The Barnwell people. (Barnwell, S.C.) 1884-1925, August 26, 1915, Image 5
*
IjWWWHWWWIBf •.
REfllSESjROTlST
(T OF NOTE TO AUSTRU ON
CONTRABAND EXPORTS
EMBARGO UNCONSIDERED
The V -ited States Flatly Rejects Aus
tria’s Appeal—Lansing Shows That
Germany and Austria Hare Always
Trafficked in Arms—Precedent
L'
Would Imperil Our Satpty.
The text of tho note follows:
“The government of the United
States has given careful considera
tion'to the statement of tho imperial
and royal governments in regard to
the exportation of arms and ammu
nition from the United States to the
countries at war with Austria-Hun
gary and Germany.
“The government of the United
States notes with satlsf. ction the
recognition by the imperial and royal
government of the undoubted fact
that its attitude with regard to the
exportation of arms mu ammunition
from the United Strtes is prompted
by its intention to ‘maintain the
strictest neutrality and to conform
to the letter of the nrevisions of in
ternational treaties,’ but is surprised
to find the imporiol and royil govern
ment implying that the observance of
the strict principles of the l«.w under
the conditions which have developed
in the present war is incufficient, and
asserting that this government
should go beyond the long recognized
rules governing traffic by neutrals
and adopt measures to ‘maintain an
attitude of strict parity with respect
to both belligerent parties.’
Can Not Accede to This Position
“To this assertion of an obligittop
to change or modify the rules of in-
, ternational usage on account of spe
cial conditions tho goverpment of the
United States cm not accede. The
recognition of an oblig'.ticn of this
sort, unknown to the International
practice of the past, would impose
upon every neutral nation a duty to
sit in judgment on the progress of a
war and to restrict itc commercial
intercourse win a belligerent whose
naval succecse^irevented the neutral
from trade with the enemy.
“The contention of the imperial
and royal government appears to be
that the advantages gained to a bel
ligerent by its superiority on the sea
should be equalized by the neutral
powers by the establishment of a sys
tem of non-intercourse with the vic
tor.
“The imperial and royal govern
ment confines its comments to arms
and ammunition, but, if the principle
for which it contends is sound, it
should apply with equal forco ro all
articles of contraband. A belligerent
controlling the high seas might pos
^ess an ample fcupply of arms and
ammunition, but be in want of food
and clothing. On the novel principle
that equalization is a neutral duty,
neutral nations would be obligated to
place an embargo on such articles
because one of the belligerents could
not obtain them through commercial
intercourse.
On I .and a* Well as Sea
“But, if this principle, so strongly
urged by the imperial and royal gov
ernment, should be admitted to ob
tain by reason of the superiority of a
belligerent at sea, ought it not to
operate equally as to a belligerent
superior bn land? Applying this the
ory of equalization, a belligerent who
lacks the necessary munitions to con
tend successfully on land ought to be
permitted to purchase them from
neutrals, while a belligerent with an
abundance of war stores or with the
power to produce them should be de
barred from such traffic.
“Manifestly the idea of strict neu
trality now advanced by the imperial
and royal* government would involve
a neutral nation in a mass of per
plexities which would obscure the
whole field of international obllga
tipn, produce economic confysion,
and deprive all commerce and Indus
try of legitimate fields of enterprise,
already heavily burdened by the un
avoidable restrictions of war.
Going to the Record
“In this connection it is pertinent
to direct the attention of the impe
rial and royal government to the fact*
that Austria-Hungary and Germany,
particularly the latter, have during
the years preceding the present Euro
pean war produced a great surprlus
of arms and ammunition, which they
sold throughout the orld and espe
cially to belligerents. Never during
thaC period did either of them sug
gest o* apply the principle now advo
cated by the imperial and royal gov
ernment. v
"During the Boer .War between
Great Britain and the South African
republics, the patrol of the coasts'of
neighboring neutral colonies by Brit
ish.navaDvessels prevented arms and
ampappitions reaching the Transvaal
or' the Orange Free State. The allied
republics were in a situation almost
identical in that respect with that in
which Austria-Hungary and Germany
find themselves at the present time.
