The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1877-04-26
The Effects OF the War In Europe.

| New 1OTk lIiDuuC.
War in Europe does not mean IN
limited prosperity in America When
the war drums throb. anywhere in the
civilized world, sou" share of the suffer.
ing and loss must tsl sooner or later tc
every nation. Modern finance and
modern commerce have bound all ma.
tions together with ties that cannot be
seen but cannot he broken, and the true
| interest of each has become the best inte-
rest OF all. Jay Cooke could not fail al
| New York without causing starvation in
many an English towl and the Sublime
Porte cannot send devout Mussulmans
to be food for Russian cannon without
| bringing disaster, near or remote, TO pious
Christians in Maine or California.
1t is very much the habit to take it for
granted that war IN Europe will be a
great blessing to this country. War be,
| tween civilized nations needs to sustain
it grain and gold as well as blood and
iron, and the immediate demand for the
support OF mbstants, in food, clothing
and munitions of war. will not be Incon-
| siderable. But the main and obvious fact
is that ports from which about $4,000, 900
bushels OF grain are annually sent
to supply European demands will
be closed by struggle be
tween Russia and Turkey. The num-
Der of consumers will be unchanged; the
number Of producers will be greatly di.
minished. Grain, meat, clothing, weap.
ons, munitions, and many manufactured
articles will be purchased in this country
in much larger quantities because OF
the war. Already cargoes are dispatched
by telegrsphic order; already factories
open their doors, and the prices OF our
chief products FOR export advance. But
the medal has two faces. We are GER.
tain to ship larger quantities of products
al higher prices, and in the exchange of
nations these products are as good as
gold, and yet the premium on gold in
American markets rises swiftly.
1t is not possible as yet to measure the
financial disturbance which war in
Europe will cause. 1t. Is easy to see
why gold temporarily rises and United
States bonds fall, but not as easy to see
why the former effect should be only
temporary, as many expect, if the war
lasts. Men say, "War creates extrsor-
binary opportunities fer employment Of
money; disturbance in money markets
also creates extraordinary demand; and
men sell what they can sell at least
loss in order to realize the
money needed" Turkish and Russian
securities have become nearly un-
salsble, and decidedly not good collster-
a. for loans; new demands for money
spring up on every side; and the people
who want to realize in order To employ
money at better profit, or who must
realize in order to protect Themselves,
L United States stocks because these sell
.ickly and at small sacrifice. This
reasoning undoubtedly applies to some
transactions. But the slight decline in
United States bonds Is by no means
commensurate with the rapid rise in gold.
The truth is that something else is coming
to this side much more largely than the
bonded debt of the nation.
II does not seem probable that very
large transfers of government bonds will
be made 10 tins country. There are q
great many sellers, no doubt, in every
foreign market, but there are also q
great many buyers, and the more be-
cause European securities are depressed
and the future of European nations is
clouded with doubt. Unhsppily, we owe
to Europe very large sums which are
not represented by government bonds.
Our State and county and municipal
bonds, our corporate securities, and es-
pecialiy our railway bonds and stocks
are held there to an ouorm0uss amount.
c, hhdence in such securities has
been terribly shaken by recent events.
When thousands of former holders wish
to realize on the securities, there will
be found, as in the case OF government
bonds, other thousands anxious TO in
vest. A great exodus of American securi-
ties OF the less satisfactory kind is likely
TO be- an immediate effect of the war,
and if the struggle is prolonged, and
involves great exhaustion of European
capital or the borrowing OF sums at high
rates by European governments, tins
shipment OF securities to America seems
likely to continue.
luasmuch MS we owe nearly o. quite
S2OO0,OOO,0OO abroad, in the form OF
bonded debt, the credit of corporations
and municipalities not known to be
strong is likely to be severely tested.
Not a few rail ways, which have strug.
gled until now against bad management
or adverse late, will be forced to surren-
der at discretion long before the Turks
lay down their arms. Stocks OF all kinds,
m!uing, railway and manufacture
ing, are also largely held abroad,
and in many cases are likely to come
back. 1t is unfortunate for US that this
disturbance in Europe so closely follows
events winch have impaired confidence
in the management 9! many American
corporations and municipalities. But We
must face facts rs they are, and it seems
probable that. for some time to come, a
large share Of our exported grain and
produce will go to pay for bonds and
stocks returned TO his country.