San Antonio daily light. [volume] (San Antonio, Tex.) 1886-1907, 1891-05-20

|
& Co.
New YORK, May 20, 1891.
The marked intrinsic buoyancy of
the stock market continues to be held
in check by the large special exports
of specie; and hence it becomes i'm
portant to understand the causes and
the probable duration of the gold
overflow and the bearing it should le-
ultimately have upon confidence and
the course of the local money market.
Primarily, the exports seem to have
arisen from the urgencies of Russian
finance. The Gar has for some time
sought to effect large loan, first to
provide for the payment of maturing
loans, next to construct extensive
lines of railroad, and also to enable
him to construct immense military
works in menace of Germany and
Austria. The Rothschilds lately I'M
dertook the negotiation; but, partly
on account Of the Cars hot persecu.
ton of the Jews, and partly, 1t is
supposed, because there was good
| reason to suspect that the loan was
also intended. for contemplated early
hostilities against the Triple Alliance
the great banking house withdrew
from the transaction. This was .
hard blow at the credit, the prestige
and the political ambitions of the
Gar; and whether in revenge or from
| financial necessity does not exactly
| appear-Russia has since been draw
| ing heavily upon the 100 to 125 million
| dollars OF deposits which, somewhat
| inexplicably she has been allowing TO
rest with the great banks and bank.
ers of Europe. The consequent large
and sudden drain upon the European
| stocks of gold, coming close upon the
deep distur bance of confidence arising
from the complications in SouthAmer-
erica has caused Continental banks to
recoup themselves for the loss by get
ting gold from every possible source;
and naturally the drain has been es-
pecially directed towards the United
States. The panic in Lisbon, the I'M
easiness at Madrid, and the alarm in
Paris, during the past week, are illus.
trations of the way in which these
causes are acting upon European
banking interests. The trouble in
those cities, however, seems to have
been adjusted, and that fact has par
TALLY restored confidence. Neverthe-
less, the situation is still shrouded in
uncer tainty.
Whilst this uncertainty prevails,
we must stand exposed TO q continu-
ance of the demand on New York for
gold; and Thursdays significant adj
vance of the Bank of England's rate
of discount from 4 to 5 per cent was
no doubt made with that end in view.
It Is not easy to determine what may
be the present ability of Europe to
draw upon this country. The recent
large exports of gold have been due
not only to our heavy maturing obli-
cations on account of special impor-
tations made in anticipation of the
operation of the new tariff duties, but
also to the remittance of foreign bank
ing balances resting here for employ
ment.
On one point we may quite safely
be confident,-that, in spite Of the
shallow prophecies about the loss OF
gold threatening serious danger from
the operation of the new silver Act,
neither the gold already exported nor
any further early amounts that may
possibly follow, can be fraught with
any more serious inconvenience than
q temporary stringency in the local
money market. Whatever may come
of our silver currency, our stock of
gold is now so large, that at worst it
would require years to bring about
the depreciation of the current value
of silver money now so hastily pre-
dicted; and, In the meantime, We
shall have plenty of time to correct
any errors of legislation that exper-
isnce may prove to have been made.
1t does not seem to be sufficiently
appreciated that, within recent years,
a very important change has occurred
in the distribution of gold, so far as
respects the United States. Between
the wears 1862 and 1877 inclusive, we
made q net export of 1856. 900, 900 of
gold; whilst during the period 1878 |
to 1890, we made q net import of $780, |
OOO, 900, there having been only three |
years within the last thirteen during |
which the export of that metal has |
exceeded the import. With such |
large and progressive accumulation |
of this metal, it surely cannot be such |
an alarming circumstance that we |
have exported some so millions since |
the beginning of April, and especially |
when there is such clear prospect |
that the next harvest will put us 80
largely in creditor relation to
Europe as to bring back to us large
portion OF the cash remittances we
are now making. During the week
ending saturday we shipped over
s. ,000, 900 gold, making a total of over
Sal 900, 900 since January LIST.
Nevertheless, while there ls no
danger of any permanent depletion OF
our stock of gold, it is not impossible
that further early shipments may so