Yet, in spite of the commercial isola
tion of one belligerent, Germany sold
to Great Britain, the other belliger
ent, hundreds of thousands of kilos
of explosives, gunpowder, cartridges,
shot and -weapons, and it is known
that Austria-Hungary also sold simi
lar munitions to the same purchaser,
though in smaller quantities. While,
as compared with the present war,
the quantities sold were small (a
table of the sales Is appended), the
principle of neutrality involved was
the same.. If at that time Austria-
Hungary and her present ally had re
fused to sell arms and ammunition to
Great Bfltain on the ground that to
do so would violate the spirit of strict
neutrality the imperial and royal gov
ernment might with greater consist
ency and greater force nrge Its pres
ent contention
la the
quantities qf arms and military stores
were furnished to Russia by Prus
sian manufacturers; that during the
recent war between Turkey and Italy,
as this government Is advised, arms
and ammunition were furnished to
the Ottoman government by Ger
many; and that during the Balkan
wars the belligerents were supplied
with munitions by both Austria-Hun
gary and Germany. While these lat
ter cases are not analogous, as is the
case of the South African War, to the
situation of AustrU-Hungary and
Germany In the present war, they
nevertheless clearly Indicate the long
established practice of the two em
pires in the matter of trade In war
supplies.
“In view of the foregoing state
ments, this government is reluctant
to believe that the imperial and royal
government will ascribe to the Unit
ed States a lack of impartial neu
trality in continuing its legitimate
trade in all kinds of supplies used to
render the armed forces of a bellig
erent efficient, even though the cir
cumstances of the present war pre
vent Austria-Hungary from obtaining
such supplies from the markets xif
the United States, which have been
and remain, so far as the action and
policy of this government are con-)
cerned, open to all belligerents alike, t
The American Policy
“But, in addition to the question
of principle, there is a practical and
substantial reixon why the govern
ment of the United States has from
the foundation of the republic to the
present time advocated and practiced
Unnsstricted trade in arms and mill-,
tary supplies. It has never been the
policy of this country to maintain in
time of war a large military estab
lishment or stores of arms and am
munition sufficient to repel invasion
by a well-equipped and powerful
enemy. It has desired to remain at
peace with all nations and to avoid
any appearance of menacing such
peace by the threat t f its armies and
navies. In consequence of this stand
ing policy, the United States would,
in the event of attack by a foreign
power, be at the outset of the war
seriously, if not fatally, embarrassed
by the lack ^of arms and ammunition
and by the mCans to produce them in
sufficient quantities to supply the re
quirements of national defense.- The
United States has always depended
upon the right and power to purchase
arms and ammunition from neutral
nations in case of foreign attack.
This right, which *t claims for itself,
it can not deny to others.
“A nation whose principle and pol
icy it is to rely upon international
obligations and international justice
to preserve its political and territo
rial Integrity might become the prey
of an aggressive nation whose policy
and practice it is to increase its mili
tary strength during times of p6aee
with the design of conquest, unless
the nation attr jked cr|t, after war
had been declared, go into the mar
kets of the wodt^and purchase the
means to defend itself against the
aggressor.
“The general adoption by the na
tions of the world of the theory that
neutral powers ought to prohibit the
sale of arms and ammunition to bel
ligerents would compel every nation
to have in readiness at all times suf
ficient munitions of war to meet any
emergency which might arise, and to
its military and naval forces through
out the progress of a war. Manifest
ly, the application of this theory
would result in every nation becom
ing an armed camp, ready to resist
aggression and tempted to employ
force in asserting its rights rather
than appeal to reason and justice for
the settlement of international dis
putes. ''v , •
A World Militarism
“Perceiving, as it does, that the
adoption of the principle that it is
the duty of a neutral to prohibit the
sale of arms and ammunition to a
belligerent during the progress of a
war would Inevitably give the advan
tage to the belligerent which had en
couraged the manufacture of muni
tions in time of peace and which had
laid in vast stores of arms and am
munition in anticipation of war, the
government of the United States is
convinced that the adoption of the
theory would fprqe. militarism on the
world and wosk against that univer
sal peace which is the desire and pur
pose of all nations which exalt jus
tice and righteousness in their rela
tions with one another.
