The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-06-01
BANKER CLBws' VIEWS
a Decline in the Shipm ents of Gold
Will Ht lp the Money Market.

a Decline in the Shipments of Gold
Will ID lp the Money Market.
NEW YORK, May 30.-The course Of bust
ness on the stock exchange, says Banker
Henry Clews, still turns almost entirely on
the exports of gold. AS foreshadowed
in my last advices. the shipments have ma.
terlally declined, having been about
81, 900 900 for the week. compared with
81, 0O0, 900 last week; and al hJugh there is
a sharp demand for bills. the probability is
that we are almost at the end of the move
ment. At the moment there are considera-
Bile payments being made against the recent
specially large imports of raw sugar, Incl
dent to the repeal Of the duty upon that
article, the receipts of which since March l
exceed those for the same period Of last
year by 100, 900 tons, valued at 81, sou, 900.
The factor determining the future course
Of the foreign exchanges, however, is less
whether there is still outstanding any i'm
portant floating Indebtedness against this
country than what Europe is likely to do
under the increase OF money that now rests
in its great banks. Within the past two
months we have sent close upon fifty mills
ions Of gold TO Europe; and, although the
bank returns do not show exactly where 1t
| all rests, yet such a large and sudden ac-
oession to cash reserves cannot fail to
strengthen confidence in the foreign money
ing ability. Our earlier shipments Of gold
went principally to Russia; but. within the
! last two weeks, the Bank Of Eng
land has increased its gold by
81. 500. 900 and the Bank of France by
S.. 100000, besides s2,75O.ooO in
silver. These facts show that
| the requirements of Russia were satisfied
| some time ago; and our subsequent exports
have gone mainly toward recouping the
| banks of other countries for their contribu-
| tions to Russia's wants. The effect of these
cash gains by the Bank of England is ap-
parent in rise in the reserve from 80. SO
| per cent on the 2lst instant to 1890 per
cent. on the 2Sth. while the London rate for
| money in the open market Is now 3 per cenb/
against per cent. two weeks agY
This wide divergence between the
present bank rate and the open
market quotat on foreshadows an early re-
| turn to a per cent. rate by the Bank OF
| England. There is difference of 216 per
| cent. between the current market rate at
London and what is paid for short time
| loans at New York; and under those cir
| cumstances London bankers are liable to
| allow balances to rest here for employment
| rather than demand their remittance in
gold and thereby force the rate Of interest
still lower. The situation has thus reached
| stage at which it is both protective and
profitable to discourage further remittances
of gold from New York.
The probability of London financiers
taking this course is strengthened by the
fact that Russia may be expected to soon
| disburse her accumulated gold in the pay
ment oftmper1al loans now maturing; and
there is a strong motive for her taking that
course as a means of promoting the conf
dence that Is needful to prepare the way
for the loan which the czar's government
| has contracted for with the Rothschild SYM
fhnrnfnra ha 10
fact that the European money markets are
already reacting sharply toward ease. and
that this tendency will be soon reinforced
by the redistribution of the gold Russia has
| accumulated in transient hoard.
Under these circumstances il becomes not
so much a question whether Europe will
| want more of our gold, but rather whether
it may not find it necessary TO encourage
the influx of our money in order to find use
for it. Such a situation as this suggests
prot ability that European bankers may di.
rect their agents here to lend more or less
| freely in advance of the anticipated return
| OF gold in payment for our crops. It seems
reasonable, therefore. to expect an early
| turn Of the foreign exchanges in our favor
| In the meantime the rates of OK
change at all interior points are at
so high premium on New York as to
| suggest the continuance Of free receipts of
currency by our banks. 1t is true that the
receipts have been heavy during late weeks,
| the total net cash remittances arriving here
| from the interior since the middle of April
| having amounted to about $50, 900, 900,
| which, compared with the refiux of recent
years, might seem TO suggest some proba-
| bility that these receipts may soon decline.
| But 1t is not to be overlooked that, during
last fall, the treasury let out some $40, 0O0,-
600 of cash, which was drained off into the
interior as fast as it came out, besides which
the treasury has since that time issued
| nearly $50, 200, 900 of new silver notes. It
hardly seems unreasonable to expect
| that, with comparatively quiet
| condition Of general trade throughout
| the country, this immense initiation OF the
| currency should be followed by a specially
| liberal spring and summer return of money
to this center. Coupling this probability
with the prospect of favorable infiueuc
| from Europe both before and after the
harvest. it would not seem that Wall street
has any serious cause for apprehension
| about the course of the money market front
| this time forward. Still, conservative
| operators will wisely take into account that
| the loan market has been drained to a point
Of constituencies, and that anything short of
| the immediate cessation of gold exports
| might produce a stringency in money cal
culated to precipitate decline in securities;
| and, for that reason. counsel the postpone
| ment OF purchases until the drift of the
money market can be more clearly judged
than at present.
The transactions OF the banks with the
sub-treasury and the interior during the
past week show a net gain to the banks of
nearly 5000, 000 The bank statement,
which was issued to-day instead of Satur-
day, shows an increase in the surplus Of
reserve amounting to 81, 100000, which
places that item 80, 900 higher than it
was year ago.
MAY DEVOrIONS AT AN END.