The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-03

/ WneU the rest OF tho world mas 50 HluCn
at stake in the maintenance of Ameri-
| can stability. General war In Europe
will in any case cause complete suspen-
/ sion OF payments abroad and EUROPE.
| engaged In war. can do little else with
| gold than hoard IT,
Additional exports OF gold now can he
I Of small help at London or Paris and
| can do great harm TO our own position
/ Tho duty Of the moment is to do moth
| Ing which can impair the power and pros
/ poets Of the United States for holding
/ civilization together. ~ II should appear
/ that the banking community cannot con
! trive and ;lgree on an embargo against
gold exports, the might Of tho Federal
! Government should be invoked to that
end. va have gold enough to furnish
the basis for financing soundly large
| domestic and foreign trade movement,
( but We have no more to throw into the
| abyss of European warfare n we are
! going TO do our duty by humanity. IL
| is idle TO talk or even think Of liquidat-
1 ing processes to-day. Liquidation Is no
| longer to be considered. The obligation
now In 10 keep things going in their Gus
| tomary banking and business lines.
| Matters are already moving in the right
| direction. steps have been taken and
measures Instituted to meet emergencies
a. fast as they have arisen The huge
extent Of the crisis which Europe pre-
|
| catcd until the middle of last week
| but after that cndcavor was promptly d.
rected toward preventing the United states
and other peaceful lands from being
dragged down In the ruin toward Which
| Europe was rushing. The first indis-
| pensahlc measure was the closing or tho
Stock Exchange. which automatically pre-
vented the development or panic conditions
here, and IL is to lie expected that there
! viii be loval assistance to the stock OK
! Changes and the BANKERS In their purpose
! To keep an unofficial market from being
made during the suspension OF regular
| business
| Taking tho leadership which was 10 he
expected nf New York. Wall street bank.
ers proceeded to confer together az to the
| further measures which we're going TO he
| needed At the same time the Govern
ment at Washington adopted an attitude
which invited the cooperation OF the bank
| ing and business community IN projects
| for tho protection OF the United States
| against the European war storm The
enlightened comprehension OF the Admin
| istration and OF Congress- was shown In
tho swift framing OF an amendment liber-
| allzinR the emergency currency act so that
additional currency 10 the extent OF half
| a billion dollars could be readily taken
| out By tho national banks.
| Confidence Inspiring purposes were also
| evinced IN other directions. as In the
determination Of Washington TO accelerate
| the Inauguration Of tho Federal reserve
banking system. which can he OF great
| help IN the near future In the attention
| paid to the possibilities for manufacturing
| rapidly an American merchant marine by
! transferring foreign vessels to American
! registry 80 that our export trade can be
| carried along. and in the meetings OF
bankers, especially conferences with the
| Federal Administration In the meantime
| action by various clearing houses was
testimony To the readiness Of the banking
community 10 meet the changed conditions
I and Their. was further encouragement Ia
the movement to organize foreign exchange
| bankers in Wall Street a movement full
Of promise for the provision Of foreign
| trade facilities and the protection Of the
| Country's gold supply.
Probably tine feature OF tho crisis which
made Il most dlnirult to deal with ~ first
Vas tho swiftn"ss with which II confronted
| finance and business. ~ seemed i'm.
possible to believe that any civilization
could permit SO enormous a crime as a
general European war. Undoubtedly signs
Of 1t had long been visible. Ngeciras and
Agsdir are names Of mournful Significance
to-day. ana presumably tho outbreak OF
war I'm the Balkans In 1912 should have
put tho world on its guard. Moreover
there have been financial signals ever sine
the outbreak OF tho Balkan war that
| Europe was making ready for an imm,-
nont approach tn Armageddon. The In
eviiahility Of such Il catastrophe became
apparent only when 1t was seen last
week that the frightful vreckagc scattered
over the financial and business world
demonstrating the awful validity OF tho
argument for peace. failed to check
Europe's steady march TO war There is
however. no tim. now for blame N may
I've said that II ArnIageddon was all that
the European social order could produce
L N OrlAr fNr
10 make way for a better society. but crit.
icIsm and hlam" aside. II IL the fact OF war
and Its consequences with which for 4,
own safety tue United States has "a
reckon TO-DAY.
Counting tho damage done will do nc
good Neither will II avail TO oalculat.
how long - great war IN Europe can last
We know that the destructiveners OF wal
Will he immense and that Europes pros.
ration after It will he complete Nor car
We compute what further effects will h,
had here, and there is no advantage ir
reckoning them. The two certainties Of
Inc Gay are that the harm already done
Is enough and that the future lies In oul
own hands to secure.
Every encouragement TO confidence 1.
afforded by the way In which the Amer.
lean people and their economic instlt,,
lions have so far withstood tho shock ant
strain. Tho splendid exhibition OF IN,
strength Of American values which wa,
made by Wall Street until II was clear
that opposition must he offered to tn,
pressure OF European Liquidation OF re-
curitles and Europes frenzied demand 70,
gold. was guarantee that this countr,
with q brave and prudent management o.
Its affairs could weather the Europear
storm.
What We have to do now IL to fran,
now policies enforced by a tremendou.
emergency and put them into effect In
order that tho United States may perform
the duty laid upon 1t to save civilization
from collapse The resources OF Tn,
country must he conserved and used to
every end except tho relief of European
desuerat.on. There must be readjustmen
or the banking organization and OF Tn,
processes Of domestic exchange by casl
, or check oo enable business to adapt itsel
10 the circumstances nf adversely. TIL,
now Federal reserve banking machiner,
; should be put into operation as soon n
possible 10 permit a larger employment o
{ tho country'3 resources for our own peo
1 pie and for the peaceful nations whicl
must look to us for goods and credit
| We must begin to acquire merchan
marine by purchase and transfer OF resis
. try We must keep shops. mills factorie
} and stores open and traffic moving alon,
; tho railroads. The whole programme o
Government must DO revised along TN
NINNAs - Nh.