Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-05-19
BUOYANCY.
THE CAR ATTEMPTING TO Me-
GOTlATE A LOAN.
With Serious Financial Strinsency.
Russia Satisfied With Gold.

Y New YORK, May 16.-The marked in
trinsic buoyancy of the stock market con-
tinueS to be held in check by the large
special exports of specie; and hence 1t be-
comes important 10 understand the causes
and Improbable duration of the gold out
floY.fhd the bearing it should legitimately
-SfTe upon confidence and the course of the
local money market.
Primarily, the exports seem TO have
arisen from the ur"encies of Russian
finance The car has for some time sought
to effect large loan, first TO provide for the
payment of maturing loans, next to con-
struct extensive lines of railroad, and also
to enable him TO construct immense mill
tary works in menace OF Germany and
Austria The Rothschilds lately undertook
qMe negotiation; but, partly on account OF
4he cars hot persecution Of the Jews and
{partly il is supposed because there was
&good reason TO suspect that the loan was also
&ntended for contemplated early hostilitleS
Agaiust fe Triple Alliance, the great bank
NssswfSe Withdrew from the transaction.
This was hard blow at the credit, the
prestige and the political ambitions of the
car: and whether in revenge or from fGan
cial necessity, does not exactly appear
Russia has since been drawing heavily upon
500. 600 900 TO Sl25, OOOOOO of deposits which,,
somewhat incXplicably, she has been allow
inc to rest with the great banks and bank
sudden drain upon the European stocks of
gold. coming close upon the deep disturb
ance of confidence arising from
the financial complications in South
America has caused continental banks
recoup themselves for the loss by getting
gold from every possible source; and nat
urally the drain has been specially directed
towards the United States. The panic in
Lisbon the uneasinesS at Madrid, and the
alarm in Paris. during the past week, are
illustrations of the way in which these
causes are acting upon European banking
interests. The trouble in those cities, how
ever. seems TO have been adjusted. and that
fact has partially restored confidence. Ncv-
ertheless. the situation is still shrouded in
uncertainty. There is an absence OF infor
nation as to how far Russia may continue
TO draw upon her deposits in foreign banks:
and, so long as that point remains uncer-
tain, caution and the desire to get gold must
continue 10 be the order oil the day at the
European centerS.
Whilst this uncertainty prevails, we must
stand exposed to Il continuance of the de-
mand on New York for gold: and Thurs
days significant advance of the Bank of
England S rate of discount from + TO , per
cent was no doubt made with that end in
view 1t is not easy TO determine what may
be the present ability of Europe TO draw
upon this country. The recent large ex-
ports of gold have been due not only to our
heavy maturing obligations on account OF
snecial importations made in anticipation of
The operation of the new tariff duties but
also to the remittance of foreign banking
balances resting here for employment. How
FAR the latter resource against cash remit
tances may have been already diminished.
il is impossible to estimate; but even had
| il been exhausted (Which is not supposable),
there would still remain ways in which
Europe could get gold from US through Dor
| rowing here, We're the pressure urgent
| enough to Justify the cost of such opera
| tons At the moment. however. the symp-
toms indicate that Russia has probably sat
isfied at least her immediate requirements
| for gold and thestone at the foreign finan-
cial centres shows more settled feeling;
| so that the hope is permissible that we may
| have now seen the worst of the international
| financial crisis.
On one point we may quite safely be con-
I fdent-that. in spite of the shallow prophe-
| cies about the loss of gold threatening Sc
| rious danger from the operation of the new
| silver act neither the gold already exported
| nor any further early amounts that may
possibly follow, can be fraught with any
more serious inconvenience than tempo
| rary stringency in the local money market.
| Whatever may come of our silver currency,
| our stock of gold is now so large that at
| worst it would require years to bring about
| the depreciation of the current value Of sill
| yer money now so hastily predicted; and,
| in the meantime, we shall have plenty of
time to correct any errors of legislation that
| experience may prove we have made.
II does not seem to be sufficiently appre-
ciated that within recent years, a very i'm
I4nBnrtant change has occurred in thu distrihu-