Der Deutsche correspondent. [volume] (Baltimore, Md.) 1841-1918, 1916-11-11
IS ENGLAND's FINANCIAL CRASH


wanted activities OF Mr. Henry r.
Dawson, the partner and closest I
associate Of j. Pierpont Morgan.
Leaving Mr.. Morgan in England, Mr.
Dawson returned to this country on
October 29th, when he Immediately
gave out an interview to the news
papers, in which he stated that he
had had several conferences with Mr..
Morgan on finances and munitions.
On the following day, evidently
not satisfied with the effect of his
previous statement, Mr.. Dawson
went to the extremity Of writing out
an elaborate interview and sending
it to the newspapers. The banker
spent much effort in his labored ar
ticle to seek to impress upon his
readers that he regarded the finan
cial and military resources of Eng
land and France as marvellous. He
intimated that he expected their
trade with us to continue long after
the war, and that for that reason it
was in a measure our duty to extend
liberal credits to them
A day or so afterward Mr. Dawson
took a hurried trip to Chicago, ac-
companied by Charles III Sabin,
president OF the Guaranty Trust
Company, who ten or twelve days be-
fore had made himself conspicuous
by an official statement that Germany
was seeking peace through the me-
dium Of Ambassador Gerard. When
this canard exploded, Wall Street in
timated that Mr.. Sabin had been mis-
led by bankers at q conference at the
Morgan offices.
In Chicago after having the lead
ing bankers instructed to meet him,
Mr.. Dawson came out more openly
and said: II believe the time has ar
rived for us to recognize that it is a
measure of safety for us to accept
the bonds of great nations, such as
England or France, rather than TO
demand collateral for orr lendings."
II is decidedly unusual for
banker Of Mr.. Davison's prominence
to display such desperate anxiety for
publicity His eagerness to seek to
convey the impression in this country
that English and French finances are
on a sound footing which is con-
'rerv 10 I'll the statements made by
English financial authorities in pub
lications such as the Statist and the
Economist-wa evidently n result
Of direct instructions from Mr.. Nor
gan. The latter, who has been in
England for some time, evidently has
seen that the long expected crisis has
come upon that country and he is
now doing all in his power to gather
more hundreds of millions of Amer
lean money to be flung into the
whirlpool that is leading to the un-
doing of the British Empire.
No wonder the Morgan interests
ere desperate simultaneously with
the return of Mr.. Dawson, an ex-
tensive advertising campaign was be-
gun in trying to float the latest loan
TO Great Britain of $500 100000
! 51A bonds. These bonds are not go
| ing at all well The Morgan banks
are becoming fairly choked mp with
I foreign nglish, French and
! Russian. This financing has been on
terrific scale, unprecedented in the
history Of their banking house
Including the latest $500, 100000
/ loan to England, the S100, 100000
provided ten days before for the
/ French and the $50,000,000 for the
! city Of Paris, the foreign loans
placed in this country since the out
! break OF the war amount to S2,O4O,-
/ 100000. These issues have eaten up
the Investment ability of the country
There is scarcely a railroad system
or Industrial company tnat dares
bring out security issue, owing to
the fact that England is Offering
bonds at 5@ 20 and Russia others at
6 6la96
Why then, must the Morgans
make this despairing appeal for Eng
land and France, especially at a time
& 4. fA -
100000 English bonds? Why must
Mr.. Dawson feel it his duty to in
struct us that we must by all means
extend unlimited credit to England
and her Ally on security without col
lateral, when the present bond offer
ing with collateral is by no means a
success?
Each issue that is now being
brought out by England, France and
Russia has a higher interest rate, and
is being marketed at a lower dis
count. Countries whose credit is
good whose resources are as unim-
paired as Mr. Dawson would lead us
to believe, do not hawk their bonds
about the international markets at
interest-bearing rates ranging from
51b Il to 6 V @b. III British credit is
so good, why is she selling exchequer
bonds in London with interest at
So? Why, the latest German war
! loan is only 5@a. England which
Mr.. Dawson Is trying to make us be-
lieve is so strong financially is pay
ing one per cent. more for her money
than Germany. How Is that?
What is in the wind, anyhow? Why
are the Morgan group so anxious?
We see in this latest English bond
offering of $300,000,000 that the
Morgan syndicate had to go out ol
its own circle to get bankers to helI
underwrite the issue. The under
writing syndicate as advertised in
cludes institutions such as the Con
tlnental & Commercial Trust anc
Savings Bank of Chicago, and the
Marine National Bank of Buffalo
These banking institutions were mo-
included in the syndicate which
foated the $500, 100000 Anglo
French loan Are the resources o