New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1912-11-18

NO man, no community no nation can
afford to buy and consume more than
il produces for sale and sells. one OF
the two things we must do-either stop
wearing so many silks and drinking
freely such capital wines, or we must
produce them at home, or produce a
great deal more withal to pay for them.
And we do not believe the producing
great deal more of our present staples
is a practicable alternative"
Our country to-day, however, Is
fundamentally strong, and our system
OF credits is so well balanced that with
the period as it is after several years
of liquidation no danger signals seem
to be flying. We can have checking
| business, however, and We can have
depression in the stock market, both or
which are not deserved, and it is hoped
may not follow. The future Of the
Balkan States is one which not only In
terests all Europe, but all the civilized
world, as their entering on an era
of practical independence will offer
economic changes which will be felt
everywhere in the civilized world. In
the past the commerce of Bulgaria
! Greece, Serda and Montenegro has
been Of little Importance, but with
new regime and the opening Of oppor-
tunities which heretofore have been
held in check there should be a
rapid development of resources and In
crease in commercial Importance. The
refinancing Of the country will bring
into the security markets Of Europe,
particularly on the Continent, new
line Of investments. This is picture OF
encouragement, provided all goes we'll
with the settlement Of the controversies
which have arisen and which may arise
in the final territorial division and as
signment of rights among the Balkans
and the important European powers.
I A translation in THE Market World
and Commerce" Of an article by Ed
mond Thery, published in ''LEcouomist
Europeen," contains a most intelligent
review OF the economic and financial
consequences for Europe Of the Balkan
War. One paragraph here published
sums up the situation as regards the
financial consequences If European
war should follow:
In the ordinary times the organism per
forms its function marYellOusly well, be-
cause money CirculateS infinitely raster
than the Instruments that represent II
"A
money makes possible the eNeCtuat.On IN
a single day of settlements ten, fifteen or
twenty times greater IN amount than It's
intrinsic value, taken by itself. But just
as soon as there comes about some Sc
TlOuS anxiety OF political kind, ana
particularly in the field OF international
politics. money decrSases its rapidlty of
circulation, for the reason that those who
have it In their possession at the mo
mcnt when the anxiety arises have
very natural tendency TO hold on to IL
for their own benefit and to conserve II
through fear Of what tomorrow may
bring forth. So, II account be taken OF
the fact Vat against the IJOVpUJoW
francs Of securities that Europe owns and
against the 50C0),OyOOyO to 6DOp.OpOJJ
francs of bankuOtes checks and CONNER
Cial documents In circulation there exists
In all the European countries together
only 50, 900 zoe 90 20 40OD0OO),0g0 francs OF
real money, and that a third Of this II
locked up in the treasures OF the states
and in the banks Of Issue, IL is easy 20
comprehend the immensely OF the catas-
trOphe which war breaking out between
the great European nations would pro-
duce for the public credit OF these nations.
II does not seem reasonable that an
impetuous desire for individual prefer
ment in the settlement OF the Balkan
question will involve Europe in dis
astrous war.