The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1914-08-21
The Chief Opportunity.


Many opportunities which are believed TO be now
the hands of the United States not the less great
because they have been created of sudden have been
spoken of by those who in authority in the world
of trade industry and finance. Some of these are
not yet be grasped, although awaiting early seizure
But there is one opportunity which may be properly
regarded as chief among them all, and there may be
avail made of it Immediately.
That is the opportunity which is in our hands for
the prompt payment of the imperative obligations
which were created in the continent of Europe and
in Great Britain account of the war These obi
cations should be paid in gold its equivalent what
ever the amount of them may be. That the United
States possesses gold m sufficient amounts to enable
our citizens to meet these obligations with enough
to spare for the protection of our own interests is
not to be questioned.
A few traditional examples may make it more
easy fully to realize what the opportunity is AS soon
as the great fire which destroyed much OF the lower
part of New York City nearly eighty years ago was
quenched the officers Of insurance company at
Hartford, Conn, visited the city and caused the
nouncement to be made that their company would pay
without bubble and after proper proof the full amount
named in the policies of insurance which had been
placed on New York property. This was little COM
pany then but its prompt payment of its obligations
American insurance companies and greatly influenced
the development OF Hartford so-caed insurance
city"
At the time of the suspension of specie payments
in 1857 one New York bank announced that it would
meet all its obligations in specie. As result the in
stitution became for a long time of great influence,
and was ranked above the best Of American banks
At the time of the San Francisco earthquake and
fire, when there doubt about the ability of the
banks to mobilize their resources so as to meet their
obligations, all the bank officers nevertheless
nounced that they would promptly pay their obiga-
tions and fortified by aid speedily offered by bankers
in the East they did meet these obligations thereby
making possible ali the sooner to reconstruct San
Francisco and mpart most stimulating influence
that great community.
If now the United States meets in full without
bubble the employment of technicalties to
delay, her immediate obligations, that action will do
more to establish permanently unsurpassed credit
for this country her financial institutions and her
industries than could have been accomplished until
years had passed which were characterized by only
normal international financial and trade relations.
The effect of payment of this kind will be not only
immediate but lasting The instant effect will be the
proclamation of American high credit and this of
itself will serve in some measure to steady, even to
world In addition there will follow as soon as these
immediate obligations met unexampled exports of
American commodities These will be made in such
quantities and viii command such prices as will serve
to return to the United States whatever gold may
have been paid out to quidate immediate obligations
Of course, there must be caution lest the doors be
opened too widely We have right to protect our
securities by making it mpracticable at the present
time to sell any considerable amount of them in Lon
don or in Europe. We may make such contracts re-
speeding the future sales advisable, and will
make them more easily if promptly our pres
ent obligations The aggregate amount, according to
the best estimates, is not abnormal probably $780,
100000 will it. certainly much as SI5ooooooo
and this promptly paid over to those to whom it
is owed who live the sea is not too large
price to pay for the compromising advantages which
will follow prompt payments.