The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-08-03
FINANCIAL REVIEW
OF The PAST WEEK
Crisis Thrust on Civilization by
Europe's Violent Rush
into War.
OF II DUTY TO MANKIND
United States Must Furnish
Support to Worlds Eco
nomic Organization.
OUR Duty TO MANKIND

most tragic chapter so for has been
opened. When and how II will close no
man can tell. but tho world ia not com
ing ia n, cnd with ,bc d,s,s.er co r,adIv
,,o,,.,., a.. -. -, =. a.,
'''''" W Tu'op'' N'n' anu 'oIh as !.
mas p'ch, the liprlc OF CIVILIZATION VIII
be repaired by the courageous efforts Of
intelligent men. but what an awful spec-
,re ~ ,ios,r,,c,io,, has, hoo, .,,,,,.oa ,,,
7. -. ...,,
~ was "o' "'''' dtte' 'he "'uuie vi
last week mat intelligence dictated the
wisdom OF aurrendcring all but the final
shreds ~ heltes tina, ,bc neaco of In
coma 500, .ot, =. =. .,........,, ~
eVe w '''
"'"N Win 'ne cIhi'h ulu"'atdih OH
Thursday and continuing with tho Ger
man declaration on Friday that a state
~ war existed. II was seen that the
worst fears were most likely to bo real
lied and hope for n miracle which would
avert a general war abroad was prac-
tcally given up by Tho financial and
business communities reliance being placed
then on such adequacy of preparations
against tho worst as Il had been possible
10 make and 20 plan for in tho near fi-
ture. There WAS no longer any DISPOSE
ton TO apprehend n mistaken construction
of action taken to deal with tho critical
situation. for II was recognized that Eu-
ropes war craze had precipitated a crisis
Of unprecedented magnitude which could
only be COPIED with by meeting IL opeply
and boldly.
How colossal tho dimensions OF the
crisis were was clearly demonstrated
N the rapid rush Of last weeks events.
Its fun PROPORTIONS doomed plainly in
Wow when the New York Stock Exchange
closed on Friday for thu first time in
MORE than forty years for other than holi-
dav reasons. the Suspension Of business
following the closing Of the London Stock
Exchange on the same dav. This loft no
where in the world any markets I'm which
securities could be bought or sold I'm any
uuantItv In. the formal closing was only
an admission Of the fac, that dealings in
| securities were no longer nossihle unless
values we're 10 ne rlithlesslv slaughtered
to an extent that would smell v1ocspread
insolvency
further up,nistakabIe paupe ~ tho
dirnensions or the crisis was given when
tho Baul, of England after raising It's dis
/ cour, rate from, A nor cent IN 4 nor cant
/ ,,, -rhu,.d,v iu,,rcd !, ahr,n,tv IN q no,
cont on Friday. and thcu nm, II M 70 | n
nor ,nr, ~, Sa,,rfla,. tho birhest figure
s!n,c ,hc Indian Ntufirv "a, order to coma
vii, , nm ON its yolJ reserves through
tI. nr.sontatiop NJ ,ts notes for rcd.mn.
lion rio ayfni yio,.nca ~ tho h,ow dcaI,
IA tbo oconor,ic s,r,,c,ure 81 civiIIzatIou
nos cyi,ced also In tho nrires made for
! nr.rnln- world securities before the mar
! kcts closed. ConsoIs were Mt the loves,
nrice ,r - cer,urv With French rcnte. >,
I Tho o,,ot,,ions made In IN. DAYS of IN.
S.nn,,,,,ro rhiia NAN stocks in Wal
c,roa, h,d hasr c,,rIed os low n. IN the
,on- r,,,ic ,,i,I ,orro loupAr
Fnreiuu evchanre disclosed tho tremen.
doue disioration Of tha money market
whom So 20 ras Maid for starting cables
,,,d q, "a f,. dor,rd ms while francs
, ,arous az 10 nr,vide nothing more than a
,oi,.,, Of tho Unconventional upheayaI The
susnsnsion or snocle pavmerts abroad
was arother SIGN Of The tines So like
v,iaa ras tho almost nrohibitiv. war risk
charged nv marine underwriters, pointing
IN tho .arly spec.arls Of oceans swept
bar, NJ carrying trade IN all except tho
relatively small number OF neutral vessels
,rrpadlataI,. nvailoble for commerce.
How much tho United states was hur,
10 only rartIv indicated in the compul-
sion v,bicb mad. ., necessary to close
! the COTTON cxchaupcs a.ter fall in tho
price of tho staplc almost equal to the
| extreme advance Of $50 100000 in tho
7 vullo of the wheat crop caused by the
{ n,ovnact Of war 4, the same time gold
/ 10 ,hc amount OF about $780, 200. 900 was
drawn ont Of the country ny Europe, de-
! spito the wild deransamert OF foreign cX'
/ change and tho exorbitlnt Insurance pre-
mi,,ms making the aggregate Of the gold
eSports Tor the year ahou. 1925, 0o00oo
! 10 reduce to comprenenyible outlines tn,
scope Of the economic crisis barely In
| tinatcd in the foregoing summary Is ar
! inpossiblIitv. The close knit organization
! OF all countries into one economic com
| munlty through the operations OF In
/ teruational credit aud commerce in thC
! las, $50 wears of modern trade and bank.
/ ing has been shattered. but nothing Il
TO be gained by dwelling on tho destruc-
| ton We face to-day new banking an(
! business conditions under which some
where there must he undertaken the tasl
OF international reorganization, and th'
only place which offers is here. The
United States is the only great industrial
nation outside the area OF European war