New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1877-04-26
FINANCIAL ASPECTS or THE WAR

A remarkable event has occurred. Two ma
tons, both strictly bankrupt, have commenced
n war in which failure of credit must bring
defeat to either. Turkey, in chronic and hope
less bankruptcy, after prolonged ana eX-
traordDarv effort recently succeeded in rails
ing only So, 900, 900 from It's subjects. Rus
sia. according to the statement of a st. Pc
tersburg journal telegraphed on Saturday,
must choose between foreign loan to be ef-
fected, if at all, at probable loss OF forty
per cent, and an enormous initiation Of cur
rency already rapidly dcpreciating. From its
nature, the war must be a very costly one.
Turkey has to fortify and guard a frontier of
hundreds of miles in Europe, to protect
itself against assault from the rear in Asia,
and to maintain in constant efficiency navy
strong enough to prevent Russian operations
by the Black Sea- Russia, whose naval infcri-
ority on that sea is in enc sense financial
advantage is thereby compelled TO reach
Turkish territory by long and difficult routes,
over which transportation Will be enormously
costly. If Russian credit is the better, where
neither can be called good, the cost of the
war to Russia must be far greater than to
Turkey, fighting with supplies actually at hand
or relatively near. Apparently the struggle is
TO be one of gold and credit rather than Of
blood and iron.
European capitalists have already lest so
heavily IN Turkish bonds that at first it might
seem certain that the Porte would be speedily
overwhelmed in financial seas. But empty
bladdcrs swim long, and confessed and COM
Dlete bankruptcy has its advantages. In every
market of Europe there are powerful lenders
who must bear enormous losses if Turkey fails
but NAV win enormous gains If the Porte can
be sustained until some new turn III the diplO-
matte Kaleidoscope brings intervention Of
other European Powers. The vital fact
in all this business is that 10 other ma
ton in Europe dares to see the Greek
cross at Constantinople. Austria knows
that it would mean the loss OF her eastern
territories and the ACKNOWLEDGMENT of an en-
pire founded upon the enforced submission OF
heterogeneous races. England and France
have buried traditional hostiiities and thrown
away many lives and millions OF money i'll
arYesting the Russian march. Jcal0usic3 tenn
po,arily sienced by the fresh recollection OF
Bulgarian atrocities viii surely revive when
Russia begins to gain ground. All this the keen
captalists of Europe know, and if, by throw
ing good money after bad, and backing the
Turk until the change in European diplomacy
appears, they can hope for vast gains, they
may risk much. Hope of pecuniary gains to
result from ACKNOWLEDGMENT OF the Union,
much more than any sympathy, led British
CAPITALISTS to throw away money III Confede-
rate bonds.
Russia has in its favor the general confidence
of capitalists in its final success. NapoleOn's
prediction that in fifty years Europe might be
"all Cossacll" betrayed presentiment power
full even then, and by no means weakened by
more recent events. The stubb0nness OF Rus
sian troops is known. Modern improvements
have partly removed the great barriers of dis
lance which once separated other nations from
two millions of Obdurate fighting men. The
Russian debt, moreover, was largely incurred
in improvements which add permanently to
the resources of the nation. But that debt
amounts to $1,5OO,O00,O0O the last popular
loan was not successful; and war probably
means for Russia not only great increase