IF AMERICA DECLARED WAR.
PROBABLE FINANCIAL CONSEQUENCES. The American papers now arriving by mail are fall of all kinds of com ments concerning the sinking of the Lusitania and the relations resulting therefrom between Washing ton end Berlin, One responsible journal, the 'New \ork Evening Post , comments upon the possible financial and economic conditions which might result should there be an actual severance of diplomatic) conditions. _ Although the comment comes entirely from the standpoint of tba business man, the forecast is not without intereat B3 suggesting that Ecme o£ the thoughts may also have been in Ibe mmd of Germany itself wbeu it showed its preparedneßS lo ritk a rupture with 1 the greatest civihteJ Power which is at present not en gaged in the conflict. The City Editor of the 'jPosfc" say?:----"If the worst were to come, in the negotiations on the Note to Germany, there would necessarily be some ie casting of opinion in regard to the country's outlook. That we should be dragged into the ; economic' maelstrom in wbich financial Europe is sinking is in all respects improbable. We are not in the theatre of war, aa matters efcana, it is difficult to see how a break between the United States and Ger many could mean mere to either Power, in a governmental way, tL«a than the recall of Ambassadors by each, and the relinquishrnent by our own representative?, at the capitalgo f the Allied Powers, of the German interests for which we hava been caring. A large war loan and an increase in the excise and income taxes would necessarily ensue, ana probalya certain degree of the precautionary re Btraintin our export of foodstuffs and, war. munitions. . ; "But with these results the chapter of immediate financial consequecces would apparently end. Our grain barVBBt9 w©u|d"continue,, ap before, to act aa a mainstay, of profit and prosperifcy. Our export trade would be cut off from no foreign country I mm wbich it ia not cut off already. The requirements of our own people, resulting from the country's pro , u r. god entrench ment and accumulated wealth, would be the same as art! to day. Loo- • aofl wouia scarcely find any larger motive for 'unloading' its American securities than it has had ever since last summer. The flow of foreign capital to New York, for safekeeping or other-wise, would have as much reason to continue as before. The movement of goia to York from Europe has already riseutu dimensions as large as might have been desired if we bad been making ready for war. The facilities of our new hanking sys
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ttm are as yet so completely unemployed that the twelve Reserve banks have only 11,000,000 dollar notes out standing, and bold as rediscounts en' , 35,000,000 dollar bills, ns against cash resources of 278,000,000 dollars of which 241,000,000, dollars are gold.
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IF AMERICA DECLARED WAR., Akaroa Mail and Banks Peninsula Advertiser, Volume LXXV, Issue 3477, 23 July 1915