The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-01-04
WAR IN EAST WILL NOT
|NJURE MONEY MARKET
AND WILL HELP TRADE
City Bankers Say Contest VIII
Increase Conservatism Among
FinancierS, Assuring Safety.
NO CAUSE FOR ALARM
Only Danger Would Be an Ad-
verse Effect on Our Nearest
Financial Neighbor, England.
STIMULUS TO TRADE
Prominent Local DivineS Consider
Moral and Humanitarian Phase
of the Trouble.
10 CAUSE FOR ALARM
STIMULUS TO TRADE
"a war between Russia and Japan will

"a war between Russia and Japan will
be all for good. Respectfully yours,
"STOUGHTON ]. FLETCHER"
This signed statement by the president OF
the Fletcher National Bank, given to the
Journal last night marks the general tenor
of the opinions expressed by several bank
ers and brokers of the city with regard to
the possible effect on American trade and
securities of the impending struggle between
the great Slavic nation and its dimunitive
but bitter enemy of the Eastern seas.
Major William ]. Richards, president of
the Union National Bank, had the follow
ing to say to the Journal on the question: II
don't see why foreign war should ad-
Versely affect the American money market.
since II would make an increased demand
for American products, unless it should ad-
versely affect our closest financial neighbor,
England. And even with England the ill
effect would be minmized by the fact that
the balance OF trade is in our favor there,
and that England does not hold an alarm
ing volume of American securities that
could be called. OF course all realize the
common disaster that such a war as the
one threatened would bring to the nations,
because we are so intertwined and inter
dependent financially. More or less gloom
would be felt upon the declaration of war
and the beginning of hostilities, especially
as no one could foretell where the trouble
might end or whether we might not our
selves be in some way involved"
DEPRESSING IN EFFECT.
1.-THE very possibility of the case, there
fore. would be depressing in its effect, and
would possibly increase the sense of eau
ton and conservatism that has so wisely
taken possession of our financiers and the
general business public. This latter con-
sideration, 1 think, constitutes our safety
and affords confidence, not only locally but
generally, in our gradual descent from the
high tide of prosperity that we have been
riding to a more healthy level don't see
how we can take alarm in Indianapolis and
Indiana and in the country at large so long
as the produce of the farm is so abundant
and prices good and so long as there is
not overproduction in our industrials, not
withstanding the measure of over-trading
and over-capitaliZation that has been in
dulged in some quarters. | think the su-
perior elasticity of our finances over that of
any other nation is to be illustrated and is
being illustrated in our smooth and easy
transition from the unexampled prosperity
TO which have referred TO the more mod
crate plane of thrift which we all knew
must ensue''
Albert r. Thompson, of the firm Of Albert
r. Thompson * Co., dealers in stocks,
bonds and securities, stated: LAS the mat
ter appears to me now the proposed war
will favOrably affect wheat and provisions
to enormous extent. II may curtail the
amount of money In this country for in
vestment in securities, a considerable
amount of that may be put into foreign
loans asked by one or the other of the com
batants The falling off In the stock mar
ket and the rapid rise in the grain and
provision markets would seem to indicate
a serious situation, as the markets always
before it gets to the public.
English consos had a drop last week.
for the prices of provisions to go way up,
and that will discount any temporary seri-
Gus effects that a curtailment of the amount
of money available for investment in Securi-
ties might otherwise have.
Another broker seen was John f. Wild,
of John F Wild & Co. He said: Even
if war comes 1t will stimulate trade in GER
tain lines, and certainly in the export trade,
but will not, to my mind have any effect
on local stocks. The recent war in Africa
acted as an immense stimulus to foreign
trade but did not depreciate stocks to any
degree. Stocks are now firm, and l expect
that within thirty or sixty days they will
be much firmer."
Z. NJ. Campbell, of E. NJ. Campbell & Co,
said: "The fact must be taken into consid-
Grafton that both Russia and Japan are
laying in supplies in pretty large quanti-
way from Omaha to San Francisco,
anywhere that ii could be easily
freighted to San Francisco, and from
there to Port Arthur. 1t brought from
not be surprised to see ii go to $40 within
sixty days. Japan has been making large
purchases of pork products, and Russia of
beef, the latter buying 100000 pounds in
order. As both Japan and Russia
on friendly terms with this country, | am
inclined to say our attitude would in the
chant who hasn't anything to think of but
the sale OF his wares. All money looks
alike to such man such nation.
STIMULUS TO TRADE.
1.-The threatened war must, it seems TO
me, act as a stimulus OF commercial activ-
ity in this country, not only through the
sale of forage and food products, but
through the sale of the munitions of war
Depression may come among the buyers of
securities, but that will be more of a mat
ter of sentiment than for any real reason
One or the other of the nations at war may
come into the American market for money
and people may sell the securities now held
in order to loan their money out at the
higher rate of interest offered by the nation
asking the loan, leaving the local securities
to be taken care of at home. But such a
shrinkage of values would be only tenn
porary, and they will go way up again. not
only in food products, but in freights and
manufacturing interests affected" A"
John NJ. Shaw, manager of the Kingan
packing house. took a somewhat different
view of the situation. Il don't think" he
said. that war between Russia and Jauan
would make any difference 10 our business
as a packing house does not rely on foreign
wars for the sale of its product. A war might
produce some speculation in food products
and an artificial raise in values, but that
would soon get evened up. a war wouldn't
affect the general law Of supply and de-
mand in this country OF course the mar
ket for horses and mules would be affected
but that has generally to 90 with certain
localities and should not have any effect
on the general situation. A war has never
done our business any good. as we have 10
pay more for the raw material than we can
get for the manufactured product"
M4NTT4RT4NC 4RE ON