The Washington times., 1914-08-02
IN LOCAL FINANCIAL CIRCLES

Threatened with a war of proportions
never before witnessed and scarcely
now comprehensive. the worlds fin-
ances are in a condition more panicky
than history has ever recorded. Prac-
tically every great security and staple
market of the universe has closed It's
doors to preclude the further crumbllnS
of prices and the entailment OF untold
failures; extraordinary measures Tor
tSe provision of additional circulation
hsre already been taken by this GoN-
ernment, England is contemplating the
suspension of its bank act for the hrst
time since black Friday" in lS65' and
already the foreign countries invo!Ned
in the menacing war are husoandlng
their food stuffs through stringent en-
bargoes on expectation.
The United States showed through the
manner in which its market ABSORBED
for weeks the huge blocks of stocks
dumped upon them by foreign investors
that the financial condition of the ma
ton is most sound The question now
being asked on all sides is what will
be the effect reflected upon the well
fare, political and commercial. of
America by universal European strife.
Many foresee naught but eventual
profits of large proportions which they
believe will result through the creation
of this country into vast market from
which the belligerent nations will draw
the supplies, curtailed in their own
lands by the turning of their workers
from peaceful pursuits to I'LL the ranks
in their armies.
Storing Bumper Crop.
America is now storing in its grana-
Los a wheat crop of bumper size; its
corn fields promise large yield, while
other food stuffs are in proportionate
abundance. Never before was the
United States in better position to feed
the vast forces which are daily cx-
Dected TO pit themselves against each
ether on the fields of Europe. The
Sreat factories. for months operated on
curtailed time and force, could quickly
man their machines and turn out great
stocks of clothing and other supplies.
There is, however, one great milestone
about the nations neck which may pre-
vent the grasping of this apple of prom
Use. The United States has no ships in
which to carry its bounty to the mar
llets that war would open to it. The
American merchant marine, practically
Swept from the seas that ii once dcmi-
mated at the time of the civil war. has
never been replaced. Subsidies have
not been countenanced, and the prohibi-
ton against the registry of foreign ships
has resulted in practically eliminating
the flag from the high seas
1t was a realization of this state of
affairs that caused wheat, soaring ITO
prices seldom before recorded, to drop
With precipitancy. The great wheat
operators asked how the cereal could
he exported, and there was a quick re-
alization of the impossibi!ity of market
ing in bottoms flying the flags of en-
broiled nations.
The same reason was responsible in
large measure for the break in cotton
prices Friday of proportions which have
Followed the failure on another Friday
in 1904 when the firm of Daniel ]. Sully
& Co. suspended business.
Shaking Their Heads.
American financiers, enthusiastic in
the first blush, are now shaising their
heads with concern. A caimer survey
of the situation has left the impression
that the difficulty OF marketing sup
plies, coupled with the uncertainty of
what may constitute contraband OF war,
win probably preclude the reaping by
this nation of gigantic profits during
the state of war. All realize that strife
Of the proportions now contemplated
would devastate Europe, and leave the
powers of that country in state ap-
1roaching destitution. These nations
are Americas natural markets, but
hese markets would be bankrupt
The war clouds have been gathering