-^‘Tbe government of the United
States in the foregoing discussion of
the practical reason why it has ad
vocated and practiced trade in muni
tions of war, wishes to be uncrer-
stood as speaking with no thought of
expressing or implying any judgment
with regard to the circumstances of
the present war, but as merely put
ting very frankly the argument in
this matter which has been conclu
sive in determining the policy of the
United States.
The Austrian Assertions
“While" the practice of nations, so
well illustrated by the practice of
Austria-Hungary and Germany dur
ing the South African War, and the
manifest evil which would result
from a change of that practice ren-
dey compliance with the suggestions
of the imperial and royal government
out of the question,jeertain assertion-
statement as grounds for its conten
tions can not be passed over without
comment. -
“These assertions are substantially
as follows: f
“(11 That the exportation of arms
and ammuntion from the United
States to belligerents contraveires
the preamble of The Hague conven
tion No. 13 of (2> that it is
inconsistent with the,refusal of this
government to allow delivery of sup
plies to vessels of war on the high
seas; (3) that according to all au
thorities on International law who
concern themselves more properly I
with the question, exportation should
be prevented when this traffic as
sumes such a form or such dimen
sions that the neutrality of a nation
becomes involved thereby.
“As to the assertion that the ex
portation of arms and ammunitions
contravenes the preambl#' of The
Hague convention No. 13 of 1907,
this government presumes that ref
erence is made to the last paragraph
of the preamble, which is as follows:
“Seeing that, in this category of
ideas, these rules should not, in prin
ciple, be altered, in the course of the
war, by a neutral power, except in a
case where experience has shown the
necessity for such change for the pro
tection of the rights of that power.’
“Manifestly, the only ground to
change the ;ules laid down by the
convention, one of which, it should
be noted, expliclt'y declares that a
neu.tral is not bound to prohibit the
exportation of contraband of war, is
the necessity of a neutral power, to
do so in order to protect its own
rights. The right and duty to deter
mine when this necessity exists rests
with the neutral, not with a belliger
ent. It is discretionary, not manda
tory. If a neutral power does not
avail itself of the right, a belligerent
is not privileged to complain, for in
doing so it would be In the position
of declaring to the neutral power
what fs necessary to protect that
power’s own rights. The imperial
and royal government can. not but
perceive that a complaint of this na
ture would invite just rebuke.
ConKisteney of Washington
“With reference to the asserted
inconsistency of the course adopted
by this government in relation to
tlie exportation of arms and ammu
nition and that followed in not allow
ing supplies to be taken from its
ports to ships of war on the high
seas, it is only necessary to point out
that the prohibition of supplies to
ships of war rests upon the principle
that k-neutral power must not per
mit its territory to become a naval
base for either belligerent. A war
ship may, under certain restrictions,
obtain fuel and supplies in a neutral
port once in three mouths. To per
mit merchant vessels acting as ten
decs to carry supplies more often
than three months and In unlimited
amount would defeat the purpose of
the rule and might constitute the
neutral territory a naval base. Fur
thermore, this government is un
aware that any Austrla-Hungartan
ship of war has sought to obtain sup
plies from a port In the United
States, either directly ^r indirectly
This subject has, however, already
been discussed with the Imperial gov
ernnM>nt, to which the position of this
government was fully set forth De
cember 24. 1914.'
What the Authorities Say
“In view of the positive assertion
in the statement of the imperial and
royal government as to the unanimi
ty of the opinions of text writers as
to the exportation of contraband be
ing unneutral, this government has
caused a careful examination of the
principal authorities on international
law to be made. As a result of this
examination It has come to the con
clusion that the imperial and royal
government has been misled and has
inadvertently made an erroneous as
sertion.
