The New York herald., 1870-08-01
The War in a Financial Point OF View.

A.V vvaH IN - FtuuuCIui va vsS"'
1t is common expression that money con-
stitutes the sinews Of war and this is true,
no doubt, to a great extent. But in these
times, when wars are shortened and more
quickly decided money plays less important
part than formerly The railroads, telegraph
and the other resources and appliances Of
modern science make war in thickly populated
countries, like those Of Europe, short, sharp
and decisive. There nre few great nations
that cannot now raise the means to try the
strength Of their military power: only worn
out or effete nations-those completely
exhausted-that have neither the money nor
credit to wage war AS regards financial
resources, then, there is little difference in the
situation of France and Prussia. Both cOun-
tries have made great progress of late years in
material development, and have large
resources within themselves. Then both the
Germans and French are 80 thoroughly
aroused and enthusiastic that they will contri-
butte, doubtless, to the extent of their means
to carry on the war. Neither Of the belligerent
Powers have yet attempted to negotiate nor
have spoken of a foreign loan, except we may
call the large loan which the Prussan govern
ment is said to have negotiated with the
Rothschids, based on American securities, as
a foreign one Still, should the war continue
longer than is expected, or should il spread over
Europe, the nation having the most money at
its command or the highest credit will have
the advantage. Money, then, will become
really the sinews Of war. We should then see
which is the richest nation and which has the
best credit in the world and, of course, the
credit would depend very much upon the
events of the war. In the long and exhaus-
tive wars waged against the first NapO-
leon the wealth and credit of Eng
land proved most effective. Commerce
and manufactures had made England
the richest country of the world, and she was
able not only to pay her own expenses in that
prolonged and gigantic struggle, but to subsi-
dize her allies as well. Those vast resources,
in fact, more than anything else, destroyed the
power of the great Napoleon. Bat the times
are different now. Such long and exhaust
ing wars are hardly possible in this age. Rail-
roads, the telegraph and improved means of
destruction, must end war much sooner, how
ever widespread it may be.
The strain, however, upon the resources of
France and Prussia in preparing for war on
such stupendous scale will soon be felt
Neither Of them has the means that Eng
land had in the great European war re-
ferred to, nor has now, nor have they
States developed in our civil war. As far
as the existing debt of each of the belligerents
goes, Prussia has great advantage. Her
debt, in round numbers, is about three hun
dred millions, reckoned in American dollars,
while that of France is about two thousand
four hundred millions. The debt Of the former
is small comparatively; that Of the latter is
eight times greater. Yet France is richer in
manufactures and commerce than Germany,
though Germany has made vast progress in
this respect within the last few years and it
must be acknowledged that nation having
this source Of wealth in the high est degree is
in the best position to make or maintain war
The history of England shows this fact Con-
sdering the small debt of Prussia compared
with the large debt and vast expenditures of
France on one hand, and The superior resources
of France on the other it would seem that the
two Powers have little or no advantage over
each other in a financial point Of view. As to
provisions both for carrying on the war and
fnr 4bo he Of ~
each country, Prussia is undoubtedly in the
best condition. There is about two years
stock Of grain husbanded and on hand in Prus-
sia, and she can draw largely, when needed,
from Russia and Poland, while France. has
limited supply and can only obtain more by sea.
AS TO how far the securities of the bellige-
rent nations, as well as of neutral nations,
through sympathy. may decline, the results of
the war can alone determine The sudden and
unexpected declaration of war naturally created
CONSERVATION and rapid fall in securities and
stocks Of all kinds, both in the money markets
of France and Germany and in those of other
nations. The effect has been felt sensibly in
London and other financial centres of Europe,
and even in America. All have declined
through sympathy and from that uneasy feel
ing which arises from uncertainty as to the
consequences and end of such struggle We
hear of failures daily in financial and COM
mercial circles, and these, probably, are but
the first mutterings of the terrible storm that is
destined to sweep over Europe. John Bull is
buttoning up bis breeches pockets against the
evil day The Bank of England has put on
the screws, as it is called, by raising the rate
of discount The Bank of France has sus-
pended gold payments and uses only silver
specie. Everywhere precautionary measures
are taken, for no one knows what the end may
be. United States bonds and stocks abroad
fell rapidly with the rest, but have since re-