New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-11-26
THE FINANCIAL SITUATION.

I
70. shares sold 2,0so496 L5i24ej LooZooz
THE FINANCIAL SITUATION.
The sudden export Of over 81, OOO 600 Of gold
during last week was a new factor in the local
monetary situation. But it was without effect
upon rates for money. All the gold was drawn
from the banks on or before early Friday morn
ing; and on that day, when all loans made at
the Stock Exchange must run until Monday, I'M
less by agreement TO the contrary, the rate was
. IL per cent, with a supply in excess of re-
quiremcnts that exceptional loans were made
at ? per cent. The loss by gold exports partly
made up by the return flow from The interior;
but the little or no effect of the export movement
is due to the unusually strong position Of the New
York banks. The export movement IS occasloned
by cXccptlOna causes, and WIS principally maze
for German account to meet the payments Tor us
purchases OF Argentine Republic bonds. As an
exchange movement. every Shipment represents n
loss OF l-2a3-4 per cent TO the j.. None OF the
principal English houses or the 2natiVes Of
the Rothschids, who control the foreign exchange
Of gold j. 30 be influenced By the exceptional
causes which have sent over $1,000. OG0 away,
those special causes nearly exhausted The
Bureau OF Statistics statement for the ten months
ended October -. referred to above, shows that
the net balance on the merchandise and specie move
mont was practically the sumo as il was for the
ten months of last year. Therefore, from that
point OF view, there is no reason 20 expect any
export Of gold as "A simple exchange operation.
Further, the movement Of the cotton crop has
been delayed by the latcncss Of the picking scs-
son. that the exports of that product from Sep
TENDER / 30 date have been $4,000 bales les
than in the same period Of last year, but the
movement is now increasing, 50 that in last week
the shipments were 10000 bales more than -
the same week OF 1881. The export Of wheat
has been postponed by the CHICAGO spccull iiOn
which made The markets cast of the Rocky Noun
fains the highest in the world. L0ttcrly the
price Of wheat hss RAPIDLY declined toward
port figures, and tncTe is every reason to expect
large movement OF both il and four in the near
future. These two principal fryd1rt5 ana n rap
idly growing foreign demand for indian corn, to-
ccthor with OUr esc'tcr exports Of MHnrfdcthr'd
a,;iclcs probably VIII more them supply the cX-
change market with commercial bills
The gold export Of last wcol b." .o lttlc effect
uron III, money markets. fiat loans upon Govern
mcnt bonds al tho extreme low rates were not
disturbed. and therefore the offerings Of bonds
10 'he Treasury were only 20 the late average
amounts TIE test Of thc effect upon b0ndho,d-
cr5 OF such gold exports as will influence the rate
Of money was not made. But there can be little
question thrt if any such movement should take
place the sale Of bonds 80 the Treasury would
quickly supply the foreign demand upon our
IN London the OPEN money markets wcro
Grmcr, and the rat" for discount co.ct within
per cent of the bank rate. Hnt notwithstand-
ing that, the banl: lost during last week over
+ 100000: the ratio of its reserve ~ is La
bilitics WIS increased 1.53 per cent. Much ado
IS .ade about the Ranl, Of England gold bullion
being reduced 10 less than II 100000 II has
been there before. without creating any notice
able disturbance, and after last weeks loss its
gold Is only fl,S00.000 less than n week ago
he foreign exchanges ruled firm during the greater
part of The week without any poriicHlar activity
but naturally, the export of gold gave an easy
tone TO the market and it closed for business on
the basis OF 6 - IS and = 56 3-S respectively
tor long end short sterling.
STOCKS DEPRESSED By SPECULATION.
The week at the Stock Exchange opened with
indications of revival Of confidence despite the
lack of any official uttcranccs pointing to settle
mcuts Of the rate problem between the great rail
ways of the country. But before time WAS given
for full expression of the prevailing sentiment
10 was announced tnat over a million of dollars
i'm gold had been engaged for export, and that was
followed By the Duhllcation of suppo>itiOns that
tAo export movement would De rapid until il had
exceeded SlJ,00n.OJ0 or course the surprise
was taken advantage Of bv the operator, who for
so long q tine had been working Tor depression
ina values The movements was nagmted by the
use at AL the ingenuity tAat could be brought TO
that end. Inc strong position OF the banks; IN,
fact that money had begun TO return here ll0n
the int rior, and tie ail-mportant fact THAI the
Treasury hold, surplus OF nearly Slo.00o,000
available for The purchase of bonds and that from
- 100000 10 81 j,OOo 900 ol Ter cents are 10"
being carried with money burrOnc ed at IL per
cent which finally would seek Tie Treas.
my if the money market was dis'Wbed
10 al extent to di-piace those l0aEs-aH
these things for the moment were
lost isht Oh. Then again the railway earnings. as
compared with The corresponding weeks OF last
year. are NOT IaN.Ir .rtnl.1ir !rtNrie. j nr
readers of The Tribune, however, Who follow lt'
publication OF railway cofnin-> giving Jic figures
for tlrgc year,, when they AR" on,3iJahic, know
tnat the earnings for the CORE spending period
for last year were phenomenal and that the de-
clinrs from last year shown By the l-ulcs nOW
given @.c comparatively >unl' Wncn tnr lower
rates now charged are taken into account The
roads reporting Tor NOyemhc". $50, gave IN III
crease ON November. 1896, Of over ID per cent
The declines now from the earnings OF loo1 are
averaging about i FER cent. NoLir OF tine ROADS
alc still reporting heavy gal1s and in almost
every instance that io-Sc, are reported rom Eis,
year the exceptional cause for tI,m is that the
managers are fighting for pIlnt.pe. with
stockholders money.
10 is scarcely conceivable how anything more
damaging 70 a. bull speculation IN stocks could
De- conIr,Ncd than the combination Of circum-
stances. conditions ana cAaEgcrttionS which last
week was launched against values. Bat tie ci-
feet Of al these ihlnes was sli-hL as measured ~
prices. Naturally, IL checked any disposition
there might have been TO make purchases, either
TO-, speculative or investment accounts H. en-
couIaccd u frccr selling for the short account
bGb there Is no evidence or indication that any
long stock Was drawn from the boxes OF real
owners. The talk about London bcrg large
seller during the week Is unHairanttd ny any m
formation obtanable IN the street or any CYL
doncc on the foreign exchange market. London
va, trader upon the fluctuations III our mar
ket. exactly rs amy ordinary SPECTATOR Of New
York London did not make, but followed;
the fluctuations of the market. The downward !
movement WAS slow and insignificant until Thurs |
day morning Then q grand rush was made at
,alucs and sharp declines were cS abii,hed IN
TIE figures. The most superficial Observers Of
Tie dcaingS hoycN er could easily discover who !
IL was that making the principal sales |
az the reduced figures. Ilo-e Who supposed |
That on 50 sharp decline IN prices the short !
interest had bcccn materially reduced were undo !
ceiyod by the development Of Friday mornings
stock loan market. The snort interest was |
all there i'm the same old localities, and little
more Of it, ON Friday, in the early dealings, |
with an increased activity. prices were further |
depressed: in some instances TO lower figures !
than have been reached n several weeks pl |
But az neon q recovery set IN, which continued |
during the remainder Of the DAY anal during th' !
first hour Of Saturday. In this four hours busi- !
ness nearly the whole Of week, dccunc was !
r,cos cred. 80 that with few exceptions. even |
after some reaction IN the last hour the final |