The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1866-06-23
Ersn, The Neto York Times. $500
Financial Effects of the European

War.
1t is not to be supposed that great
war can occur anywhere in the civil
lied world without some injury to the
United States. The ancient doctrine in
political economy was, that each nation
was better off as her neighbors or rivals
were poorer, and that calamity to one
was good fortune another, and that
each could grow rich out of the others
poverty. But the more correct science
of modern times has seen the fallacy OF
this. II has recognized the commercial
solidarity of peoples, that foreign ma
tions are in the relation to every coun-
try, to u greater or less degree, of GUS
toners to a producer, and the better of
they are, the more they will buy, and
what INJURIES them must OF course les
sen their capacity of purchasing, and
thus diminish the profit ofthe producer.
Again, what they will buy of one Will
depend to a certain extent on what 1t
will buy of them, so that calamity to
any great nation at once, in the cOmpli-
Gated machinery of modern commerce,
brings misfortune to the other members
of the family of nations. The United
States is more independent of other ma
tions-owing to its vast territory and
variety of internal exchanges and pro-
ductions-than any European Power.
Yet we, too, are linked in commerce and
Immigration with all the world, and
especially with Europe. She buys our
cotton, breadstuIfs, dairy products,
machinery and cloths, and during the
last four years has been an enormous
purchaser of our securities, She also
furnishes us with our most valuable
imports-the immigration of substan-
tial farmers and strong labOrers.
The approaching shock of mighty
work in Europe; the withdrawal of
some two millions of men from profit
able production; the immense waste
and destruction of war; the forced
loans of the Governments, must all
have some effect on our own financial
condition. The first influences have
been and will be injurious.
Our customers are suddenly crippled
and impoverished; they cannot send
us such products as they did, nor take
from us our wheat and our butter, and
our cotton and manufactures, to the
extent to which they formerly ordered.
They will not ut first want our bonds
as they did, and must send back some
which they have purchased, and use
the great profits of the sale for strength
ening their position against the storm.
The first impulse of the Germans and
Italians is (as it was here in our wary
to convert everything into gold. The
Governments demand gold for buying
war material, and as consequence IL
great drain of the precious metals en-
sues from the great centre of exchanges
-London-Whichi is naturally felt here.
Apart from the rise of gold occasioned
by speculation, there can be no doubt
that the fear of Il European war has
lessened the value of the dollar to every
man, woman, and child in America.
Emigration also, with its golden tide,
which has been larger the last year
than Ior many years, must, if war en-
sues, be diminished. The German
20 HNyi1l forbid THAR CT hiantS
from leaving the country Mt such Il
time. We must feel then, and some-
what severely, Il European war. But
there are more favorable aspects of the
subject which will soon reveal them
selves.
The continental people will be, in
deed, poorer, but they must live, even
if the Governments support larger
numbers of them in the armies. They
must have our cotton, and may even
demand our breadStutfs, from the ceS-
sation of production at home. 1t is
not imErObnble that a new trade in arms
and machinery may spring up with
this country. After the first impulse
of panic to hoard, or to convert into
gold, the second sober thought will come
of demand for safe securities, delivered
from all the eVentualitieS of this war.
The bonds of two great natIons-the
Austrian and ltalian-are already be-
fore the opening of hostilities, below 40,
and will undoubtedly, il the war should
last two years, be worthless. Prussian
paper is much more valuable, but it
has fallen ten per cent. Gold is dan
gerous to possess in time of invasion,
while paper-bond is less often plum
dered or contiScated, and can be more
ensily concealed. We Wealready hear that
the peasantry "a are seeking for American
securities. This will continue and in
crease, if our own financial course is
wise here the savings OF the German
population will be placed to a great
extent, in United States bonds.
The same thing will be true also of
England. a vast amount of capital
will be accumulating there, which used
to seek Investment on the Continent.
1t will now search for channels ut "a dis
tance from the scene of hostilities, and
will probably turn to securities so safe
and profitable as the American. We
shall soon hear of n substantial rise in
Five-twenties in the British market.
Two of the continental countries are
Just about repudiating specie payments.
The inevitable effect of this is to force
the gold out of the country to Great
Britain and France, where the cessa-
ton of panic, and restored business
with the increased supply, will soon
bring money down to its normal rates
and relieve us here. Large amounts
of cotton soon to go out, and perhaps
other exports, will help us still further.
We may secure some new branches in
the carrying trade in the approaching
struggle. In the meantime we are at
peace; all branches of production are
in wonderful bloom; we only need a
greater contraction of currency to stop
the depreciation of our paper and bring
the dollar near its real value, and we
are growing steadily in substantial
wealth.
The great European war, though it
may shock, will not essentially dam
ageus.
THE "Boo-Ho PARTY.-There are
tIvO TartiaS in avery cOmmunity-uaV