The Washington herald., 1914-06-18
BANK President
DISCUSSES PEACE
J. Selwin TAFT Says Niagara
Conference Sets Good Ex-
ample to World.
EFFECT ON EUROPEANS
Action of President Means More Than
Settlement Of Mexican Question.
C T,-l>., W~r
EFFECT ON EUROPEANS

J. selwin TAFT, president Of the wash
ington and Southern Bank and well
known international banker. yesterday
pointed out the Importance of the peace
negotiations being carried on in Mag
ara, especially with reference to Eu-
ropean conditions. Even failure, he
stated, would carry it's example and
lead the great European countries TO
use their good ofiices to prevent war
between Turkey and Greece
IF President Wilson and Secretary
Bryan are successful in securing Tor
Mexico, without bloodshed. a govern
ment which will give to the world
reasonable assurance OF prolonged
peace in that war-vexed country. IL VIII
not only have an instant and salutary
effect on the markets Of the world, but
IL will provide a precedent which will
encourage Europe by force of example
to take steps to prevent reopentng
of the Balkan war trouble" said Mr..
TAFT.
TT will demonstrate the practical
eficiency of mediation and in this way
the President will bring about, IL sue
cessful, a return of business activity
to an extent which 1t Is safe to say very
few believe to be possible at the pres
ent time and only those who are study
ing fOrelRn COnultlOHS NSEy NAOsNAS
and who recognize how dependent the
worlds markets are on peace
FOREIGN Markets Affected.
To-day Turkey and Greece are on the
verge Of war, q condition endangerins
the whole of Europe and already serious
.ly affecting its money markets as well
as sympathetically disturbing our own.
II our efforts with reference to Mexico
meet with success, is it supposable that
in face of such patience, restraint ana
infiexibility of purpose exhibited In
dealing with Mexico that the great
mowers of Europe would for a moment
permit Turkey and Greece to reopen
the Balkan war? j. for one, hold IL
10 be impossible. The spark of humani-
tarianism lit in this country. II sue
cessful, will fire all Europe in the In
terests of peace with such an illumi-
mating example. war for the most part
will be impossible, seeing that no or
dinary conditions could be REASONABLY
considered as outside the pale OF medi-
alton.
From a banking point Of view. the
natural outcome Of the policy pursued
by the United States would be an enor-
nous relief, not only because OF the over
vhelming destruction Of values In actuai
war and the long depression following
unon H. but because of the drain upon
the worlds resources in preparing for II
and the paralysis to international and
domestic commerce caused from the rear
of It.
even should our efforts fail from a
moral point of view the valuable lesson
of our long-continued efforts on behalf
Of a peaceful settlement Of the Mexican
trouble will not have been in vain. These
efforts have been made in full view OF tho
entire world which has had ample time
TO digest them and good results must
sooner or later follow, whether the seed
thus sown springs up at once or after
a long and needless war.
Position of United States.
From q business point of view dec
laration of war would upset our market
for the time being. This condition. how
ever, would probably be quickly followed
by a period Of business activity which
would sympathetically and favorable af-
feet all lines of business. This, later on.
when we came to pay the cost OF the war
would be followed by prolonged depres-
sion.
There are, Of course. other ,considera-
tions, such as the enmity and hl-will
which would be sure to follow such an
event and which, as 1t Is to our inter-
est to live In peace with our neiehoors,
we would all deplore-
To-day, we have in our hands practi-
cally all the elements for establishing
our financial supremacy among the ma
tions of the world. We have settled
country removed by its locality from the
dangers of foreign entangiements to
which European nations are exposed. and
ve are now known as strongly fayorins
a policy of mediation in disputes with our
neirhbors, and as being absolutely with
out a grain Of covetousness toward their
territory, however inviting. These condi-
tons, now perfectly well established in
the United States, make It an exceeding,
lv femptinr dsld for European capita