New-York tribune., 1879-09-15
THE INFLUX or GOLD.

no one imagined that 4 drain Oi currency from
the Ncw-York banks would arise of such
magnitude rs to take from them $4,000, 600 III n
single week. nor was il believed that - 100000
IN gold could be received from Europe AT ibis port
in the same wcch to iortify The market against
continuance OF the strain. The general fail
IRE of crops III Europe not only causes the nm
prcccdented test of the strength OF tho banks,
but, through the simple methods winch specie
payments open TO us, provides adequate reileI.
The situation Will repay careful study, not
merely with n view to wise guidance OF prac-
teal operations, but as a revelation OF economic
truth for the instruction of statesmen and voters.
The banks OF Ncw-Ior. lost S6OT, 500 IN
!cgal-tcndcrs last week. Within six weeks
they have lest S1s, ,17a,O00, and this has been
only n part of the outflow of currency to the
interior For the Sub-Trcasury has also paid
out, since Saturday, August ., $3.50, OH q
in currency more than 1t has re-
ceived This date ia selected because 1t
comedies with that of the bank statement,
six weeks ago, and because the comparison
thus shows that all the currency paid into ths
Treasury by the banks in answer to the large
drafts from the 2d TO the 11th, and nearly
the whole Of the 80, oO0, 900 drawn from
them on the 1st of August, have been re-
turned to them, though in exchange for gold
which the banks have obtained from abroad.
For the banks have gained 1904, 500 in specie
during the six weeks, while the Treasury has
gained 9l3.iOO,OOO. Since the bank state
ment of Saturday, August ?, the banks have
sent INTO the interior, therefore, $23,O6l,Oll
in lcgal-tenders, and other items of the state
mcnt indicate that the amount ot bank notes
sent out during the same period has been
about - ,OOO, ,O0O in excess OF receipts Aud
vet, notwithstanding a drain greater already,
by ablut $5,OO0,OO0 than the ebtire outflow
from the banks last Fall, the reserve has not
been reduced below the point of safety, and the
loans of the banks are now only SlO,3I9,IOO
less than they were August 2. 1heeXtTaordlnary
drain has been due, in the main at least, to
the extraordinary demand for American grain
and other products in Europe. But that de-
mand has also brought hither the gold to pay
for the grain, and, thanks to resumption, the
coin and bullion become almost instantly
available as part of our currency.
September viii undoubtedly surpass any pre-
vous month in the history of this country.
IN respect to imports of specie. The amount
received here during the last week was
I
largest weeks receipts of specie ever before
recorded we believe, and, with S3,Ss7.9iO
during the first week of the month, makes
/ S12,6S7, 90 in less than half of September.
The shipments from Europe on Saturday
alone amounted to $4,000, 600 more. Within
six weeks sol, ,515, ,543 in specie has actually
arrived at this port, and enough more Is on
the sea to swell the receipts to about
$50, 900, ,OOO 1t is significant. too, that no
serious effort has yet been made by the Bank
of England to keep back its specie, In part
because the outflow does not as yet come
mainly from that bank. but from France
and in part because the plethora of specie is
so great that large outflow from the Bank
of England itself would be viewed with posi-
tive satisfaction. We have drawn from Eu-
rope $50. 100000 already, and there is still
nothing in the position or course of the Bank
of England to warrant belief that as much
more could not be drawn without any serious
resistance.
UnouestiOnably England will have to pay
to this country, in some form, much larger
sum for the food 1t requires during tho COM
ing year. An elaborate article in The L0ndon
Economist, received last week, computes that
Great Britain will require from abroad
146. .OOO, 900 bushels of wheat, at a probable
cost of $22s, coo, 900, and says eat II mod
"erate estimate we may expect to have
"to pay fifteen millions or sixteen millions
.'[S75. 900 coo, or $50 0,000,0O0l more for
our bread this year than last. The immc-
date effect On our money market may be
"to cause some strlngency; further effect
will certainly be to defer that return To
"bctter times, for which AL classes have
Z" been anxiously looking, to later date
In Saturdays issue of the same jour
nal. telegram reports, it is remarked
.'that gold will be taken from this
side only in the last resort. other means of
remittance, such is goods and bonds. being
preferrcd" But fact is better than hopeful
theory, and it does not appear that the
increase in imports of goods is likely to
he nearly as great this Fall as the
increase in imports of specie. For the
last six weeks. the increase in imports
b,rs has been $7,239,72l while over
32I 500, 600 in specie has been received
q o,oipst Ss5O,O45 last year Bonds to some
.vtert have been sent to this sido but II does
not appear that the individual holders Of good
and silable securities. which are sure to ap-
nrcciate with the growth of the country upon
which England depends for bread
and meat, are very anxious to exchange
them at any price for securities IN Great Bit
ain. However much British bankers and econ
ouists may prove that it is highly desirable for
them to do so. In short. it seems probable
that gold will continue to come hither, with
little intclmission, until the surplus OF oapi-
tal abroad has been so reduced, and The rate
Of interest there and here nearly cquaiizcd.
tl.nt other means OF settlement Will be found
more advantageous.