The Waterbury Democrat., 1937-04-01

bought with CneT caSn. Ilat eAIi They owed our people, including tn lars. It was becoming impossible money. This would be fatal first which was living on this war busin'
 But first as to this fear of what would happen if the war ended. In March, 1916, there were runors of peace. The market broke quickly but the disturbing rumors were quickly refuted. In October, 1916, another such rumor spread.
 '"The president of one of our big trust companies" said the Annalist, "took half dozen newspaper men into his private office and whis- pered to them that Germany was about to make peace. When the news leaked out the market broke badly"
 Dread of Peace
 Grips Wall Street
 After this there was much talk of peace. Just as in the early days of the trouble Wall Street looked with terror upon the war, now it looked with equal terror upon the possibility of peace. The fear of peace haunted many minds. We had a vested interest in the con- tinuance of war.
 Then in December the German government decided that 1t would throw every ounce of power and its wrath into one mighty effort. Be- fore doing so 1t decided to make a bid for peace negotiations. The proposal came suddenly. The An- nalist described 1t thus:
 "Tuesday, one half hour before opening time, news of Germanys move for peace. It conjured up in the minds of traders prospects as terrifying as the declaration of war. Transactions amounted to l. O19,000 on Monday. On Tuesday they went to 2,352,000. There was 8 dumping of securities, etc."
 The market in fact suffered a panic. And the market did not re- cover until our own entry into the war seemed clear.
 Then Germany unleashed, her fi- nal ruthless submarine campaign and stupidly announced. as sort of special concession to America, that she would permit one steamer 8 week to sail to England. The challenge fell among us at mo- ment when the holders of three bil- lion dollars of Allied notes and bonds were in desperate apprehen- sion about their holdings and when every factory in America was riln- ming full speed to supply arms to the Allies and supplies for the em- ployes of those arms factories. A shout. of anger went up in Amer ica.
 Only Uncle Sam
 Left as Lender
 Meantime the other little known factor was bringing all to 8 head. England was at 8 point where she did not know where to turn for another shilling to pay her bills here. She had pledged an immense amount of securities as collateral for the loans she had made. There was no lender in sight big enough and with enough credit to finance any further purchases here no lender. but one. That was the gov- ernment of the United States.
 And thus at this juncture the whole situation became perfectly clear. In March our ambassador at London, Mir. Walter Hines Page, cabled to President Wilson frankly and bluntly outlining the whole picture. This seems to me to be the most amazing document of the war:
 "The inquiries which have made here" read the cable. about finan- cial conditions disclose an interrla- tional situation which is most alarming to the financial and in- dustrial outlook of the United States {. ! England cannot contin- ue her present extensive purchases in the United States without ship ping gold and there are two rea- sons why she cannot do this (sub- marines and cannot afford the goi0 There Is therefore pressing danger that transatlantic trade will come to end Tha re- tf-- ;.