The sun. [volume] (New York [N.Y.]) 1833-1916, 1891-10-25


an excess OF imports last year Of nearly IN
milliona The net result Of both movements
for tho month was. therefore. over % millions
In favor OF the United States as compared with
the same month OF last year.
The change In the foreign trade balance
which was 80 pronounced last month really
dates from last spring. and has been most no.
ticeable during the three months ending Sept.
80. During that quarter the excess OF ex-
ports OF merchandise over imports was nearly
23h millions as against an excess OF imports
during the corresponding quarter Of last year
OF over 35k millions For the year ending
Sept. 30. exports exceeded imports $685.
$4,000 against an excess for the cor
responding previous year OF S9.707.-
600 These figures. in connection with the
inevitable demands OF Europe upon this coun-
try for breadstuffs and provisions and our as
sured ability to supply them. make 1t per-
fectly plain that for many months to come the
United States will be creditor nation with
enormous balances constantly accruing In its
favor. II this condition OF Affairs fails to give
IN impetuato every industry and every branch
oftrade in this country It will be because there's
something radically wrong In our financial
and economic autonomy. The advocates OF
monometallism. that il Of q gold standard.
profess to believe. and probably are convinced.
that there Is something wrong in our financial
policy. and are fond Of predicting dire disas-
ters from the recent increase In the use Of sl-
yer as q basis for circulation. The further
decline this week in the price Of silver bullion
will doubtless elicit fresh series OF pessi-
mistic representations.
Such forecasts should not DO implicitly ac.
copied without clear understanding Of the
circumstances that at present influence the
market for silver. It has been patent for
long time that the speculation In silver.
stimulated by the passage Of the act
Of July IA. 1890. has died out A COM
paratively few speculative holders OF
silver have hung on to their bullion. but
the number is growing less every day. SO that
the market for it will soon be entirely in the
hands Of bankers and merchants who have use
for 1t in their business. The speculation in
silver was unfortunate both for those who
participated In 1t and for tho metal
The first however. Is OF little conse-
auence. except that It will probably serve
to deter spectators from touching it
again. II that should prove to be the case the
fluctuations in the price will depend hereafter
upon the supply and the legitimate demand.
As to the last. it is important to note that for
eign bankers appear to be taking advantage OF
the temporary cessation Of purchases by tho
Government to secure large part. II not all.
Of the bullion represented by the certificates
dealt in on the Stock Exchange.
As has frequently been noted in this column.
the worlds surplus supply Of silver consists
largely II not entirely OF the bullion referred
to above. Excellent Information Is that the
market here as well as in London is being ma
nipulated from Paris BY bankers who are bent
upon absorbing our silver as cheaply as they
can to supply the demands Of Spain. Portugal.
and possibly those OF Russia. for it is asserted
- ~ 81 De-. H.
mtted in silver Circum stances favor the
movement for the pressure to sell in this
market Is coincidcnt with q suspension OF
Government purchases and also O less active
demand from India Remittances to India
are being supplied by extra allotments OF
Council bills. and. In consequence. the
balance OF those bills to DO allotted
during the remainder OF the fiscal
year has been very much reduced 1t Is stated
that the smelling companies are now selling
their bullion to bankers having foreign con-
nections. principally with Paris. as fast as
their product is marketable. The silver that
is thus being accumulated will in all proba-
bility be held here until Paris has secured all
that it requires. Then it will be shipped
When that time comes it will be possible to
determine whether the worlds supply Of silver
Is really as much in excess Of the legitimate
demand as the stock carried by New York for
many months has led many people to believe.
AS bearing upon the more remote future OF the
silver market it is to be noted that the ex-
ports from London to India for the first nine
months Of this year have been only about
one-half Of the amount shipped during the
corresponding period Of last year. The
Indian demand has been supplied in addition
TO tho large extra allotments OF Council bills.
by receipts Of the metal from China. which
rv hn 61rnp ba lbs b,a
seller instead OF an absorber Of silver. and has
in consequence greatly strained her metallic
reserves. Sooner or later these must be re-
plenished. and within sixty days the Indian
demand Is likely to increase. as exports Of
grain from that country have already be-
come large. and the season for NOV
ing cotton. indigo. jute. and rice be-
gins in December. by that time the deal in
the metal which Paris Is now conducting will
have been completed. and the Eastern demand
become the principal regulator OF the price.
What Is most desired by all who uso silver in
making settlements Is q stable market, and
that would seem to be assured II the present
foreign demand is sufficient to absorb the sur
plus Of 81 million ounces now held In this city.
Tho stock market this week has been little
more than waiting one. for prices have
in the main hardened. In spite OF efforts on tho
part Of both domestic and foreign operators to
keep them down. Such earnings rs have been
reported by the Northwestern and st. Paul
companies. to say nothing OF tho equally
handsome Increases shown by tho smaller
railroads. are. in the present condition
OF the money market certain to DO
reflected in tho prices for securities. II the
Improvement is gradual. so much the better
for nothing hurts market more than to have
speculation run too far in excess OF legitimate
demand. Tho dealings to-day were upon
moderate scale and resulted rs rule. in frac-
tional advances. st. Paul was tho leader
and an almost forgotten favorte. Rich
mond Terminal. ranked second both in
point Of activity and strength. 1t is
learned that negotiations for funding tho
floating debt Of the Georgia Central Railroad
Company have virtually been concluded. That
Indebtedness. which In round figures Is $4.-
100000. or nearly one-half OF the total I'm.
funded debt ofthe companies composing the
nj systen will IA IN an I'm nd t,lncaJ