New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1889-07-06
THE FINANCES AND IN EXTRA SESSION

The fiscal year is over and the reduction in
circulation outstanding in consequence OF gold
exports, though not so large as has been by
some appehended, is yet considerable. In
eleven months the exports had been $50, 86i,-
Col gold and ST. ,5O4,721 silver, and June
added over ST. 500, 900 gold and 81, 80, 600
silver, making more than sixty-seven millions
specie exported within the fiscal year. About
half Of this large sum, or over thirty three
millions went out in the two months of May
and June, and unless estimates of the situation
which were formerly accepted by nearly all are
to be put aside it must be admitted that the
loss Of gold at that rate could hardly continue
long without serious embarrassment But up
to the present time no disturbance has resulted,
and the large contraction in the circulating
medium during June has produced scarcely any
effect in the money market.
The decrease in circulation has been nearly
as great as the outgo of gold For although
the gold exported is not usually taken from the
coin circulation, but from the stock of bullion,
it comes to pass in the course of payments to
and by the Treasury that the amount Of ship
ments is in one way or another taken from the
circulation. The Treasury pays out bullion
ished the volume of gold bullion held almost
50 @, 900, 900 during the month OF June, haV-
ing taken about 81 5000 600 for coinage. But
gold certificates and gold coin are paid into
the Treasury for the bullion, besides othef
forms of currency through the operations OF
the Clearing House. so that the amount of gold
certificates outstandin. decreased in June
S12,251, 903, and the amount Of United States
notes diminished Sl.S10,690, while 5000
1853 bank notes were retired besides the de-
crease in amount held by the Treasury. On
the other hand, the gold and silver coin held
by the Treasury increased more than the com
age during the month"; so that in all forms the
circulation decreased SIG, 96i ,637. Having
diminished thirty four millions since May l.
the circulation is still about eight millions
larger than one year ago, and sixty -three mill
ions larger than two years ago.
Thus the money markets are for the present
amply supplied and no stringency is felt 1t
is generally expected, moreover that Tree eX-
norris Of merchandise will soon place such q
supply of commercial bills in the exchange mar
zet that gold will cease to 90 abroad. Without
controyerting this prevailing impression, it may
be wise not to forget that the demand when
has been felt from France has not been OF a
nature to be governed by the usual commercial
influences, and may possibly continue, and that
large selling of securities for foreign account
could not surprise any one in view of the out
break of new railroad controversies. Specula-
ton does not this year block the channels of
export, as in some previous years and unless
events not now expected should stimulate the
speculation for an advance, there is little pros
pect of such an interruption of foreign trade.
| But it is at least possible that the foreign de-
mand for American products may not suffice to
arrest sufficiently soon the outgo of precious
metals.
The revenue of the fiscal year exceeded that
of the previous year by SO, 300, O0O' and the
net reduction of public debt less cash was al
most So 1000, 600. In addition to the face of
bond purchases no less than S17 2 81, 1862 has
been paid for premiums. These circum-
stances all give force to the suggestion that the
President may find it expedient 20 call an extra
session of Congress in October, in order to
ford opportunity for needed financial legisla-
ton as early as practicable.