The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-14

slackening OF the tension In the foreign
exchange market and Europes Increasing
need for our products, sufficient bottoms
can be obtained to provide for the trans
purt.tion of our grain and cotton to
England and the Continent
Mr. Schir in his Chamber OF Com
merce speech said he believed that q
large amount OF the gold held by the
trust companies as reserves could be re-
leased to meet the situation.
lie said the question the people OF this
country were asking themselves IL, How
can we pay our debts. particularly how
can we pay our foreign debts?' He
called attention to the measures adopted
by banks to conserve their resources by
refusing to pay out large amounts. their
substituting credit system. the ssu-
ance OF Clearing House certificates and
the taking out OF emergency currency.
He paid special tribute to certain head Z
OF financial institutions who had worked
tirelessly To establish a system for the
exchange OF credits and to smooth out
the situation.
Mr. Schlff then called attention to cor.
porate and municipal Indebtedness Of
this country coming due abroad shortly
and which must he paid In pounds stcr-
ling. francs and marks. He questioned as
to whether we should allow this indsbt-
ednoss 10 remain unpaid and said that
the moratora did not cover these obl-
cations He said that we were not re-
sponsihle for thl. condition abroad and
that there were some who believed those
who were should suffer from H. but that
he disagreed with those who took that
stand and felt that we must pay our
debts under any conditions.
Nov we can paw this lndeb.o dnsss
only II the banks. for certain purp ses
which should he carefully scrutlnized by
h.. IA, x..tn tn, - f<
went on. The banks answer us. Yes.
We are not unwilling to let out gold. but
this gold Is in our reseves and II We
let II out we will have either to reduce
or depletc our reserves. which we must
not do That Is correct. too. But what
have We emergency currency for There
IL now authority. there is authorization.
TO create many hundred millions OF emer-
gency currency. national bank notes. to-
day. because all emergency currency
stands on a par with every other national
bank note outstanding.
No Dearth of Gold.
We have no dearth OF gold in this
country. We have more gold In this
country than, believe. any other cour-
try In the world has something like
ifteen hundred million dollars probably.
We have thousand millions OF Treasury
the Treasury holds the gold. these GER
tihcates being to large extent In the
banks. Wa are not short Of gold. tell
YOU Whist we are short Of: we are short
~ money 20 pay our debts We wave
the American nag and say we are willinr
to help the entire world. ard are pre-
pared to do it--and We haven't got
enough money to pay our own debts
"What does an honest man do II he
cannot pay his debts He tries to Dor
row il. he makes his note for IL Well
that is just what We should do. As we
cannot borrow that money in Europe
or anywhere now we must borrow Il
from our own people, who are willing 20
I loan II to us by means Of emergency
currency. the redemption OF which tbs
Law protects and we must pay our debt,
/ II We can do IL this way.
See what England. which Is in th'
mids; of terrific war, Is doing to main
tain It's commercial and financial su
premacy; see the practical emergency
measures II has evolved already SCI
how its own Government has come 4
the rescue only yesterday to reestablisl
u discount market by Offering to guar
antee all bills created before this war
so that the Bank OF England can dis
count them. and to relieve the joint stool
; banks in order TO take new discounts.
sim Paying In Germany.
"Iu Germany, which liz not as rich a
England and which is perhaps for tn
/ moment more crowded than any othe
nation engaged In this terrible conflict n
. moratorium has even been established yet
They are going on and paying thei
debts as IL nothing had happened. An
We want TO stand back and say We ar
not going. for the time being. to enabl
those who owe money In Europe for lie
| gltmate debts created before this wa,
debts the payment Of which cannot b
postponed through lawful means q mes
through existing moratoria); we mea
10 say to the Comptroller OF the CIT
of New York. who sits here. We wi
not furnish you the means 10 max
good the credit OF our city
DO we dare TO do II? Do We dar
10 tack this stigma upon generation
yet unborn? Should we not rather x
to the last resort TO pay?
And, gentlemen, payment will not h
so difficult. II you do not want to pa,
the more urgently YOU will be aske
70 pay II you are willing to pay. yo
will not be crowded for payment Pc.
sIbly. and not unlikely, Congress wi
deny US the legislation 10 enable III
banks to let out the gold. II that \
TO- we'll we must bow to the law. an
Congress has forced this moratorium
But we, one way. dare not do II. Tt
old proverb that honesty il the best polio