The Washington herald., 1914-03-08

il more bonds. are forthcoming further
concessions Will be necessary.
The Boer war not only hurt consols
but all English securities, and its in
fluence extended to --merican securities
and those of other countries as well.
The effect of his war was scarcely
worked off before the Russian-J apanese
war brought out a billion or so more Of
bonds for ec - Of the contestants. The
French and German markets took most
of the Russian bonds and the English
ard American markets took most of the
japanese issues OF course, all markets
We're more or less affected.
On the other hand, there Is a tradition
that war raises the price OF commodities
and in that way has stimulating effect
upon business There are certain obvious
effects of this kind. There is undoubted-
ly a taking up of the slack so far as en-
pioyment goes. In almost any ordinary
times there are more or less people out
OF employment, and the recruiting of
armies gives new employment to a large
number of zen. The Quitting Of the
recruits. the movement OF the troops,
the establishment of camps and the Incl.
dental expenditures of the soldiers sets
considerable loose money in circulation.
depending. of course, upon the size of
the armies.
-Not
Popular opinion on the subject of war
is influenced by recollections of condi-
tions during the civil war, but a war
between the United States and Mexico
would be an insignificant affair compared
with the civil .:ar. In 1851 and the four
years following. a very important per-
centage of able-bodied men in the United
States were withdrawn from the farms
and the shops and transported to the field
Of battle. OF course, that in itself would
have an important influence on prices.
But another important influence was the
depreciation of the paper money, which
caused a rise of prices and had a very
stimulating effect upon business People
always think they are getting rich when
they see their pro- It's and real property
quoted from mouth to mouth at advanc-
ing prices and though subsequent events
may disabuse their minds. the tradition
of the boom remains. The average per-
son would rather make $40 a day for
given time and save 81 than make s.
Gay and save two.
The war in the Balkan states had a
very serious effect upon security markets
in Europe and upon industry all over the
world. Few understood how serious the
have been in the United States
There is very good authority for the
statement that the selling of American
securities by European holders during
the last year or eighteen months has
had fully as much to do with declining
prices as home influences. The influence
Of the Balkan war was greatly en-
however. by apprehensions that
1t might bring on a general European
conflict.
Difficulty of Financing.
Compared with these wars one between
the United States and Mexico would
occasion small disturbance 1t Ia not
likely that the armies would be anything
like as large as even those Of the Balkan
war. 1t is exceedingly difficult to see
how Mexico could raise money to carry
on any orderly and protracted campaign
II she were able TO make foreign loan,
how could she get either money or sup
plies into Mexico? Every port would be
and shipments by any possible
port intercepted. The United States could