Telegram-herald., 1891-06-08
GOLD STILL GOING OUT
Millions OF the Yellow Metal Sent
30 the Old World.
EUROPEAN FINANCES ARE UyCERIlIy
Sad nar.ssts Will Compel France and
Germany 20 kxport Gold for CsrsAis
-xhs Earopeaa Rage for
Baking Reserves.

" y
past week At the non-eessation OF the
exports OF gold. Nearly 81 900, 900 of
specie has been sent TO Europe, within
the six days, in the way OF regular ex-
change transactions, which shows that
there - still outstanding a foreign bal
ance against Us, and tnat European
bankers prefer 10 have 1t settled IN
cash rather than to allow it to remain
here earning interest. THIS disposition
on the part OF foreign creditors IS not
remarkable considering the good rates
~ which they can just now employ
their funds az home, and ~ view also
ot the fact that the great state banks
are using all their influence 10 induce
foreign bankers 10 keep their metallic
reserves within ready reach.
European Financial Affairs.
The amount OF gold already received
from the United States would. under
ord nary circumstances, amount to a
glut which would induce Il quick retlux
Of good portion OF that supply. But
the circumstances at present affecting
European finance are not ordinary"
ones. To say nothing OF the lingering
atter-etfects or the South American
q dlsasters-whlch still remain u serious
element of uncertainty-the relations
Of Russia TO the Continental and Lon
don money markets constitute grave
source OF disturbance The question Is
not so much whether that country is
either able or likely TO call for more
gold; for II seems TO be
generally conceded that Russia
has already withdrawn nearly all
her funds from foreign repositories;
the POINT OF anxiety IS as 10 whether
the Cars Government will dIsburse the
money IN redemption OF matured loans,
or 1t Will allow the loans to run and
keep the gold. Were the European
money markets in q condition To admit
OF the negotiation of Russia's proposed
new loan, no doubt redemptlons OF the
old loans would be- made tnat would re-
turn q consider able amount of gold TO
Holland, France and Germany; but the
Rothschilds still postpone that opera
ton, and Russia has on hand so many
ambitious schemes requiring large
home expenditures that she is likely To
prevent any retiux OF gold across her
boundaries, and IN that case the CONT
mental banks may suffer from scarcity
OF gold. Moreover. Russias oufra-
geously inhumane treatment OF the Jews
- producing such deep resentment in
the worlds public opinion, that there
Is a liability OF It's becoming matter of
earnest diplomatic protest. which means
in effect new and sensitive element in
tue possibilities of war. Beyond these
contingencies, the bad prospects of the
European suggest q certainty
France and Germany, having to
export considerable amount
of gold for the purchase
of cereals within Immediately
approaching months. Under these cir
cumstances, II seems reasonable TO ex-
pect that, so long as the balance OF
trade with this country gives Europe
the option of drawing gold from Us,
the opportunity will not be neglected
II IS this disposition. and the tact that
evidently we have not yet fully liqui-
dated our current floating Indebtedness
TO Europe. that accounts for the con-
tinued free export OF specie during the
past week. Ii has very rarely hap
pened that we have been subjected 10
80 much pressure TO liquidate our ma
turing foreign debts in cash as Is now
being experienced; and, with the rage
tor increasing banking reserves that
now exists across the Atlantic, II IS not
easy TO cay when the drain may be
stopped by the cessation OF an adverse
balance OF international. settlements.
The Bank of England.
These are clearly conditions that call
for caution at this csnter. 1t is true
-afft 4 Ion -
considerable Improvement within the
past week The Bank of England has
canned Is, 100, 900 in gold, making n
total increase for the last three weeks
of s32, 600 200, while the proportion of
reserve TO Liabilities stands at the ex-
trsordIuary rate of Ass per cent; and
under these circumstances the Bank
has naturally reduced It's discount rate
from 5 to per cent. But strong "a is
this statement. our weeks export of
gold shows that the bank il wiling to
still further augment its accumulation
OF cash. The only satisfaction We can
find under these extraordinary move
ments u in the unvarying rule that a
wide swing of the pendulum in one d.
revtion = followed by one proportion
ately wide in the opposite. The ques-
ton IS whether the change will con- in
time 10 prevent stringencv in the New
York money market. That question is
not easily solved. and we advise our
friends TO wait for the answer from
events, rather than Jump 10 couclu-
SION. The situation suggests hope as
well "a caution. For while We have had
So. .0oo. coo of metalic money drained OF
from our circulation, the large SPECIAL
disbursements of the Treasury last
fall and the creations new silver cur
rency more than compensate for the
loss And. "a might have been ex-
pscted. this initiation Of the circulation
has caused money 10 flow 10 this CITY
from the interior IN liberal volume for
come weeks past. whilst, judging from
the continued high premium on New
York Exchange at the Interior snd at
coast cities. there "a more vet % come.
still. conceding the probabilities 10 be
IN favor Of an early end Of exports Of
gold and of continued receipts Of money
from other cities, the non-realI1stion
Of these probabilities would produce q
disappointment which might seriously
Affect the money market and cause a
free selling Of securities. The bears
.re perhaps scouting the sd-
verse chance, and the consequent over
sold condition Of the stock Market q
the unsln.tav ~ prices AZ the moment.
Prudent operators. however, sill defer
large TRANSACTIONS on siia margins
until tha future drift of market inha-
ences becomes more apparent. In the
meantime. there q 20 sbatenlsBt OF the
snieudld psospests 0f oar crops, aud all
svntntsns. fofes6sdow = ssssssB Of sss
.-.st....s 49, fsfa Tar sfa f44fFnaas 81