Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-06-04
EXPORTING GOLD.
SITUATION SUCH THAT 1T is NO
LONGER PROFITABLE.
The Bank Surplus Reserve s2,O00,o00
Higher Than it was n Year Ago-No
Cause for apprehension.

ness on the Stock exchange still turns al
most entirely on the exports of gold. AS
foreshadowed in my last advices, the ship
ments have materially declined, having
been about s4,600,000 for the week, COM
pared with S1,0000O0 last week: and al
though there is sharp demand for bills,
the probability is that we are almost at the
end of the movement. At the moment,
there are considerable payments being
made AGAINST the recent specially large in
ports of raw sugar, incident 10 the repeal of
the duty upon that article, the receipts o
which since March l exceed those for the
same period of last year by 100000 tons val
ued at 81 100000
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
millions of gold to Europe; and, although
the bank returns do not show exactly where
it all rests, YET such large and sudden ac-
cessiOn TO cash reserves cannot fail TO
strengthen confidence in the foreign money
markets, and produce an expansion of lend
ing ability. Our earlier shipments of gold
went principally to Russia: but. within the
last two weeks, the Bank OF England has
increased its gold by Sl1,500,00O, and the
Bank of France by S5.00000O, besides
-, $50, 900 i'll silver. These facts show that
the requirements of Russia We're salts
fed some time ago; and our subse
quent exports have gone mainly
toward recouping the banks of other coun-
tries for their contributions to Russia's
wants. The effect of these cash gains by
the Bank of England is apparent i'll 4 rise
in the reserve from 1888 per cent on the
2lst instant to 1890 per cent on the 18th,
while the London rate for money in the
open market is now 3 per cent against > per
cent two weeks ago. This wide divergence
between the present bank rate and the
open market quotation foreshadows an early
return TO a 4 per cent rate by the Bank of
England. There is Il difference of y 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 likely 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 a
stage at which it is both protective and
profitable to discourage further remittanceS
of gold from New York.
The probability of London fnanciers TAX
ing this course is strengthened by the fact
that Russia may be expected to soon dis
burse her accumulated gold in the payment
of imperial loans now maturing; and there
is strong motive for her taking that
course as a means OF promoting the CONT
dence that is needful to prepare the way for
the loan which the cars government has
contracted for with the Rothschid syndi-
cate. We have therefore the double fact
that the European money markets are
already reacting sharply towards ease, and
that this tendency will be soon reinforced
by the redistribution of the gold Russia
has accumulated in transient hoard.
Under these circumstances, it 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 rehux of our money in order
TO gnd use for it. Such situation as this,
suggests probability that European
bankers may direct their agents here to
lend more or less freely in advance of the
anticipated return OF gold in payment for
our crops. 1t seems reasonable, therefore,
to expect an early turn of the foreign
exchanges in our favor. In the meantime,
the rates of exchange 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, 000,0 600; which, compared with the
iShuA VI iStIuI gtdIS, Sctlu "
suggest some probability that these
receipts may soon decline. But it is not to
be overlooked that, during last fall, the
treasury let out some $4,000
600 of cash, which was drained off
into the interior as fast as it
come out, besides which the treasury has
since that time issued nearly $4,000. 600 of
new silver notes. 1t hardly seems unrea-
sonable 10 expect that, with compare
lively quiet condition of general trade
throughout the country, this immense inf1a-
ton of the currency should be followed by
specially liberal spring and summer return
of money to this center. Coupling this
probability with the prospect of favorable
influences from Europe both before and
after the harvest, it would not seem that
Wall street has any serious cause for appre-
hension about the course of the money
market from this time forward. Still, con-
sentative operators will wisely take into
account that the loan market has been
drained to point of constituencies and that
short of the immediate cessation
of gold exports might produce a stringency
in money calculated to precipitate decline
in securities; and, for that reason, coun-
sci the postpOnement of purchases until the
drift Of the money market can be more
clearly judged than at present.
The transactions of the banks with the
and the interior during the
past week snow net gain TO the banks of
nearly five millions. The bank statement,
which was issued to-day instead Of Satur-
day, shows an increase in the surplus of re-
serve amounting to e 250, 900, which places
that item S2,0O0,0O0 highsrsthan it was
year ago. HENRT Gle VS..
In advanced az ~ declining powers are
wonderfully refN I'd by Hoods Sarsapa-
rilla. 1t reS16 N = "make the weak
strong" ~