The Washington herald., 1914-08-12

A. B. Leach & Co.. OF New York,
through their Washington correspondents.
Lewis johnson & Co. are sending their
clients carefully prepared and detailed
review of the financial conditions pre-
ceding the panic to this date The re-
view, in fact. states: IF strong measures
had not been taken disaster would surely
have followed. However. everything was
set to work. to alleviate many OF the
disadvantages. Some measures were
taken by our own bankers and govern
ment officials; other factors bringing
about better conditions were caused
through the trend OF events abroad. The
outflow Of gold was automatically check
ed, for instance, by the stoppage OF navi-
cation and the declaration OF moratoria
in practically all of the affected coun-
tries. The importance OF this factor
should not be overlooked for II the lanes
OF commerce would have been open and
cash payments would have gone on
abroad, even the closing Of the stock ex-
change could not have prevented a most
frightful exodus OF our gold unless an
embargo had been laid thereon by the
government, which would In effect have
meant the establishment of a paper basis.
We do not propose TO deal with the pos
sible lasting effects OF the European war
on our general commercial. Industrial,
oiN GOHulllOlb- II SctIlS SUN
too early to say anything of a definite
nature. We admit the clouds are black
but here and there is seen a silver lining
A good deal OF unspent money Of tourists
comes back to this country. Home in
dustries which had TO withstand competi-
ton from abroad, will get their hands
free now that foreign production will
be severely handicapped. There will be
a demand for many Of our commodities.
1t will be seen that our financial struc-
ture has not been shaken; Europe will be
unwilling to part with its American Sc
curities at receivership prices, and this
would mean that I prefers to pay this
country for its purchases In gold. OF
course, this war Is going TO destroy many
values, and II is ukely that after II is
over, interest rates will go up. However,
much Of the money now being lost, has
already been taken from the peoples
pockets by taxes and Accommodations of
gold by the banks. Although we do not
deny that the effect may be far-reaching,
this Is all a matter of the future, and
whoever predicts what is going to happen
after the smoke has cleared away, has
found the Stone OF the Wise We con-
TESS, we haven't
Reports from New York are to the ef-
feet that Col. Robert NJ. Thompson, Of
this city. will supply enough money out
Of his personal fortune to meet the IN
covered Indebtedness OF the failed firm of
;. H. P. Pell & Co., Of New York, in
which he is a special partner and its |
argest creditor. There are two reasons
'or Col. Thompson's decision to pay up |
he debts Of the firm One is that he |
himself Is a special partner in the con-
fern, and though the capital Is only |
10000 that fact would have no weight |
With him in his desire TO have all the |
iebts paid. Secondly. s. H. P. Pell, the |
Ienior member Of the firm, is his SON
n-law. The debts Of the frm amount to |
5, 10000 The payment would put It on |
Is feet again.
Col. Thompson Is well known here, and |
Liso has been a prominent figure in Wall |
Street for years. He has been active in /
he cotton market and made money He
vas graduated from the Navel Academy,
erved in the navy. but quit that to study /
aw. Having obtained a degree, in law,
e went into various enterprises, and
ne turned he made money.
lie has promoted many enterprises.
Col Thompson was elected president |
( the New York Athletic Club His
ondness for athletic sports was 20 great
sht he contributed 10000 to help the
american team 30 to eIolympic games