New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-07-03
Shipments to South Amer
lea Used to Bolster
Foreign Credit
Loans Obtained
On Resources in u. S.
Profits of Agencies Made
Security in Neutral
Money Markets

The representative Of a large German
insurance company here. who for OBJ
vious reasons did not wish his name
or the name Of his company used, pro-
tested yesterday tina: no harm could be
done to the United States through the
continuance Of business by companies
such as his during the war.
az any harm could come" he asked
"do you think that American insurance
companies would continue doing bust
ness with us? Can any one question
their patriotism"
The answer 10 this question Is tha'
many men buying and writing insurance
not only question the patriotism OF such
companies. but are rcfraining from CIV
ing business to agencies unless assured
that not only will the information they
have TO give be withheld from German
AGENTS. but that their money Will not
no used TO bolster up German credit.
Direct Benefit to Germany
That moneys so paid to German com.
NAMES benefit Germany directly anu
indirectly was pointed out by proml-
nent banker yesterday.
"The only marine insurance tna'
cannot be placed in this country WIN
ont the aid Of any German company
said he. as insurance that as mat
ter of public policy and welfare II
should not be possible to place. II Is
insurance on gold sent to South
America for German account. WIN
ont German insurance and reinsurance
IN would not be possible to protect
gold so shipped.
at is within q short while tnat a
German owned property in Pennsyl-
vania was sold to Schwab interests TOT
100000 The price was paid In golu'
The next day that gold was sent 70
South America. The man IN tne street
NAV not know enough about interna-
tional banking TO know that gold IN
south America can help Germany, but
i. can. For instance, it can be used
there as a basis of credit TO be ex-
tended in Holland or Sweden or Nor
way or Switzerland.
"And, as Lloyd George said at the be.
ginning of the war-or was II Asqultn
the last s100,OO0,000 may decide the
war.
Can Borrow on Securities Here
Again, il is urged that the piliSg, up
OF resources by the American branches
of German companies cannot help Ger
many. Perhaps not. But there Is moth
ing under the sun to prevent the nego-
tiation Of loans in neutral Europe
against securities held here in the
United States 1t would, of course, be
necessary TO pay stiff price for the
accommodation. II would be pawn
brokers rates plus, but as an individual
sorely pressed will pawn the family
Jewels and pay through the nose, II
necessary, so will a nation.
and it should not be forgotten that
for generations Amsterdam, for exam
pie. has been known TO bankers as the
pawnshop Of the world. There is al.
ways money to lend there-if one will
pay the price"
The American companies doing bust
ness with German companies do so IN
most cases under contracts-treatles
they are called in the trade. Most, If
not all. Of these contain cancellation
clauses. and il was reported in the in
surance district yesterday that the
question Of cancellation had been taken
up By the directors Of some companies
IN at least an informal way.
There was nothing to indicate, how
ever, that such action had as yet been
taken by any company.