The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-06-24
The Effect ON Commerce.

o.
Tho bearing upon commercial interests OF . war In
which Great Britain is not engaged becomes substantially
Sot he influences Al WORK out Of which such results are
derived Of very complex nature The present low
price Of consols Is by no means wholly attributable TO
apprehensons Of The competition OF other invest
mens and the scarcity OF oanabe capital for two
or more past have gone much further to make f1oo
in the Three per Cents worth only fs5 or $50 in
cash The need Of realizing under extreme pressure
which has been felt In London during the last four
weeks has operated sl moro forcbly; and though the
state OF continental affairs may have had something TO
do in bringing things to crisis in the city, we can ut
most only charge the three threaennk bclgcren with
having raised the last breath which blow down the tower
Of cards Nevertheless in part, the depreciation Of
stocks and produce does proceed directly from the nse
sgry Of peace elm, IN Europe There Is coincidence Of
the danger OF war the lower the quotations on the Lon
don Exchange the better the hopes OF peace the higher
Except for incident In the existing complication to
which shall presently refer II would hardly be worth
while TO the causes Of 30 natural decline in
the value OF Investments When country goes 70 war
II needs loanabe capital, that Ia, capital unin-
vested and capable Of passing freely from hand 70 hand
SCRIP and contractors supply uniforms pro-
visions storage in exchange for nothing better than
no, 30 quickly return It's usual channels II Il were
circulating under the normal condition OF trade Bel
igerents therefore must provide themselves with gold
the forced loan in veneta though small afar viii
drive stocks and shares upon tho market viii increase
number and weight OF buyers. These results cannot be
localized II an English capitalist can buy say Lom-
bardo Venetian railway shares cheap at Trieste or Man
clearly he win not buy dear In London Paris But the
forced loan in venca nothing 10 comparison TO what
may DO expected. Prussia has good credit can borrow
largely good terms and must borrow II she Is 70 keep
half million OF mon the field Tho prospect OF such
already operates TO cheaper other stocks
Austria Also and italy cannot last long without loans
contracted at however runous sacrifice, while an ex-
tension OF the parties to the war might bring forward the
Russian Turkish, French concevably even the English
government 10 borrow funds from private sources All
possibilities are discounted and no wonder stocks In
That effect would indeed have been more marked than
Il has been but for the Intervention OF q not uncommon
disturbing cause Tho actual and potential amount OF
10 be Deprecated; but on the other hand the pur.
chasing power In the form neatly expressed by recent
French writer the tonSms monsasrs IL likewise aug.
curitIes The Italian government has issued ten millions
sterling In paper money, and the Austrian government
has issued the equivalent OF about twelve millions or
more including hs coupons " 81 debt In vopss which
payment OF taxes Prussia has issued loan notes. ana
must not forget that England has released n not
created surplus Of bank notes but the Pruss an notes
10 the extent OF their face value only, while
the Bank OF England n already resuming s proper posi-
ton Neither do the Italian and Austrian issues njurs
prices OF commodities beyond their borders nearly
10 their full extent The chief effect every must
be felt a home In Austria almost the whole injury will
be domestic because Austria had suspended cash pay
ments long beforehand and has little metallic money 10
export In Italy part OF the ten millions Of paper will be
accounted for by export OF bullion and the by pro-
MUM gold that r. discount against notes THIS partial
expor, from Italy will represent the whole Increase Of
the anfsms osfairs which be effective In England
and France Prom italy bullion arrives and will arrive
In Paris enabling the Bank OF France 10 work with
England from drain which wousd Otherwise be greater
than n H. This contribution II Italy however, 20 the
purchasing power appears 70 os than compensated
br tho new demands upon u fos The purposes q We