Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-07-27
Cables Are Kept Busy.

Probably every international banking
house and every large brokerage concern
in Wall street was in constant cable CON-
munication with Europe yesterday and
last night. clamoling for every possible
scrap of information bearing upon the
situation.
In Wall street activities commenced an
hour earlier today than usual. many
houses having sent for their clerks TO be
on hand, while anxious investors with
careworn faces were hurrying to protect
their margins or take what advantage
they could out of conditions.
The branch offices of brokers in the up
town hotels were also thronged with men
waiting for the opening quotations from
London. The fact that Europe in the last
few days had sold some S2o,OOO.OOo OF
American securities, at the earhest wis
pers of the -Austr;an-Servian trouble was
enough to warn investors what might be
expected if war actually came.
Whether it is the American spirit OF
optimism or accurate inside 1nforma-
ton cabled from abroad, it is fact that
some of the most important fnanciers
felt this morning that a general European
war will be averted.
Power of World Bankers.
They based their opinion largely upon
the proposition that the f1nanciers of the
world cannot afford to permit general
war, as the loss in treasure, in produc-
ton and in human endeavor would, in
their opinion, stagger humanity and set
civilization back.
New York f1nanciers kEow that more
than once the great banking houses OF
v<<1 nnfS hoy
suaded nations from rash outbreaks, by
closing the purse strings. History is re-
plete with such instances.
1t is felt In financial circles here that
the cost OF a conflict between two or
more of the great powers would have to
be shared by all the nations of the earth
in losses incurred, and that the United
States would not be exempt.
The first effects of such a war, as eX-
planned to The star correspondent by a
leading banker this morning. would be
Immediate advance in the cost Of living,
Tightening of money and expectation of
gold.
He pointed out that wheat jumped 3
cents a bushel last Saturday on the first
intimation of trouble, and that every
food product would go up on the outbreak
of hostilities, when all Europe would
withdraw her men from field and farm to
put them in the army.
Gold Is Going Abroad.
Gold has been flowing abroad steadily
for weeks and in large volume last week.
The balance of trade is still against the
United States and must be paid in gold.
The selling of American securities, which
are held in large volume abroad, would
necessarily, this banker said, affect con-
ditions on this side of the water.
But every big brokerage house advised
their customers this morning not to make
sacrifices of their holdings II they could
possibly avoid it. This counsel was the
outcome Of the feeling that, somehow,
war will be averted.
OF course. spectators trading upon a
''shoestring" margin are left to their
own judgment. according to their circum-
stances. but the solid investors will prob
ably not dump their holdings overheard.
In the financial district this morning
there was the usual gathering of specu-
lators looking for "a good thing the
class who always turn out In times OF
threatened misfortune to pick up the
jettisoned financial cargoes.