Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1916-03-12
WEST F0RESEES
EUROPEAN CRASH
At EARLY DATE
Investors Doubt Ability Of the
Warning Countries to Meet
Financial 0bIigationSi De-
mand Good Security

tsruciAt eorrGsroHorses 70 sosH,so JOURNAL
Chicago, March 1.-THE rap.dity
with which Europe IS burning up its
resources and the large participation
of this country in the manufacture OF
Instruments Of destruction are i'm
pressing financial pcrsous more and
more with the demands that are yet
to be made upon them Tor capital
There is n slight upward tendency in
the rates for money, which probably
means anticipation of what is coming
to us IN that line. Many people are
surprised that tenders of European
bonds should be considered IN this
county, particularly those not specif-
ieally secured by collateral Tho inn
mediate precipitating Influence will
be Premier sQuith operating through
lJ. T.. Morgan & Co.. thence on large
number OF banks and bond houses and
the final investor. Helpful in high
degree will be the great corporations
now turning out munitions OF war.
which while not under express obliga-
! ton 10 take any of these bonds, Will
do SO out OF 4 sense Of their own inter-
icsts.
| There is no good reason why the
banker or investor should abandon the
old principles of investment even UNI
der these circumstances. Therefore,
the purchaser says: we must have
collateral security"
! Many Of them have covert convic-
| ton that the debts of the belligerents
will lie repudiated simply because the
! countries will be unable to pay them.
! La Ia, he. naf Is
( not likely that the foreign held issues
! will fail of payment, for these coun-
4 tries must have some credit left on
which to base borrowings in future
wars The startling address recently
delivered in this city by President Van
} liisc. of the University of Wisconsin,,
mas impressed more than any other
I one utterancc many persons with q
fear OF repudiation Doctor Van llise
lis by no means a sensationalist but a
careful, studious and independent
analyst. He did not claim that the
debts would be repudIated, but he
! brought his hearers to the very edge
/ of this precipice.
1 Complain of Taxes.
4 banker of this city VINO spent
I considerable time in Europe three
I years ago, says that even then the
/ people Of England and Germany We're
| complaining that taxes were unbear-
4 able. If that was true then, what
4 must be said of the burden placed on
all participants in the present war?
We in this country have little idea OF
the amount of money taken annually
from the subjects Of European powers
for ordinary purposes, including mill
tary and naval equipment in times OF
I peace. 1t is declared by some OBJ
4 servers that the added burdens will
! force many to leave their homes and
migrate to other parts of the world.
1 The governments will prevent thai
ii possible. but of one thing We may
he sure, that Europe will force upon
this country every article il can spare
l--picturcs from its galleries, products
of its mills, securities in its Golfers
even the lands on which its inhabi-
tants ivc---to meet Obligations here
and keep the wolf from its own door
Almost one might say that this will
be worse than reputation of the debt
for il viii cause universal demorali'
zation in trade. We might better
make Europe a gift of two or three
thousand million dollars than have
the commerce of the world upset.
Suggestion 10 the navy department
Great Britain may have at close OF
the war few dozen excellent dread
naughts for sale.
A Benefit From the War.
To the man on the street the mo.
tive for buying these European bonds
appears not To be strong unless he
is willing to take the collateral N
liquidation OF the loan at its matur-
ity. In a broad way the loans are a
good thing for us, if the collateral
once in this country will stay here. 4
blessing comes to us out of the great
European curse. II would not be sur
prising If the bulk of our obligations
abroad should be returned.
This subject, however does not in
terest the individual in a selfish way
He can get safer securities and quite
as large an income by investing in
American issues of known stability
There arc many stocks and bonds In
lVolNng no extraordinary risk which
pay from Az to . per cent. Even
so solid q city as Omaha has just sold
4 1000 of its bonds on basis a lit
tie below Az per cent.
Il The country may reasonably wall
to see what special inducements will
be offered for the purchase of any
loans now coming on. The men nav
I ing these things in charge are not only
Il the most powerful financially, but
highly resourceful in creating mo-