New Britain herald., 1915-01-02

lrf:ltat U tion until the results of the war can
 be more accurately estimated. An early peace would decidedly help American business recovery.
 War and It's Effects.
 yet too early to form any fixed opin- ions; although great political social and economic changes must in- evitably follow Politically, Europe Is about to undergo very important reconstruction In all probability the map of Europe will ere long be drawn upon more natural lines, and the boundaries of the smaller nations will be made more in accord with racial sympathies. One grand result of the war will be the better adjustment of many territorial problems in the minor states, which kept Europe in state of ferment for generations. Race prejudice and pride will be con- ciliated, and great advantage must come from the elimination of many causes of international disputes. So- cially and politically the trend to- ward democracy will undoubtedly be highly stim ulated after the war. Power will pass more and more from despot to people. Secret treaties will be less frequent, and war must de- pend more and more upon the will of the people rather than on the die tation of an autocrat. It would be folly, however, to either expect or ac- cept too early a peace. The issues in this contest are too vital to admit of any patchwork. They must be fought to finish, which may mean exhaustion of one side or the other. And when peace is attained, long period of reconstruction will ensue, in which Europe may have to face prolonged diplomatic controversy and political and social unrest, until pros perity again resumes it's soothing sway.
 The huge increases in the debts of foreign nations must profoundly af- feet the worlds investment markets, because large portion of the sav- ings of the nations involved will be thus absorbed for several years to come. These savings, moreover, will inevitably be upon diminished scale. Before the war began Great Britain had a debt of over $3,5OO, 100000. Germany's debt was estimated at $1,- 100000, not including state debts, of which Prussia alone carries over S2,3OO,0O0,0 ,000. The debt of France is about $6,OOO, O,OOO,OO0 Russia's debt is placed at $4,50O,0Oo,0 The annual issue of new securities in the worlds principal money markets in normal times Is estimated at about $4,000, 100000, which proves that the financial problem to be faced is a stupendous one. Great Britain will probably finance the war much more readily than any other belligerent because of her vast financial re- sources, her undisturbed income from foreign investm ents; also the fact that her foreign commerce and shipping have been, relatively speaking, but slightly deranged. Her home indus try is running not far from normal. British credit has also shown extraor- dinary strength, as manifested in the rise of the pound sterling. Francs have also risen considerably, while marks and roubles have shown a de- cided decline. France is a very wealthy nation and her foreign trade has not been very seriously affected, but her valuable industries located in the populous districts within the war zone have, of course, been seriously impaired. So, too, have the indus tries of Belgium, many of which have been absolutely destroyed. Ger many has suffered much in the prac- cially, however, Germany has met the commerce. Her shipping is entirely idle, and many of her industries must suffer keenly from the loss of suf- ficient labor. Industrially and f1nan- tical suspension of her vast foreign shock surprisingly we'll. By keeping the war in foreign territory, she has thus far preserved her industries from physical destruction, and the blow to her finances has consequent ly been met much better than ex- pected by her enemies. Neverthe- less, the war came at a time when her finances were still feeling the strain of great industrial expansion, and her losses cannot but be intense ly severe, no matter how bravely anu patriotically they are met.
 Germany, moreover, cannot avoid suffering severely from the attacks made upon her commerce and finance. while her foreign investments are much less favorably situated than the British Germany's overseas invest ments are estimated at $5,OOO,OOO,- 900, of which 100000 are in Russia, Turkey and Roumania where they will be adversely affected by the war. Her investments in the United States are figured at $700,00O,00O, and in South America about $60O,- OOO,OO0. It is evident that her in vestments in the United States are of ch sesses, and those on which she is most likely to realize if necessary. As to Great Britain, her investments