Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-06-29
AMERICAN TOURISTS SPENDING IT.
Henry Clews Gives His Reasons for tn
Shipments of Gold to Europe.

Henry Clews Gives His Reasons for the
Shipments Of Gold to Europe.
NEW YORK, June 28.-Henry Clews,
commenting on the financial situation, says:
Renewed gold shipments are now hanging
like q pail over the market again. 1t Is re-
ported that between sS,0O00 900 and ~, ,ooo, 900
will go out by next Saturdays steamers, in
which event prices of stocks are not unlikely
to be marked down somewhat, providing it
is not discounted beforehand. This continu-
ance of sending gold away in such large
quantities, must confess, is most discourag-
ing, especially as the $64, ,0Oo, 900 thus far ex-
ported have not only hquidated the trade
balance against this country in full, but also
paid over to the other side all bankers and
other balances that had been the
custom to be left here for many years
past for constant use, as the average inter-
est rate was more remuneratfve. This
money has finally been called home to pro-
vide reserve to be dn hand to meet the
which banks and bankers had unfortunately
gotten themselves into by bad investments
and other unwise underta kings It was nat.
tions and frms had accumuiated dI snfieient
reserve fund to be equal to the worst pos
sible disasters that could be imagined, that
all efforts to draw more gold from us would
cease. 1t is the more disappointing for that
reason that 1t has not turned out as ex-
pected. 1t is very certain, however, that
the panic scare in Europe, which was the
original incentive for drawing our gold from
US so largely, has come at last to an end.
There must, therefore, be some other rea-
son attributed to the present gold shipments
and those hereafter, and 1t has occurred to
me that it is due to the fact that the facility
for discounting long time bills of American
bankers has been circumscribed, confidence
being impaired in all credits, owing the
numerous failures Of European firms form
erly of high credit especially that of the
Barings. At any rate, there is an apprehen-
sion felt with our American bankers with
foreign connections, which has curtailed
their drawing time bills as profusely as
ever demand bills are sold over the counter
a price Is now asked and obtained which ad-
mits of gold shipments to provide for cover
ing of same, and, as this country has now
nothing to make exchange with this side Of
the harvest, We are liable to lose by this pro-
cess more or less gold for the next
several weeks at least. A large part of
the present gold shipments are doubtless to
provide for an immense army of Americans
5000 week, as well as for the pay
ment of expenses of the $1,000 Ameri-
cans who are almost continuously resi-
dents of Europe. These latter are peo-
pie largely possessing incomes by In
heritance, which has been obtained by the
sweat of the brow of their ancestors and is
now being disloyally spent and squaudered
in foreign lands, good deal of it also for
French knick-knacks, wearing attire and
absentee American people with easily OBJ
tanned incomes, while a curse to their native
country, are Godsend to Europe, especially
France and Italy.