The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1914-08-04
THE WARS EFFRCr HERE.

7 THE WARS EFFECT HERE.
It IL the opinion Of Henry C1ews. the
New York banker. a. expressed in his
current weekly financial review. that
the effect Of a general European war
upon the United States will be highly
injurious. Food products would rise. =
writes Mr.. Clews. land the taking OF
hundreds OF thousands of men out of
employment in Europe would mean q
prolonged demand upon our food sup
plies. The scarcity Of labor abroad
would also be reflected here. resulting
In higher wages in some industries and
a general further rise In the cost OF
living. Probably some industries would
benefit py the demand for war ma
terfal. and there would be better de-
mand for our manufactures of steel,
textiles. ETC., to meet the vacancy
caused by the loss Of foreign trade
which Germany and other European
nation would inevitably incur. It Is
folly to :uppose that such wholesale
destruction Of life and property could
be Of benefit to the world at large. The
in the cost Of living. The worlds money
markets would be violently deranged.
and our own would ultimately feel the
strain. Higher interest rates would
surely follow the wholesale destruction
OF capital. and much Of the refinancing
Of the future which has got to be met
would face serious Obstacles. Our for
efsn trade will be demoralixed. The
heavy foreign sales Of securities in this
market were the main cause OF a large
influx Of gold. amounting for the week
to about $4,000. 900 on tho current move
ment. More may be expected to follow,
but this country fortunately has large
supply Of the precious metal, and these
shipments at tho moment need excite
no concern though II continued indefl-
nitely they are sure to induce firmer
rates for money. It IL well known, how
ever, that the Treasury will offer sim
ilar aid to last year for crop moving
purposes; this, Of course, being a very
res ssuring feature. The crop movement
has already begun. and recent events
are likely to hasten the export move
ment Of grain. Wheat has advanced
fully 10 cents and over. which means
phenomenal prosperity to the western
farmers. especially wheat growers. Our
wheat crop IL now estimated at over
0O.0O0, 900 bushels, and as the bulk Of
it Is still In farme-s' hands it follows
that they and not Intermediates will
get the principal advantage from high
prices. Commodities generally are ris-
ing owing TO the prospective interfer-
ence with supplies in event Of war.
Closing Of the Exchange, however,
was wise step. American buyers have
been absorbing European holdings at
very attractive prices, for many Of our
best stocks are now on the bargain
counter. Eventually Europe will re-
purchase these shares, but at & higher
price. 1t is rlany years since Europe
has been SO bare Of American stocks,
ana the present crisis leaves the United
States In an exceptionally strong and
favorable financial. eondition, 70 far a.
concerns its relations with Huropean.
countries.
This market has stood up phenome-
nally well under the nodd Of local and
foreign selling. New York proved itself
the only free market, In the world for
the sales OF our securities and the
Stock Exchange has demonstrated its
usefulness and its ability to; meet a
great crisis to the benefit OF the BUSH
ness community the world over Needy
fcref4n sellers have here found a mar
ket to realize upon their best assets.
Thus panic was prevented in Europe
and 3Ar3n11N Jsxo s~x A
shares restrained by the open market
which New York offered. Hasty mind
ed reformers and Legislators viii do well
to take notice Of this fact. and be
somewhat careful in the future how
they seek to hamper the functions of
an organization 80 necessary to business
welfare and 30 able to-meet a great
cftsis.',.
Mr.. Clews advances the interesting
suggestion that the present European
war Is really the outcome Of the Russo
japan war. and he argues: Before
that. RussiA's great power and prestige
kept in check all Of the European ma
lions. they being overawed. by her i'm
aginary exaggerated greatness. The re-
suit Of the Russo-Japan war UNDER
mined Russfa's prestige to the point Of
humiliation. Of which Emperor william
took advantage to forge ahead, with the
result that Germany finally occupied
Russia's former position AZ the most
important war power IN Europe. All
this. together With the self-adulation Of
Emperor William. aroused the jealousy
Of the Gar. thus bringing about the
present contest. which IL really q strug-
gle for supremacy between these two
men. This shows the danger Of one
man power. No such power should IL,
this twentieth century be permitted to
exist by the people Of any country. I