Marietta daily leader. (Marietta, Ohio) 1895-1906, 1900-01-06
Will the African War Help
American Trader

american RAIDER
That the Boer war must in one wa,
injuriously affect business In the Unit
ed States Is already established. No
only by cutting off an important par
OF the worlds current gold supply. bu
by calling into use for war purposes al
unusual proportion of the accumulated
money stock of Great Britain, the con
fiict operates greatly to increase tn,
value OF money or to decrease the val
ue OF commodities in relation to none,
Capital is forced out Of industrial into
extraordinary military uses, and thl.
brings about a declining tendency in
the prices of securities first and OF
commodities finally.
This process is now going on In
England and of course reacts upon all
commercial nations. Had it begun at
a time of Industrial depression when
prices are low and enterprise is haltlng
and the quantity of floating or uncom-
mitted capital is large, the effect of
war might not be so injurious. 1t
would draw especially upon the float
ing capital of the nation on the
| strength of the government guarantee
of reimbursement and would result
rather in stimulating to increased ac-
tivity the capital already employed in
industry. Such was the effect of the
Spanish war in the United States,
which came on the heels of prolong-
ed industrial depression, and which
did not neither close up an important
source of money supply or call for any
considerable diversion of money to
distant scenes of conflict But the
Boer war comes when an Industrial
revival both here and abroad is at its
height, and when capital is more fully
employed iii profitable industry than
has been the case in years. Its imme-
diate effects must therefore be unduly
to enhance the value of money or de-
press the prices of commodities, de-
moralize industry, and abruptly turn
back the tide of business expansion.
And the United States must necessar-
lily to some extent feel these effects in
common with the rest of the CONNER
cial world.
But it will be asked if there are not
substantial offsets in our own case.
Must not the larger diversion of Brit
lsh capital and labor into a destructive
war operate to increase the demand
upon he United States for provisions,
munitions, and the things which go to
repair property losses from war? A
wide impression prevails in this coun-
try that a European war rebounds
greatly to our advantage, and for the
reasons indicated Where the impress
sion originated we do not know, and |
whether it has any basis in theory we
shall leave now for others to decide. |
But as a matter of experience. it can |
net be said that the industrial benefits |
Of European wars upon the United |
States have been strikingly observable.
Merchandise exports and imports
should afford. some test cf the truth of
The theory, and we will apply it first in
The case of the Crimean war. This
most considerable European conflict
'f the century from the enw of the Ma
)oleoniC wars until the Franco-Prus-
ian war began late in 1853 and end
ID early in 1856, large numbers of
Turks, Russians, English and French
'eing engaged.
1t is important to note that while
Xports increased largely during the
var, the increase for the eight years
'as not more marked than it had been
Or the previous eight years, and that
fter the war exports, after falling
ack in 1858, no doubt from other
auses, rose by 1860 to very high fig
res for that time. 1t must further
lore be noted that imports also in
'eased during the same time and
osely in proportion to the increase in
tports. Thus the demand upon the :
nited States because of war did not
tceed our demands upon the outside
orld. Industrial Europe was not SO
ard pressed but what labor there was E
'le to meet all calls upon it.--Sprlng-
I'D Republican {