“Less than one-fifth of the authori
ties consulted advocate unreservedly
the prohibition of the export of con
traband. Several of those who con
stitute this minority admit that the
practice of nations has been other
wise. #
"It may not be inopportune to di
rect particular attention ot the decla
ration of the German authority, Paul
Einicke, who states that at the be
ginning of a war belligerents have
never remonstrated against the enact
ment of prohibitions on trade in con
traband, but adds that such prohibi
tions may be considered as violations
of neutrality, or at least as unfriend
ly acts, if they are enacted during a
war with the p .rpose to close unex
pectedly the sources of supply to a
party which heretofore had relied on
them.
“The government of the United
States deems it unnecessary to ex
tend further at the present time a
consideration of the statement of the
Austro-Hungarian government. The
principles of international law, the
practice of nations, the national safe
ty of the United States and other na
tions without great military and nav
al establishments, the adoption of
peaceful methods for the adjustment
of international differences, and, fin
ally, neutrality itself are opposed to
the exportation of arms, ammunitions
or other munitions of war to bellig
_ erent powers during the progress of
appearing in the Austro-Hungariafi the war.’’ ’
To the note of the United States government to Austria-Hungary, re
jecting the pie* that an embargo should be put on exports of munitions to
the Allies, was added as an “appendix’’ a table of the German and Austro-
Hungarian exports of arms and ammunition to Great Britain during the
years in which war was being waged with the Boers. The dta are as
follows:
German Exports of Arms and Ammunition to Great Britain
,/ —Quantity in 100 Kilos.—
99.
Explosives 4,342
Gunpowder 28
Shot of malleable iron, not polished, etc.
Polished, etc., not lead coated
Shot, nickled, pr lead-coated with copper
rings, etc 3,018
Weapons for war purposes
Cartridges with copper shells and percussion
caps
Austro-Hungarian Exports of .Arms and Ammunitnon to Great Britain.
tity in 100 Kilos.—
1902.
190 374 12 ....
1
2 . 3 80 3
LYNCH LEO FRANK
WILSON HASPS METAILS
OF ATTACK UPON THE LINER
MOB TAKEf CONVICT FROM
GEORGIA PENAL FARM
HUNG UP AT MARIETTA
i
1899.
1909.
1901.
1902.
4,342
6,014
5,147
3,64o
28
658
243
69
30
43..
38
4
—
—
3,018
176
....
—
18
2
904
1,595
866 *
982
-Qu&ntt
189*7 1900. 1901,
Arms, exclusive of small arms
Separate parts of arms .. ..
Small arms T
"It might he further pointed out
that during the Crimean War Urge
Ammunition and exploit
I4«
Other aamulUoa and exploaivee
under tariff No.
1«
4
61
Five Autos Carry Frank One Hun-
deed Miles in Dead of Night—
Prison Guards are Handcuffed
While Victim is Secured Body
Not Mutilated and no Shota Fired.
k Leo M. Frank, serving a life term
at the Georgia state farm at Mil-
iedgeville for the murder of Mary
Phagan, and who was only saved
from the gallows by Gov. Slaton com
muting his sentence, was taken from
the farm at 11.45 o’clock Monday
night by a party of twenty-five un
identified men, who hurried him
away in an automobile in the direc
tion of Eatonton.
Shortly before seven o’clock Tues
day morning he,was hanged to an
oak tree in a woods two miles east of
Marietta, Ga., after having been-re
moved from the prison farm one hun
dred miles away late* Monday night
by a band of about twenty-five men.
Thus ended the career of the man
who for two years had maintained
his innocence of the murder of Mary
Phagan.
Frank, on his ride to death, was
clothed in a silk night shirt, with the
letups “L. M. F.” embroidered over
his heart. When found Tuesday a
white handkerchief had been proced
over his face and a piece of brown
cloth bound around his limbs. His
bands were bracketed before him
and his feet were bound with a piece
of rope. The hangman's knot lay
against his right jaw.
Discovery of the body was made
at eight-thirty Tuesday morning by
searching parties, which had been or
ganized after Frank's removal from
the prison farm became known. The
news spread with lightning-like rap
idity and within half an hour hun
dreds of people, including scores of
women and children, from Marietta
and the surrounding,countryside be
gan to arrive to vlew’lt.
