The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-03-06
INTERNATIONAL
FINANCIAL RELATIONS.
New York Post.

New York Post.
The great number o: failures Of banking firms
in Berlin. Paris. Vienna. Lyons and other Euro
pean cities which have been reported by cable
durinr; the last two weeks created considerable
disturbance in Wall street, especially when the
figures of liabilities for one mouse alone were
placed at 100000.
Inquiry among German banking houses with
international connections. however. brought out
was exaggerated, except in that it showed that
the uncertainties of war are still dangerous to
the financial and commodity markets various
statements about the world having changed in
this respect to the contrary Notwithstanding.
Wall street. indeed, feared that these failures
might seriously affect those American securi-
ties which largely held abroad. According to
American shares did suffer on this account
One OF the bankers explained the relation be-
tween the financial centers of the two countries
Every year as the interests OF the various
countries broaden and their commerce reaches
out the financial relations between the various
countries grow more intimate and also more in
tricate. In the days when we had no cables and
bad news Travelled slowly, there was less i'm
portance attached to failures abroad. Nowadays.
however, the world is one great village and
trouble in section is generally reflected in
every other section.
Nowadays Europe holds large amounts of
American securities. Many Of them were bought
at comparatively low prices. though, perhaps
not as low as they now. These securities
panic such as was seen on the Paris Bourse
last week. So far we have been able TO find
out the firms that failed were heavily inter
ested in Russian securities. These Russian bonds
declined heavily and probably would have de-
clned still more il a great many firms had not
preferred TO withhold them from a market which
was unwilling to take them except at startling
concessions Instead they sold other securities in
order to realize cash wherewith to protect COM
Initments elsewhere. In this. way We're sold
Kaffirs. French rentes. consois American rail-
way shares. and other securities. OF course.
they were sold wherever the markets seemed 10
offer the best opportunities There was probably
some selling here for the firms which failed, or
were about 10 fail, and cur market felt IT, The
effect. however. was not great peo-
ar,tnH ia n he nf
IL the houses had been great international houses
they WOULD probably have had a demoralizing
erect on our market did the Barring failure
in 1900. AZ IL their effect sentimental
largely. and. therefore. more noticed in the
commodity market. especially i'm the cotton mar
ket. where specula ton centers at this time.
Il can remember no failure this side which
created even ripple in foreign financial mar
kets This is because we hold foreign securi-
ties to speak OF in this country. OF course there
are in Wall street "A dozen 20 houses with
large foreign connections. the failure OF any one
OF which would probably a mild panic In
European centers. but outside Of these failures
in this city would have no effect on European
markets.