New Britain herald., 1915-08-24

Tn reply to an inquiry directed to tho Imperial Chancellor under the date of April 26 of this year as to which countries have placed an em- bargo on shipments of arms the fol- 1 lowing answer has been received:
 February 21, Bulgaria.
 August 6, Denmark.
 October 16, Greece. August 1, Italy.
 January 26, Norway. August 13, Switzerland. August 1, Sweden; transit October 1 and January 9.
 August (?\ Netherlands. November 25, Rumania; transist in- cluded.
 Nevertheless I believe that we should now keep out of everything until our note goes in. The Imperial Ambassad dor.
 (Signed) J. Bernstorf.
 To Capt. Boy-Ed, New York.
 con reverse side of sheet)
 In the answer of Wilson of April 21, 1915, regarding shipments of arms the following is found as principal argument against an embargo on shipment of arms.
 ''The placing of an embargo on the trade in arms at the present time would constitute such a change and be a direct violation of the neutrality of the United States.' An unidentified writer has devoted eighteen typewriter pages to an answer to a pamphlet written by E. F. Davis, manager of the London Coun- ty and Westminster, Bank of London and chairman of a committee of Eng fish and foreign bankers on exchange problems. This pamphlet attacked the financial and credit system put into effect by the Germans since the outbreak of the European war began and is entitled British and German Finance.
 German Financing Defended.
 The writer takes exception to state ments made by MT. Davis that Ger man financial houses were forced by government to invest in war bonds and that war loans were subscribed to by "persecuted bankers' He points out that the bonds amounted to B. 36O,OOO,OOO marks, whereas the issue referred to was limited to 100000 900 marks. Then the writer says:
 The best answer to MT. Davis as- sertion that subscriptions were forced through persecution" of large insti- tutions is contained in the following figures:
 There was total of 1,177,335 sub scripticns.
 Among them were the following:
 23l,1O4 subscriptions for amounts of lOO-2OO marks ($25-$5O)
 241,S04 subscriptions for amounts of 300,500 marks ($75-$125.)
 453,143 subscriptions for amounts of 6OO2,O00 marks ($15O-$5OO.
 A total of 926,051 subscriptions fo: amounts below 2,O0O marks out of 1,117,235 subscriptions Only 21O subscriptions of above 100000 marks ($250,0o0) were received.
 Denies Davis Statement.
 The writer of this secret document further denies Mr. Davis's statement that the Darlehnskassen (the new loan banks established by Germany to relieve the Reichsbank) aid in frenzied finance and pawning opera tions. He says that the Darlehnskas- sen, which were operated first in 184S and succeeding German wars. have been proved highly successful, and that the Darlehnskassen notes are triply secured; namely, by the guarantee of the German government, by collateral and by the unlimited liability of the debtor.
 The secret document also says:
 The Darlehnskassen measure will rank, to the imperial financial ob- server, with the very, best emergency measures that have ever been adopt ed during times of stress by any of the leading nations. The emergency currency issued by the national banks of the United States at the beginning of the war were not a bet ter circulating medium and certainly the kriegsdarleh ehnskassenscheine" are fully as creditable emergency notes, considering the triple guaran- tee, as previously stated as the emer- gency notes issued by Great Britain under the bank notes act of 1914. Americas Part in Finance. The document then goes into the moratoria declared by the British government after the war started and says:
 MT. Davis should remember that English bankers caused sterling ex- change to rise to such a pitch that it would have caused disaster had 1 not the banking business in the | United States been on as stable a | basis as 1t actually was at that time 1 and had not the New York Stocl, Exchange, under the stress of Euro i pean liquidation, closed it's doors in | self-defense.
 Discussing the reasons for the de- cline in the rate sterling, the docu- I ment says:
 The war has brought England painful surprises and the English bankers have had their share The true effects of the new condition upon