The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1914-08-04
OUR LINES OF DEFENSE.

The military interest Of this coun-
try in the European situation is, for
the time being at least, practically
nil. Not Il single complication is in
sight by which we might be drawn
into the conflict. Our commercial in
terest in it is vast, but the effect of
war upon our trade, not only with
the belligercnt nations, but with
whatsoever of nations may succeed
in remaining neutral, is still prob
lematical, and the full result will be
slow of development. But our none
tary interest is immediate. Not at all
a secondary phase Of. the conflict is
the struggle for gold; and in this
part of it we are today engaged as
vitality as is France, or Germany, or
Russia, or England. In sense they
are all leagued against us to get our
supply. The issue for us is the main
tenance at parity or the depreciation
of our currency and our Govern
mept's credit.
In this part of the conflict the
bankers become the general staff.
The Government must practically
place its agencies in their hands. The
most important official in the United
States today, aside from the Presi-
dent, is the Secretary of the Treas
ury, and until the Federal Reserve
Board has been organized the Van
derlips, Morgans, and Bakers con-
stitute, by virtue Of their experience,
the board of strategy. It is at such
a time as this that we can best ap-
preciate the strength of these men,
and fortunately, in a time like this,
we can count on their services and
on their disinterestedness and whole
hearted patriotism.
The proclamation by France of a
moratorium postponing all payments
until August 81, of moratorium for
a month by England, and the sus-
pension of specie payments which
will probably be announced in Eng
land, seem to point out our proper
line of defense. It is the formal post
ponement Of settlement of our Eu-
ropean or perhaps ali our foreign OBJ
legations.
The balance still lies heavily
against us. If European securities
can he sold here and gold obtained
as gold would be exacted--in return,
the balance will be kept against us
as long IS we have gold or until
prices have shrunk to such a point
that even to get our gold European
investors will not sell.
So far as the operation of the
Vreeland act is concerned, the liberia
ton of $500 100000 of paper cur
rency here would, of course, relieve
the situation as it exists today. But
today we still have sufficient gold to
give even an additional 100000, 900
of paper actual monetary worth. If
the gold is allowed to depart, the
lew issue becomes just so much more
Of what would be simply fiat money.
There is at the present time no
need of the suspension of specie pay
mcnts here. Perhaps under any cir
there will be no danger
of it. The danger certainly cannot
arise if we prevent further depletion
of our gold supply. But the case is
one in which the ounce of prevention
is worth not only a pound, but many
pounds, of cure; and # the bankers
feel the step Of placing a complete
on the expectation of the
precious metal to be advisable, the
Government should accept their view.
A proclamation to that effect would
seem to De fitting accompaniment
to the proelamGtions of neutrality
which shall declare to the world our
determination 70 play our own game,
anG ours only.