New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1881-08-15
FINANCES of THE FEEK.

sion is Created 10y this losS because 1T Is now
generally observed that comparatively little
money is going to the interior yet, that
most of the money taken from the banks has
gone into the Treasury, which will presently
pay it out again, and that shipments Of gold
from Europe have already commenced There
are conflicting reports in regard to the amount
of shipment thus far, and only one of
100000 can be counted as certain to arrive
this week, but it is said that as much as
100000 in all is now at sea- These ship
ments appear to be made in the belief that the
rate of exchange will, within a few days, have
declined far enough to make them profitable.
Further purchases of gold in Paris for future
shipment to this country are reported, and
the Bank of England rate remained unchanged
because it was found that the gold which it
had been expected would he drawn for Italy
had been obtained otherwise. The market
rate, however, is from 2ls to pig per cent,
and the expected demand from this country is
awaited with evident anxiety.
Concerning the extent of that demand there
has been much argument here, based upon the
idea that gold will not move to this side largely
unless exports in the future greatly exceed
imports. But this is mistake, if, as TIE Lon
don Economist considers, there is an unliqui-
dated balance of many millions due to this
country on past trade. The excess of mer-
chandise exports, not covered by imports of
coin, during the last fiscal year was 81 6S 557 Goa
and after a liberal allowance for freight
money and for interest on securities held
abroad, there would still be balance due to
this country amounting to nearly quite as
much rs last years imports of specie. Hence,
IL this country requires it, as large an amount
OF specie as was received last year can be
drawn from abroad during the coming year,
even if there should be no merchandise bal
ance beyond enough for freight and interest,
unless foreigners should see fit to sell to this
country part of its securities held abroad At
present, the probability is that more securities
will be sold by us to Europe than will bc
bought by lis from Europe, and that there will
be "a considerable new balance on merchandise
account i'll favor of this country. If so, the
amount of specie imports will depend entirely
upon our requirements.
AS to the probability of large exports, it is
still the fact that there is no indication of
decrease eith"r in the domestic supply or in
the foreign ,.cmand in any other important
item except wheat and corn. These crops are
expected to fall below those of last year; how
much is a matter of dispute But it is known
that a succession OF unprecedented crops has
left on hand large surplus of grain, so
that it is not probable that the export move
ment will be restricted Ivy deficiency of sup
ply. The latest advices from Europe indicate
that almost the only change in the relation of
demand and supply abroad is that Russia will
be able to export about G0,000, 900 bushels,
instead of 3O,000,000 last year, and if the de
mand upon this country should he smaller
than that of last year by 30,O00,O0O bush
els, or about 16 per cent, the advance in
price since September !, 1850, has already
been from 81 OF to 81 33 per bushel, or
nearly 80 per cent. The injury to the corn
crop, especially in Illinois, may ultimately
prove enough to diminish the exports of that
grain, but it may as well he remembered that
ii we shonld have less corn to export there
will i'll consequence be a greater foreign de
mand for wheat. On the whole there is AS
yet evidence that such decrease III ex-
ports of breadstufis is likely to occur as to
overbalance the natural and probable increase
in exports of other products.
The movement of securities is thought to de-
pend largely the duration OF the war Of
rates. Experience does not teach, however
that foreign holders are hasty in selling
securities believed to be of permanent value
because OF any event that affects temporary
profits. The course of foreign holders of trunk
line and coal stocks during the prolonged and
desperate struggles few years ago, completely
justified as it was by the subsequent apDre-
citation OF those securities, illustrates the spirit
~ which foreign investors usually regard such
events. But it cannot be said that the doings
of the past week have brought an end of the
war visibly nearer. Mr.. Vanderbilts declara-
tons, and the absence of representatives of
his railroads from the meeting OF the Execu-
tive Committee, have given the impression
that he is in very decided temper. The
controversy will be settled of course sooner
or later, but there is less apparent reason for
expecting that it will be speedily settled than
there was a week ago.
Business during the past week has been quite
active in grain, and prices OF corn and wheat
have advanced about cents per bushel, though
oats declined. Petroleum also declined a little,
with large transactions, and the exports since
January ! are now 70,O00,O00 gallons in OK
cess OF last year TO date, and 50,O0O000 gal
Ions in excess OF any other year to date. The
cotton market WAS active, but shade lower
noteworthy activity in iron appears, with 500
@$57 paid for steel rails the market for lead
is strong ut $4 80 per 100 lbs and coffee
sugar and tea are firm in price with moderate
dealings. Dry goods i'll fair demand, with
considerable Improvement in the tone of the
market. Pork products have been quiet, but
butter and cheese are firmer in price with
an increasing demand. The amount of money
shipped by the principal banks to the interior
last week was only about $500, 900, the Treas
ury having increased its specie balance from
Wednesday the 3D. to Wednesday the 10th
81, S2O,092. As $90O,OO0 of this increase was
due to transfers from Washington and San
Francisco, leaving &c. 900, 900 taken from the