The San Francisco call., 1898-04-30
OUR FINE CREDIT.
THE WAR SEEMS TO HAVE NO EFFECT
 WHATEVER UPON IT.

THE WAR SEEMS TO HAVE NO EFFECT
 WHATEVER UPON IT.
 The New York circular of Henry Clews says: ''The absence of panic sensation in the very presence of war is something remarkable and has rarely been witnessed in the world 8 money markets under the influence of like con- ditions. Such catastrophes invariably at tended with panic the Courses and violent fluctuations in the money markets, which ex- tend to other countries than those directly concerned in the hostilities. In case, we have stood peculiarly exposed to suffer from effects of this nature. We are probably the most largely debtor nation in the world. Eng land, Germany Holland and France hold. ac- cording to common estimate. fully s2. GOO GOO 900 of our investments. These creditors have re- gently had their confidence severely tested by the late silver agitation; and 1t might be ex- pected that those fears would be acutely re- vived by the financial strain to which this war may subject the country. That such appre- tensions would cause more or less important return of corporate securities from Europe was naturally to be expected, and. in fact. has been looked for. But no such movement has ap- peared to any appreciable extent. The foreign organs of financial opinion. which at times have had much to say about the possibility of our drifting upon the silver basis have had nothing to suggest about that danger heinz in creased by the contingencies of war finance: American securities have held their by the side of the issues of other countries, while Spanish 4s have declined 30 points. and the amount of stocks and bonds returned to our home market has not been at all abnormal in
 
 able in view of the fact that the floating in debtedness of Europe to the United States is so altogether extraordinary to furnish a strong motive for influencing the return of our se curities in order to avert shipments of gold Within a few weeks about s65. 900. 900 of gold have been sent I..,-er in settlement of trade balances, and a balance of not less than s30. Oeo e00 still remains to be liquidated. Under ordinary conditions, such a state of the eX- changes would have caused large sums of our securities to be sent home but no such move ment of any moment has occurred. This fact car be accounted for only upon the supposition that the foreign holders of these investments feel satisfied that, at present prices they are sound and safe. even in the prospect of the certainties of This tacit verdict expresses The opinion of the banking and investment in- terests of Europe upon the effect the war is likely 10 have on the commercial and financial stability of this country. It would not have been surprising had our foreign creditors deemed it a wise course to sell their holdings Of our securities in anticipation of the war with view of buying them back after the pressure of the struggle had worked its full effect upon them; and the fact that they have not done so can only be regarded as implying confidence not only in the future value of these investments. but also In our being able to sus- tain the burdens of hostilites without serious consequences. and in our being able to bring the struggle to an early and successful issue"