The Big Stone post. (Big Stone Gap, Va.) 1890-1892, 1891-05-15
no DANGER IN TT.
The Heavy Expectation Of Gold to Europe
not an Unusual Occurrence at This
Season.
AN PLANTATION GIVEN
New York Sum-


mental community, has of late become
somewhat disturbed because this country
is paving its commercial obligations to
England, Germany and France, and incl
dcntally, but OH a smaller scale, to other
our heaviest foreign trade balance in the
spring. On the other hand. when the
balance is in our favor it is settled in the
fall The reason for this is that the bal
ance in our favor results invariably from
heavy exports of cotton, breadstufiS, and
provisions, which are made as the crops
are harvested, and which are drawn
against as fast as they are shipped. In
the spring our exports Of products are
light, but We keep on buying nccessaries
and luxuries from all foreign countries,
and much Of them on time.
For example, importers bought last fall,
in anticipation Of the higher schedules of
the Mckinley bill, larger amounts of
merchandise than they ordinarily would
have taken. They were encouraged to do
so by the manufacturers and producers in
Europe who gave them longer credits than
usual, rs it was manifcstiv to the advan-
tage of both to get all of certain classes
Of goods into this country that they could
before the rates of duty upon them were
advanced.
Another factor in the monetary situa
ton at the moment is the large imports of
sugar, that commodity having been held
back until after April |, also to take ad-
vantage of the new tariff law. Payments
abroad on account of raw sugars must be
enormous this spring, for the stock of
sugar in this country was allowed to run
very low in anticipation of the placing OF
sugar upon the free list, while at the
same time the American Sugar Rclncries
Company made enormous purchases OF
raw material throughout the winter
mouths for which it must now pay rs it IS
receiving the sugar. These operations
alone, which very few people seem to have
thought Of, would account for recent
heavy remiitanccs TO Germany As we
have not been sending Germany any large
amount Of our products We have 10 pay
for our sugar with gold.
The amount of specie that has been
sent to France this spring has net been
laycc and that too, represents trade
balance in which food dclicacles, silks.
and ether luxurie5 figure largely. The
mere recent shipments Of gold are to
London. These do not require much eX-
PLANTATION when one considers the vast
amount Of American securities which
London sold in this market last fall, and
even into the winter, in consequence of
the troubles growing out OF the cmbar-
raSsment of the Earrings. Rcmittances
were not made ut once against those sales,
for in many cases it vas desirable to have
the proceeds in his city. Another factor
in the situation is The amount Of foreign
capital, constantly varying in amount,
which is left in this city to take advan-
tage Of the loan market pending its in
vcstmcnt.
With view Of asceraining the exact
financial situation abroad and the rela-
tions of this country to it, The Sun asked
many leading foreign bankers yesterday
to state exactly what is taking place be-
tween this country and the financial CEN
tres Of Europe. Unfortunately many Of
them are reluctant to be quoted, but all
agree that the operations now taking
place and which so far this year have in
volycd net shipments Of about SIS, GOO,
600 OF gold, are in the main normal.
About the only variation from the
regular course of business is the uyidty
with which the foreigners take our gold.
The Imperial Bank Of Berlin, by making
the German correspondent who has gold
shipped from New YorI; a present OF the
interest upon the money while it is in
transit, the Bank Of France by pursuing
similar policy, and the Bank of England
by placing premium on American gold
eagles, all offer inducements to their sub
sid;ary banks and bankers to export gold
from this country. In consequence the
operation can he conducted with sterling
exchange in this market ruling at lower
figures than wonld ordinarily he required
TO make such shipments 1T 4 profit The
real gamer is the American citizen who
has to remit funds to Europe.
The eagcrncss Of foreign Government
banks to draw gold from this side has
aroused apprehension that it is needed
abroad to avert some such unexpected
calamity rs the embarrassment Of the
BariDgs last November. What the gold
is needed for in Europe is to repair dam
aged credits, and the chances are that in
the work of restoring credit the leading
acquire more gold as basis Of operations
than they need.
Ono result Of the European troubles Of
last fall Is that all drawers of sterling cx-
change in this country have had their
credit cut down. That Is to say, where Il
drawer was al liberty 10 sell say $1,000 600
or so OF bills drawn on his London corr
respondent. he is now at liberty to sell
only hal. or two-thirds Of that amount
unless Of course, he can promptly cover
the transaction with commercial bills.
A commercial bills are scarce. and i'm
porters and other customers of foreign
ban kcrs are compelled to make their re-
mi.tances right along, the banker in turn
is compelled to complete the transaction
b, shipping the specie he gets for the bills
he sells.
There is no distrust abroad regarding
our bankers here that has led to Inc cur
talment Of credits, but it is the extreme
Of :i,n tnrni.rl La ,ltnr IL.