The Anaconda standard. [volume] (Anaconda, Mont.) 1889-1970, 1899-10-17
Effect of War With the Beers.

War between England and the Trans
Naal republic is now a certainty. The
effect which the conflict will
Naye upon the finances and
general industries of the world is not so
clear. There can, however, be no posi-
kple doubt that it will have some effect
land that it will be serious one.
The fact is well known that financial
considerations have entered very large
,,sy into the calculations of the English
1government in all of it's dealings with
sthe pugnacious little republic. When
I'VE remember that the entire Boer pop
hrlation is probably not in excess of $780,
900, with a fighting strength Of, say
80, 600 men, this seems a little singular.
One would scarcely imagine from the
statement Of these figures that a war
between England and the Transvaal
would create ripple upon the surface
of the worlds business.
But war with the Beers would be
ia far more serious affair than their nu-
anerical strength would suggest. In the
first place, England must transport her
troops several thousand miles by water,
and to send. fifty thousand men, force
that is conceded to be necessary, would
/. be an undertaking of no small dimen-
sions 1t would involve an immense
expenditure of money, and the transfer
of millions Of dollars in gold to South
Africa.
Gold is subject upon which London
is, under existing conditions, super
sensitive. That great money center has
literally none to spare. Only recently
the Bank Of England's rate was raised
to four and a half per cent in order to
check gold exports and protect the re-
serve. And the other great European
capitals are no better off in that respect,
for when the English rate was raised
to four and a half, the Bank Of Ger
many Immediately advanced it's rate to
six per cent.
That war with the Transvaal will
postpone indefinitely the attempt to
force the gold standard into India is
conceded. 1t has long been the opinion
of the leading English financiers that
even under the most peaceful condi-
lions London would be greatly dis
tressed if required to furnish gold for
the East Indian experiment, the
amount of which is estimated all the
way from one hundred million to five
hundred million dollars.
But this is not the worst feature of
the situation. South Africa now pro-
duces. as we have heretofore stated.
about one-third of the worlds total sup
ply of new gold. AS long as the con-
fiict lasts that will be absolutely shut
off. Nearly all of this now goes, in the
first instance, to London, and that city
will feel the initial pressure. But it
will not be for long. As the worlds
great creditor she will promptly trans
fer the pressure to others, and every
country indebted to England will feel
1t with greater or less severity.
The effect will be to withdraw money
from many industrial enterprises TO
meet the English demand. A fall Of
prices and a check to business activity
will, in all probability, follow. If so, the
mining industry can scarcely expect to
entirely escape. The hope is that the
war will not be of long duration, and
that the Beers will not carry out their
Threat of damaging the mines. Should
they do so, the effect might be felt for
Several years to come. So large a pro-
portion of the worlds business is done
upon credit, and SO much gold is con-
sumed in the arts, that to shut off one
third of the new supply even for one
year might be attended by evil conse-
uuences Of great magnitude. But we
will not borrow too much trouble.