN AS GER
MAN BANKING
CENTER.

foremost nnanciers Of New York city.
who, acts as the American repaesdn-
tative Of some of the most important
fers not to have his name mentioned
for the present:
1.-THE ultimate desire of England
TO drive Germany from the ranks Of
the nations, that compete for the
worlds predominance at sea. and
therefore In commerce and Industry.
IL clearly shown In the proclamation
Of the British government to its banks
and banking institutions. putting the
great ban on German commerce.
THE English government prohibits
banking dealings with firms having
German partners.
Until further particulars of this
prohibition have been received, 1t can
not be determined whether It applies
only to firms having connections IN
Germany. or to all firms outside OF
Germany which are considered under
the ban because OF their having even
4 single partner Of German citizenship
In their organization.
New York rs 4 Center.
THE natural recourse of such nrms
will be 10 make New York instead
q London the point of financial clear
s.fasS -
As will permit under the new federa1
reserve bank law. drawing large bllis
OF exchange In dollars instead OF
pounds sterling and acceptances or
their bills from national banks or
ganixed under the new law OF the
United States now about to be es-
fab,ished with special provisions 70
facilitate the foreign trade IN TINS
country.
au4a tiuN a =
~ have only one partner OF German
nationality are included in the ban
OF the Engl.>i1 government. Accord
ing TO private cable received by one
Of New York's most Influential finar-
cial men. who represents interests that
lie chiefly on the other side OF the
ocean. the proclamation was published
in the London Times. Only on &C
count OF the delay IN mail transpor-
tatlon is the latest move OF the Eng
fssh government not generally known
In America.
II do not wish to be quoted in the
matter" the banker said. ''but I am
only too glad to convey to the Ameri-
can public a real picture Of the SIT
nation that cannot fall to arouse,
even In those who are inclined to
Justify the British attitude in the
present war. sympathy for the Ger
1nans-especialiy for those who are
responsible for the eminent positie<
last I'VE years among the CONNER
cfal nations of the world. the
pioneers OF German industry and COM
merce at the outposts OF civi,iza-
ton.
Competition OF Germany.
-..fsrriaat. proud az its naral rnwers-
conscious OF its might. against which
no one could compete. learned In the
course OF yeats that 1t had To regard
Germany as competitor. II did NOT
abstain from every known diplomatic
dodge ana trick to Guido its enemy.
to damage its prestige.
I'm vain. Slowly but surely the
German nation made Its progress. es-
tahlfshed itself In the worlds mar
ket
And now It has come to the issue
ANY old cause was good enough
for England TO 60 to war against It's
sworn enemy But England r. not
satisfied with having its warships in
arms against German warships II -
not satisfied to send its armies in
coalition with those Of It's confederate
agains. German soldiers. It's desire
Il to cripple and wreck Germany a.
a sea power. az a military factor, ana
In its most vital relatious--its eco
nomic activities In the world, which
naturally must reflect on the people
nj home.
The declaration of the moratorium
and its far-reaching consequences for
fi~rmAry- were not generally under
stood In this country. The English
moratorium was extended until Octo-
her 4. That means that all banks
suspended their collection business
until that date. Only one who un-
derstnnds how CLOSELY German COM
MERGE Especially In the oversee coun-
tries. Is connected with banking in
situations In England can realize the
gravity 90 such a measure taken by
70 English government. To explain
this means to reveal the history OF
the establishment and success OF Ger
man commerce In foreign countries.
German Trade Expansion.
"At first there were ships built by
fhe Germans that went out to far
eeaports to reconnoiter. to learn con-
ditions and II favorable to establish
business connections. AS soon as they
were established. invariably the OPEN
Ing OF German bank followed. The
German bank in the foreign country
offered the merchants great possibiN-
ties. They could buy the raw ma
terial OF this country and pay while
the goods were being shipped to their
destination in bills OF acceptance. Eng
land, the great center OF manufacture
and Industry was the natural ship
ping place for this raw material. where
they could dispose OF II easily and to
good advantage. German interests,
representing this commercial develop
ment. realized this and opened three
banks In London as kind of clear
Ing house on which the hanks in the
far seaports could draw: Die Deutsche
hank. Die Disconto Gasellschaft ana
Die Dresdener bank The bills Of ac-
ceptance were payable ninety DAYS
after date. Before they expired. the
goods purchased In this manner had
arrived. had been distributed and
made use o. to manufacturers and
merchants and the notes taken up.
After the declaration IT the mora
torium and the war on Germany these
banks were closed by the English gov
6rnment and only the transaction OF
the liquidation business continued
under the SUPERVISION Of the eminent
accountants for the English crown. All
cash items received are collected ana
the proceeds deposited in the Bank
Of England. But checks and drafts
Drawn against such cash remittances
are being declined to be honored 'as
hu nrNmw 80 t1,o Tr Uyiah 0ovarN ~ aynf