New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-05-11
THE WAR OF FINANCE.

War is coming, and in fact has already begun.
Not war between the United States and Great
Britain, or Italy, or Chill, or any other Power.
Not as yet war in the sense of bloOdshed. but a
kind of war which sometimes suffces to parayze
the strongest armies. For in modern times war
is a matter Of money. Neither forces nor fleets
can be raised equipped, moved or fed without
cash. A nation with a mighty army ready and
eager for battle can sometimes be absolutely tied
hand and foot so that it does not dare to move
battalion or fire a shot, by financial reveTes,
which strip it of power to raise money. More
than once shrewd European financiers have
locked up an entire hostile army, and suppressed
long premeditated war, by vigorous operations
in the money market, and the bloOdless victories
so gained, if they bring to victors no laurel
crowns or heroes monuments, are not the less
honorable or bcneficent.
The hostile forces in Europe at present are
not clearly defined, because it does not yet up
pear for whom the RothschildS are acting or
what they are doing Russia has a powerful
army, and has been concentrating it on the
western frontier. That Power has prepared
great reserves of money, by placing eight sue
cessive loans in England and elsewhere within
the last two years, and is supposed to have had
short time ago the power of withdrawing $780,
600, 900 in gold from the banks of England,
France and Germany, where it was deposited on
call or short time, the Rothschilds being sup
posed TO have held about 60,000,000. To
what extent that house has really disagreed with
the Russian Government, because of Jewish per-
secution or because of threatened war, can only
be coniectured. But Russia has been withdraw
ing large sums of gold from the markets of West
ern Europe, and many fnanciers have been saw
agey attacking Russian credit
A war with arms and fleets, between Russia
and any other nation or nations of Europe, would
greatly stimulate the demand for many Ameri-
can products. But in the preliminary war of
finance, this country has to bear most of the
blows without any share in the quarrel. The
oontendng forces want gold and get it largely
from the United States, being enabled to do so
because great amounts of American securities are
held abroad. When foreign investors see at
tractve opportunities of invest ment or of specu-
lation close at hand or find that events are likely
to depress the United States markets, they are
tempted to sell, especially when sorey pressed by
monetary stringency at home At such time
it is not the amount of balances that may be
due from this country to foreigners that deter
mines the sum which can be drawn from the
United States, but the amount of American Sc
curites which foreigners hold and can be In
| duced to sell.
| 1t is stated that a week ago Russia still held
| S95 900, 600 subje1- to draft and has been and
| is still Withdrawing money from Western mar
kets rapidly. The refusal of the Rothschilds to
90 on with the Russian loan is by some inter-
preted as protest against Jewish expulsion from
Russia, but by others as evidence that the firm
believes Russian Withdrawals are in preparation
for war. Whether for one reason or the other
Russia may call from Western Europe as much
as it chooses of the balances there remaining
though such Withdrawals might render Russian
securities for time unstable. But panic in
the markets of Europe would perhaps even more
seriously cripple possible antagonists, and so
place Russia in position to attain its ends with
less sacrifice. If there is to be any struggle in
Europe, all the nations will be more or less en-
barrassed by short wheat crops and the neces-
sty of importing grain more largely than usual.
Large supplies of meat will also be drawn from
this country in that event, and of arms and am
munition and many manufactured articles. At
the same time the productive forces of Europe
| would be lessened, and more fully employed in
| meeting European demands, so that the COM
petition which affects American trade unfavor-
ably would be lesSened. Thus great war in
Europe would be worth to this country many
millions, in one sense, and it could draw gold
at will from European nations for the products
they would be obliged to buy But even in that
case, if the United States should take pains to
force into circulation superabundance of silver
paper fer all domestic needs, holding its gold
lightly TO answer the calls of Europe. struggle
might end in putting this country on silver
basis Its position is stronger and safer than
that of any other nation, but not safe enough or