Evening star., 1914-07-31
WAR MAY BUILD UP
US. SHIP NEG|STRY
Continued from First Page.o

be taken out of commerce and forced
into the auxiliary service Of the biz
navies that will be involved in the con.
f1ict.
Congress Will Act.
The general feeling is that If Germany
and Great Britain become involved and
their merchant ships are withdrawn
from transoceanic trade. Congress viii
remove the five-year limitation In the
Panama canal act and make it possible
to admit to American registry foreign
built ships Of whatever age.
A bill to remove this limitation has al
ready been introduced and is in the COM
mittee on merchant marine. CHAIRMAN
Alexander of that committee is prepared
| to press the bill. Enactment OF a law OF
this kind would make it easy for british
| and German ship lines to reorganize as
American companies and place their YES
| sells under the American flag.
Senator Burton is said to be prepared to
press the matter in the Senate II IS De
lieved by both Senator Burton and Repre-
sentative Alexander that while part OF
this acquisition to the American merchant
marine might be only temporary. large
| part of it would become permanent and
give the United States real start to-
ward upbuilding it's representation on the
seas.
! Members of Congress who have studied
the matter do not believe that the North
| German Lloyd and the Hamburg-Amer-
| lean lines would come in to American
registry because of the financial inter
ests in them by the German royal fam
| lily. They believe that the Lusitania and
| the Mauretania would also be barred be
cause they were constructed by the FUNDS
| of the British government; and the
Cunard Company is repaying this by
carrying mails
Came Up in Grants Time.
| One of President Grants messages to
Congress. written under war conditions
| in Europe somewhat similar to those now
existing. is recalled by officials of the
bureau of navigation. At that time, in
1870, Germany and France were on the
| eve of war and President Grant took
the position that the commercial vessels
Of the United States were not adequate
to meet the demands European war
would impose upon the commerce Of the
United States. The message. dated July
10, 1870, said in part:
The latest intelligence from Europe
indicates the imminence of war be
| tween France and north Germany. IN
view of this a sound policy indicates the
Importance of some legislation tending
to enlarge the commercial marine OF this
country. The vessels of this country al
the present time are insufficient to meet
the demand which the existence OF a
war in Europe will impose upon the
commerce Of the United States, and !
submit to the consideration OF congress
that the interests of the country VIII pc
advanced by the opportunity anorded
to our citizens to purchase vessels or
foreign construction for the foreign trade
of the country. An act to this effect
NAV be limited in its duration to meet
the immediate exigency.
Of further postponing the time OF ad-
journment, with the view OF consider
ing the questions herein communicated
(signed) ~. s. GRANT"
Treasury to Furnish Gold.
President Wilson set the machinery
Of the United States Treasury in mo-
tion today to aid in establishing the
financial situation at home. He ex-
pressed approval of the closing of stock
exchanges as a precautionary measure,
and after an early morning conference
with Secretary McAdoo an official
statement was issued announcing that
the Treasury would aid the banks in
all localities SO far as it could legiti-
mately.
currency awaiting issue at the call of
| the banks the Treasury has funds to
deposit in financial centers which may
| need help.
Immediate steps are to be. taken to
complete the organization of the new
| federal reserve system and let 1t be-
| gin operations 1t provides means of
| governing foreign gold movements.
| Treasury officials consider that it
would be against public policy to make
known details of such shipments. They
emphasize the preparedness of the
United States for taking care without
| inconvenience to itself. of almost any
demand which. even in event of war.
| Europe reasonably might be expected
| to make on the gold supply of this
| country.
| II was declared the United States
| now has more gold than almost any
buying heavily from food and manu-
featuring markets here on account of
reduction in working forces at home
| 1t is almost inconceivable that the
| situation could arise where America
would be drained of gold to an injuri-
Gus extent.
| McAdoo in Touch.
| Secretary McAdoo said:
I'VE are keeping in close touch. with
/! the situation. The Treasury Depart
ment will help as far as it legiti-
mately may in New York or In any
other part of the country where it be-
! comes aprsr rent that assistance is
needed.
THE Aldrich-Vreeland act. as amend
| ed by the federal reserve act, Is still
in force, and the terms upon which cur
rency may be issued under that act
are now so favorable that resort may
be made quickly and effectively to 1t to
meet any emergency. 1t must be re-
printed and ready for issue $500. 200. 900
of currency. which the banks can get
| upon application under that law. This
| Treasury.
I'm view of the closing Of the foreign
stock exchanges, the action Of the New