The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1877-04-22

and the newspapers clamor violently ever the
discovery OF the dangerous and unsafe structure
Of these buildings.
THE EFFECTS OF THE WAR IN
EUROPE.
IN. Y. Ttibune.1
War in Europe does not mean unlim-
| tied prosperity in America. When the
| wardrums throb, anywhere in the civil
| lied world, some share Of the suffering
and loss must fall sooner or later to
every nation. Modern finance and
m odern commerce have bound all ma
tions together with ties that cannot be
seen but cannot be broken, and the true
interest OF each has become the best in
terest of all. Jay Cooke could not fail
ut New York without causing starvation
in many an English town, and the Sub
| lime Porte cannot send devout Mussul-
mans to be food for Russian cannon
without bringing disaster, near or re-
mote, to pious Christians in Maine or
California.
1t is very much the habit to take 1T
for granted that war in Europe will be
q great blessing to this country. War
between civilized nations needs to sus-
tain it grain and gold as we'll as blood
and iron, and the immediate demand
for the support of combatants, in food.
clothing, and munitions OF war, will not
be inconsiderable. But the main and
obvious fact is that ports from which
usually sent to supply European de-
mands will be closed by struggle be-
tween Russia and Turkey. The num-
Der of consumers will be unchang-
ed; the number Of producers
will be greatly diminished. Grain,
meat, clothing, weapons, munitions,
and many manufactured articles will
be purchased from this country in much
larger quantity because of the war.
Already cargoes are dispatched by tele.
graphic order; already factories open
their doors, and the prices of our chief
products for export advance. But the
medal has two faces. We are certain to
ship larger quantities of products at
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.
It is not possible as yet to measure
the financial disturbance which war in
Europe will cause. It is easy to see
why gold temporarily rises and United
States bonds fall, but not as easy to see
why the former effect should pc
only temporary, as many expect, IL the
/ war lasts. Men say, tWar creates ex-
traordinary opportunities for employ
ment of money; disturbance in money
markets also creates extraordinary de-
mand 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-
salable, and decidedly not good
collateral for loans; new demands
for money spring up on every side;
tx< xI<,x k,rx ov,f fr
order to employ money at better profit,
or who must realize in order to protect
themselves, sell United States stocks
because these sell quickly 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.
4 It does not seem probable that very
large transfers OF governments bonds
will be made to this country. There are
|, o great many sellers, no doubt, in every
, foreign market, but there are also O
great many buyers, and the more be.
cause European securities are depressed
and the future Of European nations is
, clouded with doubt. Unhappily, 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
pecially our railway bonds and stocks
are held there to an enormous amount
Confidence in such securities has
been terribly shaken by recent events
When thousands of former holders Wlsf
3 to realize on the securities, there viii
not be found, as in the case of govern
' ment bonds, other thousand anxious Il
3 invest. A great exodus OF American
securities of the less satisfactory kint
: is likely to be an immediate effect o
: the war, and il the struggle Is prolong
; ed, and involves great exhaustion o
l. sums at high rates by European gov
It ernments. this shipment Of securities t.
d America seems likely to continue.
q Inasmuch as we owe nearly or quite
So, ,0GO, ,OOO,0 600 abroad, in the form o
y bonded debt, the credit OF corporation
and municipalities not known to b.
d strong is likely to be severely tested
d Not q few railways. which have strug
!. gled until now against bad Management
Q or adverse fate, will be forced to sur
!. render at discretion long before. tn
1 Turks lay down their arms. Stocks o
: all kinds, mining, railway and manu-
. featuring, are also largely held abroad
u and in many cases are likely to com
back. 1t is unfortunate for US that thi
If disturbance in Europe so closely follow
h events which have impaired confidenc
/ in the management of many America
q corporations and municipalities. Blu
= we must face facts as they are, and
: seems probable that, for some time t
% come, a large share OF our exporte
. grain and produce will go to pay 70
|, bonds and stocks returned to thi
% country.
j,