THE WAR AND THE MONEY MARKET.
[Abridged from the London Times]. v: ' ! Th e; end of the war can hardly arrive without an addition being witnessed of at least 200 millions sterling to the existing debts of European 1 States. Already more than a!■' quarter . .of, that : sum has been raised, and , Prussia and Bavaria are again seeking supplies, while in the back ground there is. the huge amount to be pro--vided by France in the shape of indemnity, 1 and also for the means of icparation from the ruin of the war, together with the requirements to establish a return to specie payments. How will the London money market be affected by these needs ? Extraordinary as the impending' operations seem, there is no reason to anticipate any serious disturbance from them. Germany and France can both, when
' peace shall have been concluded, raise from their own people whatever they may want, and as regards Germany this facility is now so great that her stocks are issued at a price too high to attract any capital from this country. * * * * Looking at the whole of these considerations, the apprehension of sudden changes or difficulties in the money market as a consequence of peace may apparently be dismissed. Indeed, a prolongation of the conflict might be more calculated to produce such changes, by delaying "the power of Erance to raise money ■'■ at home, and compelling her .for a time to resort to this or other markets for indispensable supplies. Finally, the question remains—How is Erance, with such additions to her debt as must now be contemplated, to' meet the pressure they must create upon her through future years ? On such points there is always needless fear. England and Holland, the two most deeply indebted countries in Europe, present examples of the most solid wealth, and in the "United States there never were such evidences of financial ' ; power as -those which have been exhibited since the creation of their enor- i mous mass of Federal obligations. The annuities charged upon posterity represent, in their amount of principal, a tangible and marketable property, the value of which in the main is liable to be influenced.only by the degree of : ; faith that may be entertained- in the willingness or ability of future generations honestly to recognise the liabilities to which they have succeeded.
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Westport Times, Volume V, Issue 760, 7 January 1871, Page 3
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388THE WAR AND THE MONEY MARKET. Westport Times, Volume V, Issue 760, 7 January 1871, Page 3
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