Connecticut western news., 1873-10-10
The Export Trade Crippled.
Breadstuffs Held Fast In Harb0r Owing
 to the Lack of FOrefun Exchamce.

Breadstuffs Held Fast In Harbor Owing
 to the Lack of Foreign Exchange.
 The embargo on the shipment o1
 grain to Europe, says New York paper,
 continues in as rigid enforcement as
 ever, except in the case of few small
 lots that were sent off by lucky dealers
 who were able to negotiate little for,
 eign exchange. Franklin Edson, Presi-
 dent of the Produce Exchange, stated
 to reporter that the produce arriving
 from the West was stopped here com
 pletely. and million or million and
 a quarter bushels of wheat are locked
 up in the harbor for want of foreign ex-
 change. Bottoms had all been en-
 gagged some time ago to carry it.
 "Have your efforts to secure the aid
 of Secretary Richardson succeeded ?'
 up to this hour have not even re-
 ceived 8 reply to our telegram"
 "What other means remain of break
 ing the deadlock ?" "None but resto-
 ration of confidence and ease in green
 backs. We seem to be some steps
 nearer these than we were several days ago. Everything seems to be easier, itself before long. Heaven only knows | how. The produce men are all hope full, and the Exchange is standing up under the inhiction manfully." "What is the effect on your custo- mers out West ?" "It has brought trade to complete standstiu out West. | Our merchants here cannot advance anything to farmers out there until the block is broken"
 One of the most prominent members and statisticians of the Produce Fix change was also called upon by the re- porter, and questioned relative to the figures of the grain supply and move ment. He said there are now 22, 40, ,OOO bushels of grain, including wheat, corn, oats, barley, and rye, in store at the principal points of accumulation, at lake and seaboard ports, in transit by lake, rail, and canal, and in the granaries. Of this amount, there were 2, 800, 900 bushels of wheat alone, and half of that again was passing through the canals. The railroads cannot carry grain because they require greenbacks In payment for transportation, cash down. These supplies will como next week and the week after, and New York will have to meet them in great part with foreign exchange. They can do nothing in Milwaukee, Chicago, and Western cities in foreign exchange, be- cause they never have banking capital enough to run three days when New York fails them. There is in store here, in New York and Brooklyn ware houses, nearly 3, ,120, ,O0O bushels of the same grain, and peas and malt. This cannot be moved from the lack of for eign exchange.
 Will the arrival of the heavy ship ments of bullion recently reported help you ?" It may and it may not. It will depend upon the demand for gold ten days hence. But observe that the rate of gold rose one per cent to-day. That looks to me as if English capital lsts were combining to lock up gold while this cargo is on the way, to run it up to big price, and make heavy percentage"
 ''Is it likely that lookup in gold will take place with such 8 scarcity in currency ?" "It seems to be a des- perate venture, but it can succeed. These men are sharp enough to see right through financial matter on the instant, and they will not make the venture without comprehending all the details"
 Currency still remains tight ?" " Yes, and it will always remain tight, unless the ordinary laws of trade ar- range the matter otherwise. You can. not make it cheap by throwing it upon the market now, for the reason that spectators seize it. The men who hold bonds sell to the Government for greenbacks, but then they sell their greenbacks at high rates. They com mand 1O5 in the street to-day. The savings banks that sell their bonds get the greenbacks and put them away for run, and in fact, of the $1O, 900, 900 put out by the Government very little of 1t has gone into any channels that benefit general business. If the United States Treasury had put $40, ,00O,OO on the street, it would have gone just the same way"
 How is the feeling now among the produce men ?" '"There is much better feeling"
 " Is the scarcity of foreign exchange the only difficulty in the way of moving the grain p The only very pressing one. But we are short of ships. There has been loss of a million and quar- ter of tonnage within two years, with out any observable increase by building. There is an unusual demand for our crops of all sorts in Europe. Two hun- dred and ten ships are now loading with petroleum. Of the 5000 available ships we ought to deduct these 21O, as we'll as 1000 more used exclusively in the Pacific and Eastern seas. And of this small margin, ships will be needles for the movement of nOrk an q oot+or O we'll as grain. You will see at once that freights are likely to be very high. The lack of foreign exchange will hold our grain fast here until freights are too high to allow it to be shiped, although the continent of Europe clamors for our breadstuffs.'