Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1891-06-30
The Financial Situation.

We have several times lately called at
tention 10 the fact that the fear Of none
tary troubles might itself bring such
troubles upon us. The New York T'iJaIne
makes kindred point when it says that
there is much hesitation in business, and
some apprehension that the country may
be slipping away from gold basis. In
other words. there is apprehension
felt as TO what would be the final
result of falling TO the silver basis
That paper remarks appOsitely that the
enormous supplies of money sent to Eu-
rope were needed there TO prevent grave
financial disturbance, which might have
affected this country most nnfayOrably
In averting this disturbance American gold
has defended American trade and indus
tries more effectively by far than It could
if IT had remained here. Unquestionably
this is the right view TO take of the matter.
The gold sent from this country to Europe
during the last few months was our servant
there a. truly "a it could have been our
servant here had We been able to keep II
in this country. We quote the Tribune:
"During this month and July the normal ex-
cess Of imports over exports Of merchandise is
heavy, 40 that much gold has 10 De sent abroad
on that account alone, and when there ls real
iylng on American securities by European hold
ers the movement Of specie ia naturally larger.
It IL a matter Of some surprise that the mer-
chandse imports continue 80 heavy. but this IL
in large part evidence Of prosperous activity OF
industries here, since the increase In imports is
not mainly in articles which are produced In this
country"
ain resisting the movement OF gold hithcr-
ward European money markets are apt TO be-
come strong and tight so that foreign holders Of
American securities may DO induced 10 sell
still more Of them. II stocks can be unloadcd
under such financial pressure In amounts SUM-
cient 20 pny balances due for the wheat and the
cotton which Euro pc has TO buy from this coun-
try the movement OF gold may De avertod, and
at the same time the scarcity OF money hero
may cause unusually low prices for exportable
products"
alt is also to be remembered that the buying
power OF this country in n season Of good crops
Is almost incalculable. During the last year we
have felt something Of the depression which a
partial failure in agricultural production neces-
sarily involves. But there is now every reason
to expect that the crops 10 be harvested within
the next three months will be Of enormous mag
nitudc Although prices may be relatively low,
the returns 70 individual producers will be large,
and will enable them 20 clear of n great body Of
indebt edncss and TO increase their purchases for
The activity thus induced in
all branches of manufacture and Of trade will be
felt In financial circles, and will add largely 10
the buying power of Americans, for securities. as
well as for products. On other occasions. when
Europe has been compelled to take largely OF
American products, the crops being heavy, the
absorption OF securities In this country has as
tonished all fnanciers. 1t is within the limits Of
possibility that the home demand this fan may
take whatever securities Europe may have 10
sell, and at the same time maintain such n mar
ket for products that foreign countries will be
obliged TO pay fair price for whatever they pur-
chase"
These are good suggestions. The facts
ought to serve TO keep down a
panic.