The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-05-25
BANKER Claws VIEWS.

| me reason Gold ls Being Shipped to
hurops.
NEW YORK, May 23.-Later advicss from
Europe show that our loss Of gold is not 50
entirely due to foreign financial and politi-
cal exigencies as hos been generally sup
posed on this side of the Atlantic. The
| Rothschilds have not Withdrawn from the
| Russian loan syndicate as reported, but
have merely recommended to the cZar's
government postponement until affairs in
| Paris have settled into a more normal con-
dition; nor was that deferment influenced
| by any apprehensions that Russia contem-
| plated preparations for early war, which is
| considered in the best informed
| quarters as outside of present proba-
bilities. and which sentiment Lord
| Salisbury on Wednesday emphatically af-
frmed in his speech at Glasgow. So far.
| therefore, as war scare has contributed to
any uneasiness on this side the Atlantic it
has been wholly baseless. Nor does the dis
| turbance of confidence in Europe from
financial causes appear. from later &C.
| counts, to have been SO serious rs was in
ferred from the earlier cable reports After
| effects Of the events of last fall continue to
appear, first in one capital and then in an
other. with the result Of causing fresh
timidity; and the great banks, under such
| circumstances, seek to fortify themselves
| by liberal cash reserves; but the latest &C
counts from Europe show that there is no
such grave apprehension of serious none
| tary or credit disturbances as has here been
supposed to exist at the great centers.
We do not need TO cross the Atlantic to
| find facts which go farther than has been
| supposed toward accounting for the recent
| extraordinary exports of gold. Important
| causes lie much nearer home, and are to be
found mainly in the fact of the new tariff
| having induced an extraordinary importa-
1 rinn nj in anfi1inatiOn ~ ha
| ton OF the higher rates Of duty. For months
| before the Mckinley bill was adopted we
had been importing at the rate of $4,000, 600
| per month in excess OF the previous year,
and during the seven months from Sept.
| to April the increase over year previous
was $44, 100000, while the increase in the
| exports during the same months was only
$4,000, 600. In addition to the adverse
| trade balance thus accruing there
was a large return of securities, conse-
quent on the Barring and South American
| troubles, which has been variously esti-
mated between $4,000, 900 and $50
100000. 1t is thus easily apparent how
an adverse balance of $4,000, 900
may have arisen within the last few months.
Under ordinary circumstances, this balance
would have been in a large measure tided
over by European engagements against our
future crops, or by allowing foreign bal
ances to remain hero for use, OF by pur-
CudStS VI OuT SeCuTlIleSs the present
case, Europe needed hard cash to strengthen
itself against it's recent financial ill fortunes
and to make remittances to Russia, and we
have, therefore, been called upon to pay our
foreign indebtedness in gold.
Our exports Of gold would seem to have
sufticed to settle this debt, and it, therefore,
appears reasonable to expect that the drain
will soon cease. The fact that the Bank Of
England did not advance its rate on Thurs
day carries an inference in that direction.
Russia appears to have satisfied her wants
and the gold she has imported is likely to
again find its way into general circulation.
The following statements made by Baron
Bleichroder, the eminent Berlin banker, on
May 81, to a representative of the Asso-
ciated Press, are worthy of special note in
this connection: "The importation of gold
into Russia has come to an end. Russia
now he's all the gold which it
was necessary for her to have in
order to repay the Dutch loans of
1890 aud of 1850, and the Gl,5oO, 900 which
count of the Earrings. 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 to-day much
The settlement Of the Anglo-Portuguese dis
pute cannot but have tranquilizing effect
upon the European markets, besides having
u good effect upon politics. which consider
to be In very satisfactory condition" ALI
great infuxes Of gold are soon followed by
refiuxes, as their effect Is TO restore cona-
dence; and the restoration of confidence
is attended with q desire to employ idle
money. The question in this case that con-
| Germs 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 before
that demand will begin to be much felt. II
during that time Europe RECEIVERS its
! equilibriums it may be expected to begin to
invest the balances it has collected from US.
| Ii confidence does not recover to that ex-
tent, still necessity will 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, 1t Is not to be overlooked that, since
| the specie exports set in we have added
! Sl2 600. 900 TO our silver currency, and that.
before the fall demand from the west be-
comes active we shall have a further in
crease Of SIS ,000, 900 of that form of cur
rency. To say nothing, therefore, of the
prospective excess of the governments
payments over its receipts it is clear that
we can reckon upon the loss OF gold being
| largely compensated for by the increase in
| the paper circulation.
| 1t Is no triding warrant for confidence
tnat we nave been able to pay upon demand
our entire floating indebtedness to Europe
without a symptom Of distress 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
speculative operations by the extraordinary
temptations presented by exhilarating crop
and railroad prospects until 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 81 100000. and from the latter
about S., 100000, total OF &C, $50, 900. The
| total exports of gold for the week amount
| il, r.n,, nj a.-.,.-.r