Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-06-11
NOT ORDINARY.
Are the Circumstances Affect
ing European Finances.
A GRAVE SOURCE OF ANXIETY.
On This Side There is no Abatement of the
Splendid Prospects of Our Crops,
and a Season of Exceptional
Briskness is Foreshadowed.

NEW YORK, June 6-Wall street has
been somewhat disappointed during the
past week at the non-ceSSati0n of the eX-
ports of gold. Nearly S7,000,00o of specie
has been sent to Europe within the six days
in the way of regular exchange transac-
lions, which shows that there is still out
Standing foreign balance against US, and
that European bankers prefer to have it
settled IN cash rather than to allow it to
remain here earning interest. This dispo-
sition on the part of our foreign creditors
IS not remarkable considering the good
rates at which they can just now employ
their funds at home, and in view also of
the fact that the great state banks are
using all their influence TO induce foreign
bankers to keep their metallic reserves
within ready reach.
The amount Of gold already received from
the United States would under ordinary
circumstances amount to glut which
would induce q quick refluX of "a good por-
ton of that supply. But the circumstan-
ceS at present affecting European finance
are not ordinary" ones. To say nothing
of the lingering after-effectS of the South
American diSasters-which still remain a
serious element of uncertainty-the rela-
lions of Russia to the Continental and Lon
don money markets constitute a grave
source OF disturbance. The question is not
SO much whether that country is either able
or likely TO call for more gold; for it seems
to De generally conceded that Russia has
already Withdrawn nearly all her funds
from foreign repositories; the point of any
iety is as to whether the cars govern
ment viii disburse the money in redemption
of matured loans, or will it allow the loans
to run and keep the gold. Were the Euro
pean money markets in condition to adj
nit Of the negotiation of RuSsiaS proposed
new loan, no doubt redemptions of the old
loans would be made that would return a
considerable amount of gold TO Holland,
France and Germany: but the RothschildS
still postpone that operation, aud Russia
has on hand so many am bilious schemes re-
Quiring large home expenditures that she
Is likely to prevent any retiuX of gold acroSSsa
her boundaries. and in that case the Cont
mental banks may suffer from scarcity d
gold. Moreover, Russia's Gs;1xSek
ously inhumane treatuief of
the Jews is producing such a deep
resentment in the worlds public opinion
that there is a liability of its becoming a
matter of earnest diplomatic protest, which
means in effect new and sensitive element
in the possibilities of war. Beyond these
contingencies, the bad prospects of the
European harveStS suggest q certainty of
England, France and Germany having to
export considerable amount of gold for
the purchase OF cereals within Immediately
approaching months. Under these circum-
stances, 1t seems reasonable to expect 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. 1t is this disposition, and the |
fact that evidently we have not yet fully |
liquidated our current floating Indebtedness |
to Europe, that accounts for the continued |
free export Of specie during the past week. |
1t has very rarely happened that We have |
been subjected to so much pressure to liqui- |
date our maturing foreign debts in cash as |
Will thn
rage for increasing banking reserves that |
now exists across the Atlantic, it is not |
easy to say when the drain NAV be stopped |
by the cessation of an adverse balance of |
international settlements.
These are clearly conditions that call for /