Fighting for peace

by Henry Van Dyke

From the very beginning it seemed clear to me that one of the greatest difficulties in the first days of war would be to secure a supply of ready money for American travellers in flight. As a rule they carried little hard cash with them. Paper money would be at a discount; checks and drafts difficult, if not impossible, to negotiate in Holland. Moratoriums were falling everywhere as thick as leaves in Vallombrosa.

So I went directly to my friend Foreign Minister Loudon, and asked him a plain question.

"Would your Government be willing to help us in getting American travellers' checks and drafts on letters of credit cashed if I should indorse them as American Minister?"

He answered as promptly as if the suggestion had already been formed in his own mind—as perhaps it had.

"Certainly, and gladly! Those pieces of paper would be the best securities in the world—short-term notes of the American Government. If you will get the authority from Washington to indorse, the Bank of the Netherlands will honor the checks and drafts; and if the Bank hesitates the National Treasury will cash them."

I cabled to the Department of State asking permission to make the indorsements (a thing hitherto expressly forbidden by the instructions to diplomatic officers), and explaining that I would take in each case the best security obtainable, whether in the form of a draft on a letter of credit or a personal note of hand with satisfactory references, and that no money should be drawn except for necessary living expenses and the cost of the journey home. The answer came promptly: "You have the authority to indorse."

So a system of international banking between two Governments was introduced. I believe it was absolutely a new plan. But it worked.

Then another idea occurred to me. The letters of credit were usually drawn on London or Paris. In both cities a moratorium was on. Why not make the drafts directly on New York? Why not call on the signer of the letter of credit for the money instead of calling on the addressee? This would cut out any possibility of difficulty from the moratorium.

This also was a new method. But it seemed reasonable. We tried it. And it worked. A visiting committee of New York bankers to whom I related this experience later laughed immensely. They also made some remarks about "amateurs" and "audacity" which I would rather not repeat. But upon the whole they did not seem shocked beyond recovery.

So it happened, by good fortune, that there was never a day in The Hague when an American fugitive from the war, homeward bound, could not obtain what cash he needed for him to live and to get to the United States. But not money to buy souvenir spoons, or old furniture and pictures. "Very sorry," we explained, "but our Government is not dealing in antiquities at present. It is simply helping you to get home as quickly and comfortably as possible. Please tell us how much money you need for board and passage-money and you shall have it."