The Washington herald., 1914-04-22
HIGH COST OF WAR.
Government Probably Would Issue
Short-term Treasury Notes.

I 1hOIl-tCim llCdouiy lNOtCo.
B. C. FORBES. in New York American.
Wars are now fought with money
as much as with guns.
How will Huerta raise funds?
And how will the United States
finance a campaign IL one be embarked
upon?
The Mexican dollar today is worth
only 25 cents Of American money, and.
in case of hostilities. will doubtless
become worth even less Huerta re-
Gently succeeded in floating a sizeabIe
loan in Europe, but il he chooses TO
hghI the United States he will needs
have recourse TO less gentle methods
Of obtaining sinews. However. Mex
leo Is not a poyerty-stricken land. and
IL the people throw themselves whole
heartedIy into the contest, ways and
means will be invented to keep the
treasury going for a time
Were any European power to supply
Huerta with money 40 night the United
States the act would be regarded as
unfriendly to this country. The pros
poets are that no Mexican war loan
could be ioated IN Britain, France, or
Germany.
The United States Treasury contains
no huge sum available for war nor
most people yesterday, sell any huge
amount OF per cent Panama Canal
or special bonds British consols yes
terday sold on a 31-3 per cent income
basis; French 3 per cent government
rentes were below 81. while German
Imperial per cents were quoted at
Il. IL is obvious that investors would
not pay 100 for an unlimited issue of
United States } per cent bonds.
70 sail
OOO. 900 Panama Canal bonds that could
be offered. war funds-if needed-are
more likely to be raised by the issu-
ance of per cent Treasury notes run
ming for one year or less. Money for
temporary tand ultra-safe) purposes Is
so abundant that financial institutions
would eagerly buy short-term Treas
ury notes on a low income basis.
In order to take up these notes. bonds
carving SIs per cent probably would have
TO be authorized by Congress. The ef-
feet Of this upon all outstanding govern
ment obligations may be guessed Yes
terday all our government issues were
trifie weaker.
Wars nowadays are terribly costly.
Even Italy's expedition against the
Turks in North Africa cost about 81
CO., 90 daily, and a real American MeXi-
can war could not but entail a heavier
to a fight-to-a-finish struggle with Mexi-
co. the bill first and last. could easily, I
believe run up to a billion dollars.
Everybody wants TO know what effect
war would have upon American invest
ments and upon American trade. No.
body can foreteIl dogmatically-
Wars. like fires. destroy property. and,
therefore. are not usually aids to securi-
ties Some people argue, however, that
hWr
putting an end to the trying uncertainty
OF the last twelve months. create a spirit
Of relief and start investments on an
upward course. That view was expressed
by several very high financial authori-
ties yesterday.
Unfortunately. 7 cannot share such op-
timism. Having seen something of real
war at close range. I probably am biased
disposed. that is. TO take a pessimistic
view of its effects. My opinion. accord
ingly. need carry little weight. II Is that
would seriously affect both investments
and general business. although business
would receive hectic stimulus in most
directions al the start
Wall street was in no sense panicky
yesterday. Before the stock market
closed. liquidation was fairly insistent.
but the days losses were not abnormal
One comment heard on all sides was:
Anyway. war would keep the admins
tration so busy that it would have no
time to bother with its absurd antitrust
ness program" And there was often no
trace of cyniCism in the remark
should, happily. Americas demonstra-
tion bring the swift downfall of Huerta
and the establishment Of an orderly gov
ernment in Mexico. infinite relief would
be felt-and concretely eNpressed-in the
financial world.