Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1916-07-25
BANNED FIRMS TO BE
ACCUSED OF VIOLATIONS
United States Precedent to Be Cited
and Effort Made to Show That Amer
lea Will Benefit by South American
Trade Diverted From Germany-Can
Squeeze Germans Out.

as a precedent the conduct of the
Union during the civil war.
Moreover, the British government
will show that its prohibition against
trading with enemy firms really is in
the interest of the United States and
should be welcomed with satisfaction
rather than denounced as an injury
to American interests.
According to advices received here
from London and Paris 1t is a mat
ter of regret in official circles in those
capitals that a wrong construction
has been placed in the United States
upon the blacklist announcement.
Only German Firms Named.
1t is pointed out that only firms
with German names and German con-
nections were placed under the ban;
that those firms had been guilty or
using "a neutral country as means
OF supplying and helping the Ger
man interest and that obviously the
British government was within It's
rights when it directed its subjects
not to trade with them or facilitate
their transactions.
The firms blacklisted, X is declared,
offended repeatedly in such fashion
that there was nothing left for the
British board Of trade to do but to
direct British subjects to have no
dealings with them. The evidence
gathered is conclusive, it is asserted.
and when it is Transmitted to the
American state department it will
appear that the protest ordered by
President Wilson was not well
founded.
Give Civil War Parallel.
AS TO the law involved. 1t will be
pointed ont that the action OF Great
Britain is similar to that OF the
Union in passing statutes aimed az
the tremendous trade with the con-
federacy which sprang up between
Nassau and the Bahama Islands dur
ing the civil war. The British gov
eminent at first protested against
these statutes, and in reply Secretary
of State Seward observed:
The object of the statute Chat OF
1852 is to authorize collector to
refuse general permits for merchan-
disc which may be designed to sup
ply insurgents in arms or in connec-
ton with which there may be danger
that they will fall into the hands OF
the insurgents. The extent of design
and the extent Of danger are facts
which must frequently il not always
be determined by an examination of
the circumstances.
That examination and determna-
ton must be determined by some agent
OF the government and it seems TO the
undersigned that there is no more
ia,- nv n q
the power to make them is conferred
upon collectors of customs than there
is in the language Of a statute which
directs a magistrate to arrest Offend
ers or prevent apprehended crimes
when he is convinced of stated grounds
that crimes have been perpetrated or
proposed
British Protest Failed.
The remcnstrances of Great Britain
in this matter proved of no practical
effect and the virtual blockade of the
neutral ports of Nassau and the Ba-
hamas which was maintained by the
Unions ships, in itself an extraordi-
nary and illegal exercise Of belliger-
ent rights. continued.
The Liverpool ship owners and mer-
chants protested TO T.ondan and Lord
Russell replied saying: ..
THE true remedy would be that
and ship owners of Liver
pool should refrain from this species
of trade"
1t is admitted by state department
experts that legally the United States
has not a leg TO stand on in view Of
the course pursued by the Union. The
president feels, however that it is
necessary at this time to adopt q |
determined attitude in order to pre-
vent an extension Of the blacklist.
U. S. Trade Increase Seen.
In the opinion Of the British au-
thorties the United States should not
only offer no protest to the enforce
ment of the trading with-the- enemy
act but should seize the opportunity
it opens for American citizens.
AS is we'll knewn. many industries
and great part Of the agriculture Of
South America are financed by Ger
man houses. AS a result, German
firms have collected large commits |
sions and a considerable trade has
been delivered to Germany. In recent
years Germany has been a tremen-
dous competitor Of the United States |
and England in Latin America and
was attaining a ontrol which promis
ed German dominance Of an exceed |
ingly valuable market.
In order to promote American trade
congress two years ago passed the |
federal reserve act, which authorized |
the establishment of branch banks |
abroad. In pursuance of this author
ity the National City Bank, after edu- |
eating a number Of young men, sent
them to South America to open up
branches. This meant that american |
firms could do business direct with |
South America instead Of through |
Germany or England and that the |
commission on business would flow in
to the pockets Of American citizens.
Can Squeeze Germans Out.
Great Britain has now forbidden her
subjects to trade with German banks |
and firms. which means restriction |
In the operations of the latter in |
South America. Because of British |
in the war it is i'm |
possible for London to take advantage |
of the blow dealt the Germans. The |
United States. on the other hand. is |
a neutral with a great deal of avail !!
sbie capital. Thus, it is contepded, |
the action of the British government |
furnishes to 'r,erirarE an oppor-