, 1870-07-17
SUNDAY, JULY Il, 1870.
FINANCIAL EFFECTS OF WAR IN EU.
ROPE.

FINANCIAL EFFECTS OF WAR In Eu.
Rope.
The influence which a great war in Eu-
r"i~ must have over prices ot various CON-
'uodisics, of gold, bonds exports, Imports,
r:tlFoad securities, tc, in this country. ia
one that must now, FOR time. engage the
thought, not only Of spectators per se,
l'1st Of capitalists aud business men eener-
ally. Whether there will be war, and. If
81. how long it will last, depend upon in
.lividual caprice and accidents which are
,ot the subject Of prediction. and scarcely
# serious calculation. .An n1misticc
uny be declared at any moment
sssd may end IN compromise The nsSas-
anaton Of Napoleon, or the death of other
parties may change the whole military sit
1satieu, Distressing France to retire to the
defensive.
1,ut assuming ,ha: none Of these changes
orctr. and that France will engage in
thorough irial ii military strength and en-
.'as:ucc with 3Iorth Germany. u state of
facts arises upon which we ought with toll
csa1'lc ciearncss and certainty to outline in
Il lfoal hut geuera}ly Trustworthy manner,
TIE principal results which must ensue to
Anle1ic ~ Industry aud 70 tho prices of our
leading staples and securities.
II our yrn country were in its onainary
Et.aaci1.i condition, with no debt Of conse-
tluvrce. ana with Il currency at par with
sull. the eonseaucaces Of a great var in
Eu,o,,e ,uish, he summed up by SAYING
tia, j, woulI cause an active demand for
n,:r exports at leas. of b1es3s.uf1s: nj first,
:.is,, If Cotton, though the general effect Of
!; Withdrawal Of the labor OF cotton manu-
featuring countries from production would
not. III tie long run, befavorable 10 the rise
If ruw cotton; it would create sudden
d. un1,d Aiso fur the manufacture Of arms
ind munitions of var. in some branches of
which We rank high among nations. aud in
return for these manufactures Europe
woald pay US largely in gold. because its
,ol: manufactured articles of most kinds
sw;il ht SO raised in price there 1,y the
;...s,,rc, of increased use and Suspended
,r,siuct;cn ms 10 }enre on{t
l,c c1.carest article 10. export.
Esrecislr would he.yv e.nort of coid tn
hi. and either countries ensue, II liz
l.3re issats, OF French and pr7,s,ian ho,,is
nE,i PAPER currency. gold should he taisetl
to Premium therc and should pass ont NJ
rse ss a us,Iun, Of exchange. The e,4ee,
ut such III ;utls11 uf gold here would be to
extend credits to enhance prices. first of
exports s..l imports, aaa, gradually. Of ell
ollie. articles. and TO iuaueurate a season
Ct activity and prosperity.
In the present circumstances houexar
tlns<. results NAV. in pars- not ocrur. and
vl..r tlcv do appear their exact onera.
:ivu nav be obscured by the anomalous
c,ulit;ou If vu, own fuances, os,,se;a,lv
1,v f-7,nt debt md our d.,yaciefaJ cnr.
r.ncy.
We laye now ahoat -. ZOO. .t,o1 fpN of
,.st,.:u;I bond. in E,,rone. bes;les czr,,-
ra,.. securities. These Nh, usually saia ia
l4 tie,rnlent 10, their prtce upon tle credit
.,,i revenues ~ o,,r opr corern,,e,t .,1y
Ind II rs truc that, in Tho absence Of anv
increase in tho supnly OF bonds Of tht
s.,nc general nuture as investments. ou,
American bonds do maintain price. rla
tivr]r tn ,hnse If other conntrias xrfich :.
determined bv the ratio Of our revenue ant
resources t., our debt md expenditure. 15u
,,y,.- .,,, nj, onlv delft. Of n Government
1,.,t r.mn- ,al;,i.s of commerce. and as co,r
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- :, -, -
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- ~ y.
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,.e -, ~ .,..s~. .,'
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or.,n,.. .,a na,c..;, i, aa.u<'s,,,,, !.
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n,,,, mrs ,,enress ths n,;ce .,f 3,
in nearly e,,ro] ,7aerco =,
The cxc..s, of the s,,n,v ,f hnuJs nm 81,
ux,r rho ,,,,nu,,a for .b., far, ,,r xocu,;tx
,i,,,.,,c, the n,5c4 If mi, hands NJ c.,,,
,r.ljt.r5 ;ust M surnlr og uhea, fnu
1:rs,;, ,tr,rs ,cs in Iirsrnoo1 the ,,r;c,s :,
c,u,ntf;rr s,,,n1;.s IF xuent fr,m Fran*
,,u1 ria 1.n;,e,, S.nt4s Tie enorn,o,
nuount Of our foreign debt renders Amer
,eu, bouds n@cu};a,ly sensitive, to auy d,
1nand fr,n, .,a.r o,nutr7es fur the can't,
now invested in them.
VI, ,rnv nssnue ,b.rnf,rc tha, ,he IN
,,f .,,.-,'.,n .1c,,r;t,au fr,,,, ~ T., - ,,J.
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,+ * ~, ;,,,o, ~ tba cor-.o ~.
,..,,,, n,,e4 r,,,,.;n,,o ~ +,l.o = =,
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