The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-09-09
MORATORIUM or NOT?
4 Correspondent Thinks England Acts
Wisely while We Founder Around.

but your leading editorial of Sunday does
not seem. in my opinion, to strike the
true course for n constructive movement
Tor the country. In this article YOU
admit, OF course. that 1t was prudent
common sense that prompted an embargo
on export Of gold in tho beginning of
August. and while you are n little hazy
In what IL the proper course to pursue
you object to the idea of moratorium
Tor this country. You state that In rs
refusal TO make effective such declara-
ton the country has not confessed at
least temporary bankruptcy but Il does
not necessarily follow that we have tenn
porary bankruptcy by declaring a mora
torium. IL we have IT we had better
adopt measures OF rehabilitation
Now 1t seems to me that we should not
deceive ourselves by terms and words, but
meet the actualities as they are and en-
deavor TO work out a constructive plan
to rehabilitatc promptly our financial con-
ditions and general business A mere
blind refusal to recognize actual condi-
uons ana pushing them aside lightly with
the self-assurance that somehow they
VIII work out all right is not meeting the
situation as II should be met The financ-
Ing OF the city OF New York for the time
being. commcndablc as ii is on the part
OF the bankers. is mere fash In the pan
10 meet the situation promptly. effectively
ana securely We must do two things
TWO obvious things. which England in her
larger wisdom did to take care of the
situation, that Is, the enforcement Of the
maturing obligations up to the early part
or August must be checked and held In
ab"yance temporarily. and when that Is
zone "A plan must be made to extend credit
freely In order that domestic and foreign
business may be promptly developed
England Immediately seized the oppor-
tunity In that way, and we have done
practically nothing II may be said that
we are In a different condition from Eng
land. II Is true that we are not at war
with any country. hut financially and COM
mercially we are on the same basis and
connected In the same way with trade
and finance az England Is. II It Is proper
TO put an embargo on export gold, or.
IN other words. 10 refuse to meet our
European obligations In gold which YOU
ADMIT II proper course to pursue, n Is
also proper TO hold in check not only the
creditor class In Europe hut the creditor
class in this country as well FOR the time
being; at the same time credit should he
extended freely. which will start the re-
ViNal OF business more promptly than any
thing else that has been suggested or
that has been done.
The Administration is entitled to credit
for what II has done and IL no doubt
doing all that II can. but AS a whole this
country during the last month has accom-.
plished nothing. There has been too
much hesitation and halting and too much
or an inclination to meet the situation
with half baked measures. The slight i'm
provement which Is pointed TO has been
wholly due TO the prompt and effective
measures taken by England. which re-
Taxed the London discount market and
thereby benefited US. The Admlnistra-
ton has seen NJ 90 issue currency on APP
proved cotton warehouse receipts This
IL. OF course. a recognition of our adverse
conditions The cotton industry is seek
Ing 10 do for itself what should he done
for the whole country, but under one safe,
comprehensive and constructive plan.
Wa all know that the cardinal doc
trne of England's policy is to extend
credit freely in times OF trouble o. panic.
That presupposes. ~ course. always the
holding in allegiance OF the enforcement
forthwith of maturing obligations. Eng
land adopted such a course month ago
ana IL gradually improving her conditions
This country II laundering around with
its half baked plans and dcceivlng Itself
with IT. own sef-assuranre II Il is a
proper thing 20 hold in allegiance the set
tlement OF our obligations In Europe. 1t Is
certainly proper that we prevent the small
creditor class from forthwith enforcing
maturing obligations up to early August
In this country.
Those OF that class who are prompted
by predatory instincts should be- checked
I'm such "A course. II II is a good thing 20
hold In allegiance the enforcement OF the
Europeans obligations for the time being,
Il is an equally good thing to prevent the
enforcement OF the obligations Of the
creditor class in this country against the
debtor class
suppose in the last few weeks n
$1,000, GOO mortgage matured on property
worth fourfold tho amount OF the mort
gage that the holder of the mortgage re-
fused TO extend II and prompted with a
desire 10 coniiscate the property ne enforces
the mortgage and takes the property.
the mortgage and the holder OF II knows
II. whereas II the matter were held In
allegiance under some form OF morato-
rum conditions later would develop which
would enable him to take care of Il, The
fear OF such enforcement hurts business
and industry.
Every commercial country in the world
to-day except ours has, some form OF n
moratorium. some eighteen different coun-
tries having declared II. They have done
so for the same purpose that should
prompt US 10 do II. and that Is. to re-
hab!litatc the finances gSnd business OF
their respective countries. II we were will
ing to check tho European from collecting
his debt hut permit a predatory creditor
class In this country to run riot and
oonhscato the property OF debtors In n
time like this. II will have n had effect on
starting mp prosperity In this country.
by doing the obvious and sensible thing
we can be instrumental in speeding the
most prosperous era this country has ever
seen We have. indeed. in England a good
example Of what can be done and way
to do Il.
First. England meets the situation ny
ing obligations by form Of moratorium:
second, at the same time she extends
credit freely TO the business and industry
OF the country. In the time oc the
Franco Prusslan war she was in the IA me
position we are to-day In the present war,
At that time she pursued practically the
same method az suggested In this COM
munication. The wonderful prosperity
and development of wealth In England
that followed the Franco Prussan war IS
striking example Of what we can do at
this time by pursuing sensible and con-
structive methods. From 1870 to 1874
the national income In England jumped
1900. 600, 900! England Mt tho close of
the Franco Prussian war had to furnish
all the raw material, the manufactured
and some OF the agricultural supplies for
Europe In this war we shall have to do
the same thing that England did In the