Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-08-26
PLAN Of ENGLAND
T0CRUSH GERMANY
Financial Writer Insists Pres
emit War Is One of Trade
JeaIousies.
SAYS BRITISH GRASPED
CHANCE TO KILL RIVAL
New York, He Believes, Is Likely
to Gain as German Bank.
ing Center.


for the Chamber of German-American
ciers of New York city, who acts as the
American representative of some of the
most important foreign banking institu-
tons. He prefers not to have his name
mentioned for the present:
The ultimate desire of England to drive
Germany from the ranks of the nations
that compete for the worlds predomi-
nance at sea. and therefore in commerce
and industry. is clearly shown in the
proclamation of the British government
to its banks and banking institutions,
putting the great ban on German COM
Inerce.
The English government prohibits
banking dealings with firms having Ger
man partners.
Until further particulars of this pro-
hibition have been received. it cannot be
determined whether it applies only to
firms having connections in Germany, or
to all firms outside of Germany which
are considered under the ban because of
their having even a single partner of
New York as Center.
The natural recourse Of such firms will
he to make New York instead of London
the point of financial clearings and es-
tablish such connections as will permit
under the new federal reserve bank law,
drawing large bills OF exchange in dol
lars instead Of pounds sterling and ac-
ceptances of their bills from national
banks organized under the new law of
the United States now about to be es-
Iablished with special provisions to ia
ciiitate the foreign trade in this country.
Even such business establishments as
have only one partner of German ma
iionality are Included in the ban of the
English government. According to pri-
rate cable received by one of New York S
most influential financial men, who rep
resents interests that lie chiefly on the
other side of the ocean, the proclama-
ton was published in the London Times.
Only on account of the delay in mail
transportation is the latest move of the
English government not generally known
in America.
Il do not wish to be quoted in the mat
ter the banker said, but i am only too
glad to convey to the American public
real picture Of the situation that cannot
fail to arouse. even in those who are in
cI.ned to justify the British attitude in
the present war, sympathy for the Ger
mans-especially for those who are re-
sponsible for the eminent position that
Germany achieved during the last five
years among the commercial nations OF
the world, the pioneers of German IN
dustry and commerce at the outposts OF
civilization.
Competition of Germany.
England. proud of its naval powers,
conscious Of its might. against which no
one could compete. learned in the course
of years hat it had to regard Germany
as competitor. 1t did not abstain from
every known diplomatic dodge and trick
TO outdo it's enemy, to damage its pres
tige.
In vain! Slowly but surely the Ger
man nation made its progress. establish
ed itself in the worlds market.
And now 1t has come to the issue.
ANY old cause was good enough for
England to go to war against its sworn
enemy. But England is not satisfied with
having its warships in arms against Ger
man warships. 1t Is not satisfied to send
its armies in coalition with those of its
confederate against German soldiers. Its
desire is to cripple and wreck Germany
sea power, as military factor, ana
in it's most vital RELATIONSHIPS economic
activities in the world which naturally
must reflect on the people at home.
The declaration of the moratorium and
its far-reaching consequences for Ger
many were not generally understood in
this country The English moratorium
was extended until October 4. That means
that all banks suspended their collection
business until that date Only one who
understands how closely .erman COM
rnerce. especially in the oversee coun-
tries, is connected with banking institu-
tons in England can realize the gravity
OF such a measure taken by the EnBllsh
government. To explain this means to
reveal the history of the establishment
and success of German commerce in for
eiSn countries.
German Trade Expansion.
AT first there were ships built by the
Germans that went out to far seaports
to reconnoiter, to learn conditions and if
favorable to establish business eonnec-
tons. As soon as th<c We're established.
invariably the opening of a German bank
followed. The German bank i'll the for
eign country offered the merchants great
possibilities. They could buy the raw
material of this country and pay while
the goods We're being shipped to their
destination in bills of acceptance. Eng
land. the great center of manufacture
and industry, was the natural shipping
place for this raw material, where they
could dispose of it easily and to good
advantage. German interests, repre-
sentine this commercial development,
realized this and opened three banks in
London a kind of clearing house on
which the banks in the far seaports
could draw: Die Deutsche Bank. Die Dis
, conto Gasellschaft and Die Dresdener
Bank. The bills of acceptance were pay
able ninety days after date. Before they
expired, the goods purchased in this man.
ner had arrived, had been distributed
and made use of to manufacturers and
merchants and the notes taken up. After
the declaration of the moratorium and
the war on Germany these banks Were
closed by the English government and
only the transaction of the liquidation
business continued under the supervision
of the eminent accountants for the Eng
lish crown. All cash items received are
collected and the proceeds deposited In
the Bank of England. But checks and
drafts drawn against such cash remit
tances are being declined to be honored
as by order of the English government.
Without Historic Precedent.
THE English policy can be easily un.
derstood. And the tactics of Great Brit.