The scene of the hanging was with
in two hundred feet of the roadway
In a few hundred yards of two farm
houses. Occupants of both said they
had noticed nothing unusual during
the early morning hours. ^However.
William J. Frey, a former sheriff. In
whose woods Frank was hanged, liv
ing a half mile further east, said four
automobiles passed his house shortly
before seven o'clock Tuesday morn
ing. each containing six or seven
men. * M
“I paid no particular attention to
them." Mr. Frey added, “and the
possibility of a lynching did not oc
cur to me.”
The mob apparently planned their
work well, for they carried it through
without • hitch. Between Mllledge
ville and the state farm and between
MilledgeviUe and Macon they cut the
telephone wires and it was fully an
nour or more after they had secured
their man and hastened on their way
before the news came opt.
As far as could be learned none of
the members of the mob were recog
nized. All of them are said to have
worn masks and all were heavily
armed. Not a stipt was fired and no
one was injured, as far as known.
When the mob first rerxhod the
state farm they separated into three
groups. One went to the home of
Captain Burke, the farm superin
tendent, and after calling him from
the house they covered him with
their guns and slipped the handcuffs
on him. Thlp group took Captain
Burke to the prison farm dormitory
and forced him to open tho door.
Another group secured and hand
cuffed Warden Smith in the same
manner as the other had done Cap
tain Burke. Two guards sleeping on
the front porch ware overpowered
and handcuffed also.
-Warden Smith and Captain Burko
both declared they failed to recog
nize any of the members of the mob,
but one of the convicts overheard a
remark dropped by one of the. mob
that they intended to take Frank to
Marietta.
Practically every other member of
the mob then rushed to the stockade
gate nearest the dormitory where
Frank was being housed. Only
Tuesday did the physicians discharge
him from the hospital where he had
been since being murderously as
saulted in the dormitory.
Only one member of that part of
the mob that went to the dormitory
talked. He gave the commands to
the guards which were backed up by
the arms of the other members of the
mob.
The body of Frank, under a heavy
police guard, was placed aboard a
train, which departed from Atlanta
at 12.01 o’clock Wednesday morning.
The-funeral party including Mrs.
Frank and several Atlanta friends of
the family, ^ho ,wlll accompany the
body to Brooklyn, also was guarded
carefully by the police until the train
left the terminal station.
Gov. Ngt E. Harris of Georgia has
announced^that he will return to At
lanta. for the purpose of aiding the
prison commission In an Investiga
tion, of the lynching of Frank. "The
people are entitled to all the facts In
the case,” said the governor, “and I
propose to see that they shall.have
th'fctti.” He said that a thorough in
quiry will be made.
Taknj Ixing Auto Rida While Ke-
aolving in Hia Mind the Lat
ent Happening.
The official details upon which
President Wilson wfll decide whether '
the sinking ot the White Star liner j
Arabic‘was an act deliberately un-1
friendly to the United States,. still |
were lackipg at Washington Friday.
Meanwhile the president and other
officials, while realizing fully the
gravity of tho new situation between
the United States and Germany, were
keeping their minds open.
’ President Wilson left the White
House early to motor to Philadelphia
to visit 6ls oculist. When ho has a
deep problem In bis mind, it is the
president's habit to seek secutsion,
after riding through the countryside.
Only two official dispatches had been
received. They merely transmitted
the reports of the While Star liner.
The United States will decide its
course upon the reports of its own
Officials.
Ambassador Page forwarded a
Wbite Star lino report that the ship
was torpedoed without warning and
Vice Consul Thompson at Queens
town made a similar report. Neither
accounted for Mrs. Josephine S- Bru-
gulere, nor Dr. Edmund Woods, the
two Americans still missing.
There is no attempt in official
quarters to minimize the situation
confronting the president if investi
gation develops a violation of Ameri
can right%indeflance of the lost note
to Germany which gave notice in
final terms that.another sinking like
that of the Lusitania would be con
sidered an act “deliberately unfriend
ly.” ^
The prospect of severance of dip
lomatic, relations again came forward,
but it was understood that If such a
course should be decided on. it would
not immediately be announced.
WAR CAUSES NEW
^TEINAl
Statue of Von Hindenborg.
