The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-08-11
THE WARS EFFECT.

THE WARS EFFECT.
The crisis of the age is on, and the
worst Is probably appreciated" writes
Henry Clews, the New York banker and
economist. in his current weekly imam.
cial review, and in which he presents
an interesting analysis OF the probable
effect of the war on business and fl
nances both in this country and else
where. He continues: THE result
must now be left to the arbitrament
Of arms. Great Britain's entry into the
war will undoubtedly hasten the end;
the sheer i. tensity of the conflict neces-
sarily limiting its duration. For the
time being the worlds commerce is de-
moralixed. On the Continent OF Europe
the losses will be colossal. Hundreds OF
thousands Of precious lives viii be sac
rificed, and billions of capital and prop
|erty destroyed. The horrors that will
have to be endured are too dreadful for
the Imagination. Chaos will rule in Eu-
ropean industry and commerce for pos,
sibly some time to come. The most
that can be reasonably hoped for Is
some great decisive battle in the early
Stages OIL tAS war, OcClSiVc CAOuSA a.
least to open the door for mediation
and thus stop this monstrous struggle;
the saddest blot on ChristendOm in
many generations.
I'm the course of time the present
confusion will partly disappear. The
world is rapidly settling down to war
basis, and many Of the necessary ac-
tivities of life will soon go on much as
usual So far as the United States is
concerned, we are theoretically ADJUST
ing ourselves to the new situation. Our
leading financiers are showing degree
OF Calmness, courage. consideration and
wisdom that is a splendid exhibition of
shouldering responsibilities. accepting
risks and granting accommodations that
are saving this country from panic and
materially alternating the stress abroad.
Whatever the misdeeds of the past, to-
day those who manage our leading fl
nancial institutions are showing a fine
ability and a splendid courage in meet
ing the grave situation. Not only our
financial machinery has been put in
shape to meet almost any contingency,
but important aid has been rendered to
European tankers, relieving them of
considerable OIL CuelI OOASdl1OAS " SAlAo
side. Foreign banks often finance the
moving of some of our crops. cotton for
instance; but in this case by relieving
them We have helped ourselves as well
as Europe. In all departments of busi-
ness there is a growing spirit of CO.
operation, which should be generously
enlarged until the crisis is passed. There
is a universal extension of credit where
needed and where conditions are sound.
The moratorium has been promptly
adopted wherever necessary. The fl
nancial strain on this side has been ma
terially relieved by the issue OF $780,
OOO, 900 of emergency currency under the
Aldrich-Vreeland act, and laws have
been passed making it possible If nee
essary to put into circulation over ST.
700, OO0, 900 of such currency. By COM
mon understanding our bankers have
also agreed to prevent any further inn
portant exports Of gold. The closing of
all of the Exchanges has fortunately
prevented an aggravation OF the crisis
by stopping ill-advised speculation: and
before long there is little doubt but
that the financial situation here Will
have been so strengthened as to allow
the re-opening Of Exchanges through
out the country.
AT the moment the most serious ef-
feet of the war upon ourselves. outside
of financial circles. is the utter demon
alization of foreign commerce and its
handmade, foreign exchange. Our
cotton, our grain and our oil. which
constitute a large portion Of our ex-
ports. are practically blocked. Yet
somehow or other Europe must have
these products, or suffer still more Sc
riously. We need the proceeds of their
sale, or many of our merchants will
doubtless be for the time being more
or less inconvenienced or crippled.
Just now we sorely feel the need Of an
American merchant marine, which we
might have had on hand but for the
many ill-advised restrictions upon
operation which still remain. Some
relief may be obtained by placing our
| coasting vessels in the transatlantic
trade, or by raising the American flag
upon many American ships now Oper-
ating under foreign flags. The most
probable solution, however, will come
when Britain shows her sea power by
keeping the lines of international COM
merce comparatively free of hostile
cruisers. This she will doubtless do
eventually.
| 1T may be some time before our
foreign trade, aggregating about
$4,000. 100000 a year. will resume its
accustomed sway. Meantime our
farmers and our railroads must be pre-
pared for delayed export trade. The
products held back now, however, will
be in great demand later on at I'M
questionably high prices. One sorry
result of the war will be the world
wide advance in food products, which