New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-10-15
BRITISH GOLD.

The loss of G621, 900 bullion during the
last week leaves the Bank of England with
only f21 ,O73, 72S gold in reserve 1t is n
long time since the reserve has been reduced
so low, and the condition of the bank will
probably have a very important influence
upon the finances of this country For nearly
three years the United States has been draw
ing gold very largely from England. Not
many realize how large a proportion of the
imports which have done so much to stimulate
trade and industry here have come from that
country. British official reports have been re-
ceived to the end of August covering eight
months of the year 1881. In these eight
months the excess of British exports of gold
to this country over British imports of gold
from this country has been G5,643, 900, or
about $2S,219,6 500. Since August 81, though
the excess of exports is not officially known,
it appears that the Bank of England has
lost 60, 1868, or about $l2,21s, 100
more, and much the greater part
OF this has come to the United
States. withdrawal Of over sac, OOO, 600 in
gold from the currency of any country is
likely to have important effects, and the re-
suit IN England is seen in the advance of the
bank rate, and the increasing strngency of
the outside market.
But the movement this year would have
been less effective if it had not been pre-
coded by Il steady drain of gold to the United
states ever since the resumption of specie pay
ments. The British official reports show that
the excess OF exports of gold to this country
over imports of gold from this country, during
the years 1879 and 1850, was GI2,Ol7,35O
or about $GO,0SG,7 $50. After so great a drain
as this, the further Withdrawal of about
%4O,OO0,OO0 in nine months causes serious
disturbance, and leads to sturdy resistance. In
1879 and 1850, the greater part of the gold
sent to this country was drawn by the Bank
of England from the circulation, or from other
countries, so that its loss of reserve was NOT
great But it became greater, in proportion
to the amount shipped, during the first half of
1881, and appears to have been greater
than ever during the month of September
In fact, examination of the official returns
shows that the entire loss of the reserve by the
bank, from January J. 1879, TO August 81.
1881, was only f4,571, 900, while the cx-
cess of all exports over imports of
gold during the same period was G15,O26, 043.
This shows that about G1O,5OO, 900 WAS
drawn from the circulation in Great
Britain, during that period while about
f2,6O0,OO0 was also drawn from foreign
countries for shipment hither. But in
September the bank appears to have been
no longer able to prevent loss of its reserve.
Its advance of the rate of interest did not
BRING either from abroad or from the ciyculo-
ton, the gold which the country was reolired
to ship to the United States
1t was generally expected, by those who
mad observed these facts, that the bank wonld
advance It's rates still further last Thursday
Yet this was not DONE although the loss Of
bullion had been large. Two explanations are
possible-that the director believe fine
drain about over, or that thew find
that the bank cannot afford at tl,;s
time to press the commerce and industry Of
Great Britain by a further advance. If the
former explanation be accepted it shows q
belief that the recent decline of exports from
TINS country which has been caused by ex
traVagant speculation, will continue. This i'm
preston rs To some extent supported by the
apparent revival of speculation in wheat and
corn yesterday, the decline in prices which
had been In progress for some DAYS having
neen followed by stronger tone end some
advance. But it is not improbable, on the
other hand, that the condition of bnsiness in
Nreat brltalh, and the state of its trade with
France render further advance in the rate
OF interest particularly undesirable. if NOT nos
itiveiy dangerous. England can force Franco
TO part with more gold, no doubt: bpt can do
so only at the risk of causing a serious disturh-
ahce III the Paris money market, and in tha
commerce between England and France. which