A colossal wooden statute of Field
Marshal von Hindenburg thirty-nine
feet high is to be unveiled August 28
on the Slegesalle in Berlin, which is
lined with statues of Kaiser Wil
helm’s ancestors.. Any German wish
ing to drive a nail into the statue
may do so on payment of 1 'mark
(34 cents). It is estimated that 1,-
100,000 ■oils will be needed to cover
ths figure. The procude will go to
the relief of safer*rs from the war.
ENGLISH POUND
c-;'
AUTO SLID BACKWARD
DOWN STEEP MUDDY HILL
Young Doctor and HU Grandmother
Have Narrow Escape From
Serious Injury
One of the most miraculous es-
capgs from instant death or serious
bodily injuries occurred near 1/ezing-
ton Monday afternoon, when the au
to mobile of Dr. Guy B. Taylor came
uncoupled just as the top of the hill
coming into town from the mill vil
lage was reached.
Immediately the machine reversed
Itself, running backward for a quar
ter of a mile, or till It reached the
foot of the hill, where, in spite of the
efforts of Dr. Teylor, the cur run
into a telephone pole near the em
bankment. coming to a S-Oipl&ilil.
In the machine with Dr. Taylor at
the time was bis aged grandmother,
who was thrown from the car when
the machine came to a sudden and
unexpected stop. Happily the wo
man, in spite of her advanced age
and feeblenesa. came out unlnjurej,
save the great excitement incident to
the hair-aplltting experience.
The escape from death Is the more
miraculous by reason of the fact that
the hill was slippery, a heavy rain
hawing fell during the afternoon.
The brakes refusing to work, there
was nothing for the uriver and occu
pants of the machine to do but “sit
steady in the boat" and try to keep
the machine from running into the
deep ditches on each aide of the nar
row roadbed.
OUR FARMING POPULATION
Over Twelve Million Persons Engage
in Agriculture in America.
Of the total population in conti
nental United States (excluding
Alaska and other non-contiguous
territory) the last federal census
shows that of those engaged In gain
ful occupations, 12,567,925 persons,
10 years of age and over, are engag
ed in agriculture. This is approxi
mately one-third of the total number
engaged in agricultural pursuits is
classified as follows:
Agricultural laborers .. ..6,088,414
Dairymen and’ dalrywomen 35,014
Farmers, planters, and ov-~
erseers 5,981,522
Gardeners, foresters, nur
serymen. etc 143,462
Lumbermen and raftsmen. 127,154
Stock raisers, herders, and
drovers (approximate) . 122,189
Wood choppers 27,567
Turpentine farmers and la
borers .. ••'x- .. .. 28,967
Other agricultural pursuits -- r-
(approximate) ..IX,, 13,636
Apiarists .. .. .. .. .> ^2,145
-.■■■ I / .
For Their Neighbors.
The hardest housekeeping in the
world is the housekeeping tha,t peo
ple do for their neighbors.
Half the troubles we have are
caused by worrying about what peo
ple think. What difference does it
make what they think, anyway? No
one can live his own life and two or
three other people’s lives besidee.
What’s the^ use of setting up
housekeeping on the roof or oa the
outside walls for the benefit of the
neighbors? You would rightly be
judged insane if you suggested any
thing of the kind, and that is prac
tically what half the people do. They
can’t do this because the neighbors
would talk, and they can’t do that
because the neighbors wonder if they
could not afford to do something
else.
They may not say it in so many
words, but they mean it', and It* is
simply a great big Vacuum in some
of our natures where moral courage
ought to be. Half the sting of pover
ty or small means Is gone when one
keeps house for himself and not for
his neighbors
War Orders Cmmo
Decrease in Balance In Thia
try for Belligerent
Loss Involved In Transferring One-
reocy la Very Great. ' - " '
The Amerlchn dollar ruled the fin
ancial world Monday with an Iron
grip. Foreign exchange have gone
down to pew depths in a torre^t-eH^
bills that poured in t^e exchange
markets seeking pay for big war con
tracts. r !
