New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1898-04-25
THE SOURCE OF APPREHENSION

Confronting war men are in doubt how to
regulate their business, what volume OF con-
sumption to prepare for, what the tendency OF
prices Is to be, what freedom Of credits IN
trade or with banks Is to be expected. The IN
certainty checks business while 1t lasts, and
the best service one can render the country
lust now IS to remove it as fast as possible.
The effect upon the carrying trade may be
separately considered: it is entirely apart from
the effects which q state Of war may have
upon productive industry or the legitimate
trade by which products seek consumers. 1t Is
worthy Of note at the outset that 1.-THE London
Statist" journal never inclined 10 over-en-
courage anything American, expresses the
Judgment that the industries and internal trade
Of this country can IN no way be seriously
affected by war with Spain. Government
expenditures will stimulate some business
a little, aud a relatively Insignificant number
of men will be withdrawn from production or
business and engaged in military or naval ser
vice. but even there they have to eat and to be
clothed.
These reasonings are on the surface. But for
eign observers may not wholly comprehend the
conditions which affect Industries and business
here. and these may need more careful exam
nation Foremost Of these Is the banking and
credit system which has thus far caused nearly
all the hesitation in business that exists Amer
leans are practical enough TO know that the
subsistence, clothing, housing and transporta-
ton of virtually unchanged number Of peo-
pie will require the same volume Of products
and the same distribution. unless causes not
within reasonable apprehension bring about q
general decrease In the rate of individual con-
sumption. But Americans also practical
enough to know that fright Of bankers and
others upon whom credit depends can produce
PARALYSIS The contraction of loans in order to
fortify against any emergency appears to
many a sign Of coming trouble, against which
they also may we'll take precaution by restrict
ing orders and purchases
The fact is that the banks, not Of this city so
much as Of other quarters, but somewhat gen.
erally throughout the country, have been pro-
viding against the unknown with great excess
of caution They are enormously strong, are
growing stronger every day with receipts from
Europe of gold due for merchandise exported,
and have so far retarded speculative operations
that the volume Of such loans is much lighter
than usual But they have not yet begun. as q
rule to act upon the common-sense law that
the only object of reserve is to prevent diff
Guilty. In some directions they are causing diff
6culty by unnecessary and excessive provision
against 1t. But now that war has begun, and
has not caused the unknown and therefore i'm
measurable disaster which some have dreaded,
the bankers themselves will begin to realize
that they cannot get rich by starving business.
1t will probably soon appear that the apprehen-
sion Of the unknown has vanished, and that all
men, bankers Included, are setting themselves to
do business on a common-sense basis. With a
great surplus of idle money, banks will not
care to confront stockholders long with scanty
dividends nor Will traders who have INSULT
cient stock for customers be willing to see them
20 to the establishment across the street. The
brayest will lead, as usual. when new condi
lions have to be met. and will take Off the
cream of the profits. But it is not within rea-
son probable that nation Of practical business
men will stand idle many hours now that the
actual conflict has come. They did not when a
great civil war produced changes and risks in
eonceivably greater than can now be involved,
and 1t will be of all marves the most mar
Eellous If they wait many days before discover