The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1891-05-26
THE WEEK IN WALL STREET.

Il THE WEEK IN WALL STREET.
j NEW YORK, May 25.-Heury Clews, in
his weekly financial circular, says,
"Advices from Europe show that our
loss of specie is not so entirely due TO
foreign financial and political exigencies
Y as has been generally supposed on this
81 side of the Atlantic. The Rotnschllos
81 have not withdrawn from the Russian
q loan syndicate, as reported, DuC nave
q merely recommended to the cars govern
II 1nent postponement untll ahaIrs IN
4 Paris have settled into more normal
II condition: nor was that deferment In
Il fiuenced by any apprehensions that Russia
H contemplated preparations for early war.
which is considered in the best informed
Il quarters as outside of present proba Dill
Il ties. and which sentiment Lord Salsbury
Il on Wednesday emphatlcalIy aHrIneu III
/ his speech at Glasgow.
II sSo far. therefore, as war scare has con-
II tributed TO auy uneasinesS on this side the
Fl Atlantic it has been wholly baselesS. NOR
does the disturbance of confidence III
Europe from financial causes appear, from
Il later accounts, to have been SO serious as
81 was inferred from the earlier cable reports
After-effects of the events Of last fall con-
tinue to appear first in one capital and
Il then in another with the result OF causing
4 fresh timidity: and the great banks under
II such circumstances seek to .fortlfy them
!. selves by liberal cash reserves; but the
latest accounts from Europe show that
there is no such grave apprehension Oh
serious monetary or credit disturbances as
has here been supposed TO exist at the
q great centers. ..,.
I 1--WE do not need to cross the Atlantic to
d find facts which go farther than has been
supposed towards accounting Tor the re-
3 cent extraordinary exports OF gold I'm,
portant causes lie much nearer home, and
Aa na
b new tariff having induced an eXtraordln-
ary importation Of goods in anticipation
of the operation of the higher rates OF
duty. For months before the Mckinley
II bill was adopted, we had been importing
at the rate Of 5000 COO per month IN excess
ofthe previous year, and during the seven
months from September lst TO April lst
the increase over a year previous was $44,-
OOO 0O0 while the increase III the exports
n during the same months was only SIG, ,OO0,-
O0O. In addition TO the adverse trade
balance thus accruing, there was large
return Of securities, consequent on the
h Barring and South American troubles,
which has been variously estimated be-
tween forty and fifty millions. 1t is thus
4 easily apparent how an adverse balance OF
4 over fifty millions may have arisen within
the last few months. Under ordinary cir
! cumstances, this balance would have been
a in a large measure tided over by European
by allowing foreign balances to remain
here for use, or by purchase of our securi-
ties: but, in the present case, Europe need
ed hard cash to strengthen itself against
its recent financial i'll fortunes and to
make remittances to Russia, and we have
therefore been called upon to pay our for
eign Indebtedness in gold.
"Our exports of gold would seem to have
| sufficed to settle this debt, and 1t therefore
appears reasonable to expect that the drain
| will soon cease. The fact that the Bank
of England did not advance its rate on
Thursday carries an inference in that di-
| '-ection Russia appears to have satisfied
| .aer wants, and the gold she has imported
| is likely again to find its way into general
circulation. The following statements
! made by Baron Bleichroder, the eminent
| Berlin banker. On the 2lst inst. TO repre-
sentative of the Associated Press, are
| worthy of special note in this connections:
'The importation of gold into Russia has
/ come to an end. Russia now has all the
| gold which it was necessary for her to
| have In order to repay the Dutch loans of
1890 and of 1850, and the 81 ,500, 600 which
| she owes to the Bank of England on ac-
count of the Barings. You Americans will
| have all the gold which you have sent to
| Europe returned to YOU by November next
| at the latest. Your gold will go back in
order to buy the harvest.
The general outlook in Europe is today
much better than when | saw you last
| Niay 49, The settlement of the Anglo
Portuguese dispute cannot but have a
! tranquilizing effect upon the European
markets. besides having good effect upon
| politics, which ! consider to be in a very
! satisfactory condition
''All great influXes of gold are soon fol-
| lowed by refiuXes, as their effect Is TO re-
| store confidence; and the restoration to
| confidence is attended with desire to en-
| ploy idle money. The question in this case
| that concerns us Is, whether gold Will flow
| back to New York in time to meet the
| usual fall demand for money to move the
| grain crops. Three months will elapSe be-
! fore that demand will begin to be much
| felt. IL during that time Europe RECEIVERS
its equilibrium, 1T may be expected
TO invest the balances it has collected
| from us. Ii confidence does not recover
TO that extent, still necessity VIII compel
such large European purchases from our
abundant crops as Will place within our
reach the gold we have so freely parted
with. In any event it is not to be over
looked that, since the specie exports set in,
we have added twelve millions 20 our sill
ver currency and that, before the fall de
mand from the west becomes active, we
shall have a further increase Of fifteen mill
ions of that form of currency. To say
nothing, therefore, of the prospective eX-
cess of the government payments over its
| receipts, IL Is clear tnaJ we can reckon
upon the loss of gold being largely COM
pensated for by the increase in the paper
circulation.
1t is no trifling warrant for confidence
that we have been able To pay upon de-
mand our entire floating Indebtedness to
Europe, without a symptom of distress
anywhere and with so little effect upon
the value of securities. Still, confidence
should not be permitted to encourage
recklessness; and prudent men will not
allow themselves TO be drawn into specu-
lative operations by the extraordinary
temptations presented by exhilarating
crop and railroad prospects, unt.l it is
quite clear that the outflow of gold has
reached its end. 1t cannot at present be
said that we are certainly clear
OF the danger of a money market
that might compel realizing on stocks. 1t
is encouraging. however, that the banks
continue TO make large gains of currency
IN their transactions with both the sub
treasury and the interior, the gains from
the former source during the week having
been=Sl, ,300, 900 and from the latter about
s., ,250, ,00o total of s.. $50 600. The exports
OF gold for the week amount in round
figures to 5000, COO"
GREAT is DANIEL.
LEAvENwoRTH, Kan, May 25.-Tonight
the police closed al the gambling houses
in the city. In March Governor Hum