The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1904-04-08

vsal between IS9s and 1902. indicate that even
smaller war Of that character cannot be fought
fully a million dollars daily. French statisti-
clans have lately reckOned that a conflict in Eu-
rope between two frst-class continental powers
would cost each Of them in the neighborhood or
So.oO0ege day. These estimates may or may not
De exaggerated but they show what financial re-
quirements may be involved in such a conflict
Now no government possesses a fund OF money
SUFFICIENT 10 wage such war for any long peri
cd, nor is il possible for any government TO IN
troduce new taxes such ; would raise from its
people the sum required. Hence IL must have
course to the accumulated capital OF the worlds
money market In the Of the japanese war
Of 1894 with China which lasted only seven
months, all the money raised at home
through loans through increased taxes. But in
the Boer war England had 10 borrow $500 600. 900:
and the strain OF these loans. with that OF the
increased taxes which accompanied them was
Iish capital At least two OF the British war
loans were placed in large measure, on other
markets such as Paris and New York: and even
where this expedient was not followed. the Eng
vested in the new bonds had to be replaced on
that open market by French and American CAPT.
tal have some limit II follows that such sudden
and enormous demands will necessitate with
dTawal OF invested capital from its previous To-
cation
Negotiations for the consolidation Of the Ten
nessee Coal and Iron Company. the sloss Shelf
field Steel and Iron Company and the Republic
Iron and Steel Company have been quietly under
way for some time. and promise 70 result quite
soon in an important deal. The Tennessee Coal
and IRON Company has $23. QUO 0o0 stock and
funded debt OF So. COS 900 The Republic Iron and
steel has $4,000 600 preferred stock and 800 coo
common stock. The SlOss Sheffield Steel and Iron
Company has S7.500C00 common stock and So
10000 preferred and a funded debt of 100000
company more conservatively than the United
States Steel Corporation capitalized. The
said to be to combine the company formed
from these three companies with the United
States Steel Corporation.
Concerning the government bond marke; Fisk
& Robinson's monthly bulletin says: The OFF,
cial call issued TO national baI.ks by the secre
tary of the treasury on fIarch g. requiring the
payment to the government, March %. of &c
per cent or the public moneys on deposit IN
such banks, had no app eciabe effect the
market for government bonds. Undoubtedly a
large amount of the bonds released through the
paying off Of pubic deposits is being withheld
from the market for the present and a consid-
cradle amount is being loaded temporarily in the
expectation that later higher market VIII de-
velop This has resulted in only moderate
amount Ct bonds coming into the market during
the month. On the other hand. the buying by
national banks has been on very moderate
round lots are inclined TO await an opportunity
10 purchase when bonds are issued in connection
with the construction of the Panama canal. even
though it may be necessary to wait twelve or
fifteen months for that opportunity. We believe.
on the part of banks should the market recede'
say. 10 l0i, and possibly at lO4l2 We see nothing
in the situation TO warrant the expectation that
future. unless the secretary should ht to call
the return of an additional 10 per cent. of gov
eminent deposits.
The gold exports this year, previous TO the gold
taken In yesterdays steamer to Europe. Were
also for European account. were made profit
able by the arbitration of the exchanges be-
tween Europe the United States and Argen-
tina. But the amount of gold that can be sent 10
Argentina from New York under such condf-
tions is relatively small, and it is probable that
the limit has already very nearly been isached.
On the other hand. the amoLnt of gold which
may be sent to Paris at this time under the
circumstances. measured by the needs OF Paris
and by ability to part with the metal for a
consideration. and without embarrassment. Is
large. This is said without reference TO the Pan
anna payments. which may be postponed by liti-
cation before the French courts for much long
or time tnan has been anticipated The needs or
Paris will be manifested from time TO time by
the quotations of sterling checks. Our ability to
part with the gold is demonstrated by the enor-
nous surplus of the associated banks and by
the weekly reports of the receipts of new gold
three months also we shall begin to receive our
annual contribution OF gold from the Klondke.
well from our mines and placers in Alaska.
No estimate can be made of the amount of gold
that w)ud have to be exported in order to adj
vance the rate for call money in New York to
per cent Such an advance would come earlier
from increase in the demand for money than
from decrease in the supply. In the present
temper of the market gold exports would be con-
sidered a bear argument and might decrease the
securities. In that case there would not be much
change from the present rates for money after
the export of say fifteen twenty millions of
goid.-Wall-street Journal.
London Statist: The chief of the in
creased demand for money in Paris just now is
that preparations being made for the city OF
Paris loan. which will be issued in the middle
OF this month. The city wants l00 600, 600 francs
or s2QCOOO0), for gas. and 11O.OOO.OO0 francs, or
S34. 600 600 for the purchase of the Metropolitan
Railway-together, s54. O00 000 Somewhat later
the date not yet fxed-the department of the
Seine Will raise 100000; so that there is in
prospect at no distant date total loans for Paris
and the department of the Seine amounting 10
very rearly E19.000.O0G Other municipalities and
departments. doubt will borrow likewise; and
in the distant future there % the certainty
of great loans to Russia. The loans to Russia and
to other departments and municipalities. which
are not yet arranged for, of course, al
the moment influencing the Paris market But
the corning city of Paris loan unquestionably is
And to this is mainly due the fact that there
has been a good demand for gold for Paris re-
Gently. Were IL not for these coming loans the
Paris market would be exceedingly quiet. for the
Boursc has not recovered from the effects of the
restrictions imposed upon speculative dealings. tc
which Ne referred last week, and trade is very
| quiet. In every direction there is utter alb
sence of all kinds of enterprise. Naturally. there
| fore the money market would be very easy were
IL not for the coming Paris loan.