San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1891-06-10
OUR FINANCES.
Reported for the LIGHT by Henry Clews
& Co. of New York.
New YORK, June s, 1891.

~ Co. OF New York.
New YORK, June s, 1891.
Wall street has been somew hat dis
appointed during the past week at the
non-cessation of the exports of gold.
Nearly 81, 200, 900 of specie has been
sent to Europe, within the six days,
in the way of regular exchange trans
actions; which shows that there Is still
outstanding foreign balance against
us, and that European bankers prefer
to have it settled in cash rather than
to allow it to remain here earning in
terest. This disposition on the part
of our foreign creditors is not remark
able considerin that the good rates
at which they can just now employ
their funds at home, and in view al
so of the fact that the great state
induce foreign bankers to keep their
metallic reserves within ready reach.
The amount Of gold already receiv-
ed from the United States would, I'M
er ordinary circumstances, amount
to q glut which would induce q great
influx of good portion of that supply.
But the circumstances at present af-
fecting European finances are not
"ordin sry" ones. To say nothing of
the lingering atter-effects of the
South American disasters-which
still remain q serious element of I'M
certainty-the relations of Russia to
the Continental and London money
markets constitute q grave source of
disturbance.
1t has very rarely happened that
we have been subjected to SO much
pressure to liquidate our maturing
foreign debts in cash as Is now being
experienced; and, with the rage of in
creasing banking reserves that now
exists across the Atlantic, it is not
easy to say when the drain may be
stopped by the cessation of an adj
verse balance of international settle
ments.
These are clearly conditions that
call for caution at this centre. 1t is
true that the situation in London has
shown considerable improvement
within the past week. The Bank of
England has gained G3, 100, 900 in gold,
making total increase tor the last
three weeks of So, 0OO, 0C0, while the
proportion of reserve to liabilities
stands at the extraordinary rate of
44.35 per cent; and under these cir
cumstances the Bank has naturally
reduced its discount rate from to 4
per cent. But strong as Is this state
ment, our weeks export Of gold shows
that the Bank Is willing to still fur
ther augment it's accumulation of
cash. The only satisfaction we can
find under these extraordinary move.
ments is the unvarying rule that q
wide swing of the pendulum
In one direction is followed
by one proportionately wide in
the opposite. The question Is
whether the change will come in time
to prevent stringency in the New
York money market. That question
is not easily solved; and we advise
our friends to await for the answer
from events, rather than jump to q
conclusion. The situation suggests
hope as we'll as caution. For while
we have had 10000, 900 of metallic
money drained off from our circula-
ton, the large special dish r,ements
of the treasury last fall and The csea-
tions of new silver currency more
than compensate for the loss. And,
as might have been expected, this in
fiation of the circulation has caused
money to flow to this city from the in
terror in liberal volume for some
weeks past, while judging from the
continued high premium on New
York exchange at the interior and at
coast cities, there is more yet to come.
Still, conceding the probabilities to
be in favor of an early end of exports
of gold and of continued receipts of
money from other cities, the nom
realization of these probabilities
would produce disappointment
which might seriously affect the
money market and cause free selling
of securities. The "bears" are per-
haps over discounting that adverse
chance, and the consequent over-sold
condition of the stock market is the
mainstay of prices at the moment.
Prudent operators, however, will de.
Ger large transactions on slim mar
gins until the future drift of market
influences becomes more apparent.
In the meantime, there is no abate-
ment of the splendid prospects of our
crops, and all symptoms foreshadow
season of exceptional traffic for the
railroads, 60 that the intrinsic value
of an important range of stocks at
current prices Is unquestionable.