New-York tribune., 1878-03-15
SALES OF UNITED STATES BONDS.

Certain facts in the financial position Of the
country ought to receive the immediate and
careful attention of the President and the
Secretary of the Treasury. Evidence is abun-
dant that clear-headed business men have been
watching them, and have been disposed,
within two or three days, to regard them as
very important symptoms. If, as many think,
and prove that they think by their financial
actions these facts give warning of serious
difficulties near at hand, the President and
Secretary ought promptly to consider what
duties for them the situation involves.
First, the sales of Government bonds have
become extraordinarily hrge. During the
week ending on the 18th instant, the officially
reported sales of United States bonds in this
market reached $7,O39, 900. The usual sales
at this season, last year, were only about
$1,7OO,O 900 weekly. Within the past four
weeks. the officially reported sales have been
$23,2G6,000. During the corresponding weeks,
last year, the sales were only $G3l1 900.
Moreover, at that time bonds were sold in
part to go abroad now the very large pro-
portion of s"lcs i'll this market represents the
return of bonds from abroad. 1t is a mistake
to suppose, as some apparently do, that these
sales are of bonds which were shipped to this
country ten days or two weeks ago; as rule,
sales are ordered by telegraph and made
here as soon as possible, the seller borrowing
bonds until those from abroad arrive The
transactions Of each day or week thus reflect
the temper Of the market during that day or
week in London and here. Finally, the Off
cially reported sales cover only Il part, and
men of the best information will probably
~, To- bon half of ti.
sales actually made in this city. During thir
teen weeks, when the actual sales by only
two firms, Won Hoffman e. Co.. and Kuhn,
Loeb & Co.. were over $11 100000, the Oli
cially reported sales by all firms in this city
were Only $23,O00,000. The facts therefore,
lead to the belief that the actual sales have
been over $4G,500,000 within four weeks,
and over $14,OO0,000 during the last week
alone.
Why does not gold rise many ask But
why should it nowY This country has just
taken q step which may, in a large degree
demonetize gold, and will in any event lessen
its use materially unless something is done to
bring it into use instead of paper. But if any
such thing is done, gold must fall nearly or
quite to par. In either event, there is moth
ing to cause an advance in price until it is
seen that large exports of specie will presently
drain our supply.
Another fact, the direct result Of enormous
sales of bonds, is that foreign exchange
is moving rapidly toward the point at which
exports of gold will begin. Quotations are al
ready within 2 per cent of the gold-cxporting
figure. In other words a further change,
very moderate in comparison with the adj
vance recently witnessed, will open the gates
which now prevent the export of gold instead
of goods in payment for bonds returned and
goods imported. This advance is not held i'm
probable by intelligent observers, in view of
the fact that the exports of domestic produce
last week fell nearly two millions below those
of the week preceding, and were actually
smaller than theimports during tie week end
ing on Saturday last But no one has found rea-
son to suppose that the excess of exports this
year would continue much longer than usual
about the middle of March they ordinarily begin
to fall short and the statistics of grain, cotton,
provisions and petroleum movements indicate
that q decline in shipments is to be expected
soon. On the other hand, imports usually rise
at this season. 1t seems to be fair inference
that shipments of gold to Europe may begin
within twenty days, or even earlier. The
amount shipped-the extent of the outward