PAYING THE HIRELINGS
“How is this movement to be financed?” one of the newly-elected executive board asked another. He and one of the vice-presidents waited for an answer. They got none, he says, and the question was repeated by another. Then one of the officers answered:
“This thing is big enough, so that I do not care where the money comes from to finance it.”
Another member asked:
“What, after all, does this council want to do?”
“We want,” was the answer, “to stop the exportation of munitions to the Allies. Germany can manufacture all the munitions she wants.”
Von Rintelen’s deposit in the Trans-Atlantic Trust Company meantime was growing smaller by jumps of $100,000. It was drawn by cheques payable to cash, placed in another bank, quickly withdrawn, and on one occasion the money in bills was taken to the headquarters of a peace organization in a suit-case. Bank accounts of von Rintelen’s peace propagandists began to jump.
The executive board was busy. One of the first moves was a statement filed with Secretary of State Lansing alleging that nine ships in various American ports were taking on cargoes of ammunition in violation of the neutrality laws. That charge, undoubtedly prepared with von Rintelen’s aid upon information gathered by German spies, showed an accurate knowledge of the merchantmen loading with supplies for the Allies. There was, however, no violation of law, because the vessels were officered and manned by ordinary seamen who had no connection with the Allied governments.
The second step was the preparation of a complaint charging as a violation of law the issuance of Federal Reserve notes by national banks on the ground that the New York banks had lent money to the Allies which was being used in payment for war supplies, and that some of those banks had rediscounted notes with the Federal Reserve Bank. Here again was displayed a remarkably detailed knowledge of the business of the Federal Reserve Banks. This charge also fell flat.
A third move was against Dudley Field Malone, Collector of the Port of New York. Resolutions were adopted accusing him of exceeding his authority in having granted clearance papers to the steamship Lusitania when that vessel was ladened with munitions, and authorizing an action to be started against him. No suit, however, was begun. In this connection, it may be mentioned that one member of the peace committee was attorney for a woman of Chicago, who, months afterwards, started suit for $40,000 against Collector Malone and Captain Turner, of the Lusitania, on the ground that the ship illegally carried explosives.