The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1915-05-27
MONEY MIXUP IF
AMERICA FIGHTS
Two Billions Owned by Aliens
Here and In Germany.
SITUATION is COMPLICATED

Away and Land Where They Could.
Washington.-The precise legal sta
tus of many hundreds of millions, per
haps of billions, of property In this
country and others would be brought
into question IL the United States were
to become involved In the war in Eu-
rope.
Vast properties in the United States
OF European ownership would be liable
to co~nfiscation.
Great properties, though much less
in aggregate value, owned by Ameri-
cans I'm Europe would be in the same
position.
American corporations would not be
permitted, 1t is assumed, to pay divi-
dends On securities held by citizens OF
the countries with which the United
States was at war.
The German ships now informed In
this country would be under the neces-
sity OF leaving American waters at the
risk of being captured on the high seas
OF else Dtluk COHlSCAltd III inG pulls
where they are now held.
In all the history of warfare there
has probably never been so complicat-
ed a financial situation In internation-
al relationship as that which would ell
sue between the United States and
Germany If the two countries by any
chance should engage In hostilities.
Germans have long been large invest
ors In the United States. particularly
In securities of railroad and industrial
corporations. 1t is now pretty well
known that these investments were TO
a considerable degree l~iquidated In the
last year before the war began. Dur
ing that period Germany was systemat-
ically turning its investments into
forms most available for quick use,
and the conversion was made so skill
fully and quietly that the world OF
afoot until the war had actually bro
ken u
Consequently 1t is impossible at all
accurately to appraise German hold
ings In this country today. 1t is be
lieved, however. that they are largest
In railroad securities, then In industri-
ais and finally In real estate and mis-
%cellaneous forms of property.
On the other hand, American proper
ty interests In Germany are larger than
Ia generally understood, because In re-
cent years a number OF American in
dustrials have been forced to establish
plants I'm Germany.
1t was estimated that $2,000,O00,O 900
worth OF various alien owned invest
ments In both countries would be in
volved IL the two countries should go
to war. What would be their stand
ing?
This question Is decidedly important
to people on both sides who have such
holdings. But 1t Is easier answered
than the next one.
With the two countries at war un-
naturalized Germans In this country
would become, before the law, "alien
enemies" No matter how loyal to this
conduct toward and In their adopted
country should be exemplary, that
would be their legal position.
This class OF people own great ag
gregates OF property In this country
and to involve them In any genera
conhagration measures would be 81
farreaching In their effects that Ii Ii
recognized as quite impossible that any
such would be undertaken.
The declaration of war between two
countries has the effect, under long es
tablished international practice, OF sus
pending, but not wiping out, debts OF
a state or It's citizens to the citizens OF
another state.
The reasons are manifest. In the
first place, to pay debts to a foreign
state during war would be to furnish
the sinews of war to the enemy. III
the second place, IL the debtor declined
to pay, there would be no chance t
enforce collection, because the debtor
an enemy alien, would nave no acces.
to the country's courts to enforce pay
ment.
The forty-eight German vessels In
termed I'm this country, appraised al
worth nearly $2OO,OOO,OO0, are In a pc
culiar status. Interned here because
the United States Is a mutual friend
they would suddenly be found to b.
In the complete power Of a new enemy
1t is explained that the peculiar OBJ
legation which the United States ha'
assumed toward them raises question:
I not before Observation-Disclosures 1t woult
be violating a very special and unusua
| faith to appropriate the ships now 1
this country and Germany were at war
) The procedure which the authorize
, believe correct would be to notify tn
: vessels that they must leave American
territorial waters and to give them
! fair chance to do SO. After that the,
would be liable to seizure by American
) war vessels or by the vessels OF Ameri
! cas- allies.
Or. II the Germans preferred, the.
1 could decline to leave. the Unitet
| States government could take posses
sion of and formally confiscate the YES
co1c and laf tho whole huSfnnSa no nAf