Omaha daily bee., 1895-12-21
THE FINANCIAL EXPECTS.

Whoever has failed to consider the
probable effect upon financial affairs of
the possibility Of wal between the
United States and Great Britain has
ignored one of the most serious phases
of the very grave issue. This must now
he considered and its dispassionate and
intelligent consideration can hardly fail
to exert great influence in the direction
of averting the threatened conflict.
When the great financial and CONNER
cial interests of the two countries. so in
timately connected, shall have been
heard there can be no doubt that they
will be found united in the demand that
the peace shall not be disturbed and the
governments will be bound to give heed
to the demand.
Already there is furnished n striking,
though by no mean surprising, object
lesson of what is to be expected in the
event of danger of war between the
United States and Great Britain increas-
ing. The message of the president was
not Immediately followed by any very
marked financial effects. 1t did little
more than cause Il feeling of uneasiness
and of itself would probably not have
produced any serious disturbance, but
when 1T was found that congress-. the
war-making power in the government.
was in accord with the president and
prepared to 30 to any length in carrying
out the course he urged, uneasiness de-
veloped into apprehension, how deep
and strong the course of the
stock markets yesterday plainly
~httcsts. American securities were
thrown upon the market IN great vol
ume and the shrinkage in values-in
part speculative, it is true, but hone the
less a loss to lolders-agsregated an
enormous amount. Not only British
holders of American securities, but hold
ars in other parts of Europe, were eager
to unload them. There was practically
Il panic OF the New York Stock ex-
change. Money on call rose to 200 per
cent. There were several failures. Of
brokers who, being unexpectedly
pressed, could not meet their engage
ments. So alarming did the situation
become that a meeting of the cabinet 1T
Washington was hastily called to con-,
slider it.
This state of affairs, produced by the
mere possibility of war, ought to bring
congress and the American people to a
realizing sense of what might be eX-
pected if there should be certainty of
war. That, there can be no doubt,
would bring about one of the severest
panics the country has ever known, un-
settling all values and disturbing all
business. Foreigners would take from
us all the gold they could possibly get
and Il suspension of gold payments
would become inevitable. Thousands of
domestic holders of American securities
would be bankrupted by the shrinkage
in value Of such securities. The cur
rency of the country would depreciate,
causing Il heavy loss to depositOrs in
savings banks. Our foreign
would be disastrously affected by the
cutting off of our greatest customer.
England, thus most seriously damaging
our producers, who would not find COM
pensatiOn for this loss in the home de-
mand, eve though the government were
w DuL Z NNlHI W Ilitii
under arms. 1t is true that British in
vestors in American securities and
American enterprises would lose heay-
lily, but there would be no satisfaction
in this for American losers and it would
also work an injury which it would take
years to recover from.
1t is manifestly desirable that the
American people shall give serious con
sidcration to the financial and CONNER
cial aspects of this issue. We are re-
covering from a prolonged depression
and there is every reason to expect that
with peace maintained the country will
realize within the. neXt year or two n
high degree of prosperity. Every effort
of wise and patriotic craftsmanship
should be employed to avert what would
most certainly prevent the realization of
this most favorable promise.