Coincidently with the startling do
cline in exchange rates came tho aa-
sertlon from an unimpeachable
source that every contract foe sup
plies sent abroad called for payment
In American dollars and not pounds
sterling, which heretofore have been
the standard of finance the world
over. The immense losse, therefore,
due to the decline in foreign «■-
change rates, will be borne, to tho
last penny, by foreign buyers—a sit
uation exactly tlie opposite of what
had heretofore been the popular be
lief
The maximum depreciation Mon
day in pounds sterling was 4 3-4 per
cent, below normal; in franc 19 per
met. below normal; In Italian Urea
25 per cent. In the money markets
Monday the pound sold for only
$4.64; 6.02 franc equalled,* dollar,
and a dollar pur^'wd J | Urea,
These were the qViflsnT pm' while
rates were at the lowest. TiF
In the last hour of business the
presence In Wall street of J. P. Mor
gan for the first time since the at
tack on his life six weeks ago and aa
informal conference of bankers to
confer on the exchange situation sent
rates upward.
Sterling closed at 4.64 one-half
point higher than it opened sad a
point and a half under 8aturday*a
close, which had established a new
low record. Francs gained throe
points over the lower record, selling
at 6-99 at the cloee, sad Urea re
bounded a point, closing at 6.47.
Bankers with international conneo^
tions considered a remedy at aa^taa*
formal conference late Monday 19
was decided to do nothlag, chiefly
because the remedy lay with the for- *
eign buyers.' They were the suffer
ers and theirs. It was the conseasaa
of opinion, should be the task of Bet
ting the money markets to rights.
How this would be done was tho
object of keen consideration and
some snecslatioa. It generally eras
believed that the present abnormal
situation would not be permitted to
continue long. The obvious remedy
seemed to be to sell American se
curities held abroad and when this
contingency was studied the situa
tion seemed to be pregnant with
unique possibilities.
A great many millions of Ameri
can securities, parable in dollars, are
held abroad, chiefly high claas rail
road bonds and preferred stock of a
selected list of American Industrial a.
Should these securities be sold, at
the present exchange rates la foreign
markets, they would fetch far morn,
than the purchasers paid for thaar_
due entirely to the depression of ex
change.
Thus a 91.000 American bond aoM*
in Paris at par would, on account of’
prevailing exchange rate, bring ap
proximately .6,000 francs. Wham
purchased at par a year ago it cost
the purchaser approximately 5,050
francs. The net profit would tie
about 950 francs, or about 19 per
cent., the percentage of depression
in francs Li American exchange mar
kets. In London the profit would be
approximately 4%.per cent., and la
Rome the profit would approximate
25 per cet. Establishment here of
a big foreign credit, estimated con
servatively at $500,000,000, waa
thought to be absolutely necessary if
exchange rates were to be restored to
anything like normal.
The assertion that dollars and not
pounds sterling had been the finan
cial standard on which all contracts
for war supplies had been accepted
In this country came as a distinct
surprise. Aside from marking tho
temporary passing of London’s con
trol of the world’s treasure chests It
.relieved anxiety on the part of in
vestors in so-called war specialties
in the stock market who were con
fronted with the prospect of a largo
shrinkage in prospective profits duo
to. prevailing low rates of exchange.
Measured in dollars and cents, it
was learned that the amount of theeo
war contracts, on which full or near
ly full payments would be due on or
before October 1, next, approximates
$400,000,000 to $500,000,000. Thin
is in addition to the huge total of
more than $1,000,000,000 owed
Europe to the United States at
close of the fiscal year Jnne 30. It
was also learned from an authorita
tive source that the prospective prof
its on some of these contracta had
been greatly exaggerated; that only
normal profits would accrue in most
cases, and that In some instances
these might be no profit at all
Two Negroes Lynched.
Kid Jackson and Henry Russell;
negroes, were lynched at Hope Hull,
near Montgomery, Ala., Wedi
because they poisoned some
several months "ago.
. ..y-y- )
More Marines Landed.
Another detachment of Ameii
marines have been landed ct
as the Islanders threaten
refnae to disarm.
X Tha war in Europe is what you'd
call aa International riot. X
/