The Washington herald., 1914-09-06
DE AGUERO ASKS
GOVERNMENT AID
Would Have the Treasury Is
sue Five Billions in
Notes.
SECURITIES THEN SAFE
FInaneier Believes National Credit
Should Stand Behind American
Stocks Held by Foreigners,

NJ. z. de Aguero, the president OF lh'
New York Consolidated Stock Exchange
in a letter sent, here, suggests a plan To-
the issue by the United States govern
ment of Treasury notes to absorb the
European LIQUIDATION of American State
municipal and railway dividend and in
terest-paying stocks and bonds, amount
not to exceed IS, 0O0, 00O.O0O 1t is suggested
10 end the present congestion in the
security markets and to take care of the
European liquidation.
The letter sent out by Mr.. de Aguero
follows:
This country faces situation that is
without precedent; a situation that is
fraught with danger, and, if not properly
handled, will inevitably result in a a.
nsnciaI cataclysm. European owners hold
volume of American State, municipal,
and railway securities, variously esti-
mated at from three to six billion dol
lars. Liquidation Of these securities is
today insistent, and a prolongation of the
war will result in every increased urgency,
as Europe will need the money to buy
the actual necessities OF life.
Fenr Caused Closing.
The fear of this liquidation has closed
every stock exchange in this country,
with the result that an Legitimate mar
ket has been growing in the street I'M
fettered by any of the rules and reguIa-
tons which should safeguard dealings in
securities
Unusual situations require unusual
procedure. Do we, as the greatest nation
on earth, believe in our own greatness?
II so, LET us as a nation take up the
burden Of that greatness. While other
nations are issuing almost unlimited
amounts of currency to purchase mu-
nitIOns Of war, let us temporarily issue
currency to conserve the interests and
welfare of all our People, and to grasp
and hold that prosperity to which we.
As the only great nation at peace, are
entitled.
i am aware that the accompanying
plan is a stupendous. almost a stagger-
ing, proposition. but great nations as well
as great men must measure up to the
occasion and conquer, instead of being
conquered by, fate.
Permit me to urge immediate action,
as every days delay adds to the danger.
A financial panic here would put this
country back a generation, and throw
the whole business world into chaos The
emergency exists. let the Congress pass
an emergency measure, and above all
things act, act at once
The plan follows: Let the Congress
Immediately pass an emergency act au-
thOTizing the Secretary of the Treasury
10 issue treasury notes not to exceed
q. 'R', 'DN,NuN TO acquire at the DeSI possible
prices all the American State, municipal
and railway dividend or interest-paying
stocks and bonds now held by foreign
holders Who desire to sell; said Treasury
notes to he fun legal tender. including
payment of customs dues. Thus this
stupendous volume Of securities now A
menace to our markets would be no
longer a menace, being forever with
drawn from the market The stock ex-
change could oPen the day after this
all avenues of trade would hum with
activity.
Foreigners Would Sell.
The desire Of the Europeans to Iiqui-
date IS simply a desire TO obtain for
their investments a medium of exchange,
something that can be turned into bread,
other food products and manufactures.
1t does not call necessarily for gold. As
we are the only sellers of food products.
small, if any, shipments of gold would
be necessary. Having liquidated their
securities, they would be in position TO
buy. and would be compelled to buy our
food products and manufactures.
Establish a sinking fund with the
proceeds Of the interest and dividends
received on the securities bought retir- |
ing annually an amount of the said issue !
of Treasury notes equivalent TO the total !
annual receipts from this source Figur- |
ing on basis Of per cent income. in /
twenty years the whole of said issue of |
Treasury notes would be retired, and. |
therefore, the income approximating on |
a S5.OO0,00O00O issue SgjnOOO.OOO annually. |
could be applied to the general uses of !