The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1859-03-19
FINANCIAL AND CONNER CIAL

FRIDAY, March 1S--5P ii.
The prospect of n European war continues TO be the
chief topic Of conversation in mercantile and financial
circles. We touched yesterday upon the probable ult
mate effects Of great European upon this country,
namely the injury would do our cotton and our COM
generally and the benefit would be the gran
provision and shipping interests These would be its u
effects What the immediate effects Of declaration
Of would be upon stocks money and merchandise, it
is interesting TO inquire; the as, if there TO be
any war; quite likely that the month Of April will not
pass without overt act Of hostility. Sardinia is said
to be rampant, and the menacng attitude Of all the Powers
involved is too harrassng and expensive TO be maintained
for any great length Of time.
The natural tendency OF tie Of declara-
tion Of in Europe should be to create pa
mic here. War is event fraught with immense
mischief 10 commerce and confidence. The natural
calculation would therefore be- that the
Of actual hosttes stocks should decline, money rise in
value and enterprise receive check But, in fact the
very contrary may happen. The declaration Of the Cri
mean caused panic here and the signature Of the
treaty of peace caused sudden improvement stock
money markets. Both had been forcseen AMI
discounted 1t is quite likely tha. same thing may
again The apprehension OF has already checked
commerce. in England and France and the check has been
felt here we'll Stocks in market have been already
depressed as much by the prospects of as by any
other cause parties who might become buyers waiting
TO whether the outbreak OF hoses may not depress
prices still further the from Europe for the next
three four weeks should be Of the character
that brought by the last steamer the public mind will be
famiarzed with the prospect, aud far from causing
panic, the actual settlement. Of the question,
by declaration Of war, might be hailed as a
satisfactory issue from embarrassing complica'
tion. II, moreover, it DC true as the papers assert
paetie vrin holfo in fbo f,tsr
of This country, only waiting to sec the worst of the
matter 10 become buyers OF stocs s possible that
thearrval ofhe declaration Of might considered by
thesc parties good time to carry their views and
that stocks might rise in consequence.
As 10 money, ii is not unlikely but that for few days
rates might rule higher the receipt OF news Of actual
war declaration OF would frs Brighten lenders
the European markets. and ii Is natural TO expect that
market would sympahize In few days, OF course
the hurry would subsde, and money would fall 10 the
point liked by the law OF supply and demand; which
point so far as at present appears be much higher
than tie current rate but, at rst it z probable that the
banks and private lenders would exact higher from
their dealers.
It's sometimes said in the street that war would
flow Of bullion from this country to Europe This is
msapprehension peace and war have no more influence
on the exchanges between the United States aud Europe
than they have upon the trade In watches bandanas
When our consumption OF foreign goods exceeds our ex-
port Of domestic produce foreign exchange riscs and
specie is shipped to square the account; this s the
whole mystery Of the foreign exchanges, and any
one can at glance how independent they are of po.
ltca complications The probable course Of foreign OK.
change may always be discovered by comparison Of the
import of foreign merchandise and dry goods with the
port OF cotton -four and provisions Exchange has been
high unusually high for the past three or four months
because the shipments Of breadstus have fallen almost 10
nothing also because the holders Of cotton in sOoh
by holding for higher prices than those current in the
European markets. have checked The export Of that staple