Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1891-02-15
GOLD FLOWING AWAY.
THE EFFECT IS TO CHECK OPERATIONS
IN STOCKS.
Nevertheless a Continuance Of the Ease In
the Money Market Is Reasonably Assured
Facts as to the Advance of the Rates for
Sterling.
rrc1A TELEGRAM TO TIE prsrArcH.,

SPECIAL TELhthAA ~ n DlSfATCH.i
NEW YORK, Feb. l4-Henry Clews & Co., In
their financial review for the week just ending,
say: During the past week a change has come
over the temper of the Stock Exchange. The
rise of the previous week has placed fair profits
within the reach of traders, and q series Of cir
cumstances have combined to induce holders to
realize upon the advance. In the first place,
there has been and is a general disposition to
hold operations in suspense until after the adj
journment of Congress, 30 as to escape being
caught with any of the surprises which
are apt to be forthcoming at the
last stages of the session, and the
more so as there are still pending several
measures of unusual Importance. including the
silver bill. In the next place. the continued in
PRODUCTION into the Minnesota Legislature Of
measures adverse TO the railroads has had q
discouraging effect upon the range Of stocks
subject to Granger influences. And again, the
announcement Of the failure OF two small
banks in Massachusetts, has had q temporarily
depressing bearing; beside which the extraor-
dlnary decline in the earnings Of the Atchison
and Topeka road has operated as a discourage
ment.
But the main factor contributing to this
change of tone has been an entirely Unexpected
sharp advance in the rates for sterling and for
marks up to the point admitting of exports of
gold, some 81. 10000 having been engaged for
shipment. This has produced . certain measure
of scare; for although the banks are unusually
we'll stocked with gold yet it is felt that there
is still a remnant of sensitiveness in the loan
market which might easily grow into an IN
settled feeling, in the event Of our losing o few
millions of specie. And yet there are no OBJ
vious reasons for e. expecting that the export viii
run to any serious extent. The loan Of f2,0O0,.
900 by the Bank of France to the Bank
of England is now about maturing. One-third
of the amount was paid within the past week,
leaving E2.000.0 600 still TO be provided
for. The Bank of England, however, had, q
week ago. nearly f5,OO0.O00 more gold than &C
the same date for the average OF the last f1ve
years: and the fact of Its reducing its rate of
discount to 3 per cent on the 9th inst. showed
that the managers could have apprehended no
difficulty in providing for these payments to
money in the London open market is only 1H0
IL per cent, indicating that the present state
OF exchange here is less likely to have arisen
from any pressure 1t London than from causes
on this side. IL is not unusual for the rates Of
exchange to rule high at New York In Fsbru-
ary and March. In those two months in 1889 we
exported IS. zoo, 900 gold. and for the last six
years the shipments for those months have av-
eraged close upon $3.0O0,000. 1t - quite likely
| that the obligations incurred against the extra
| importations Of goods made in anticipation Of
the new tariff may now be maturing and
causing a special demand for sterling bills. 1t
is probably in causes of this nature, together
with an indisposition ON the part Of London to
take our securities until the failure Of free
coinage has become an accomplished fact, that
| the main explanation Of this unexpected out
flow of gold Is to be found Provided the Bank
emit auIple cash reserve-which IL probable In
l view Of the above facts-and that the free silver
bill should be defeated, it II quite possible that
London orders for our securities may send gold
hither more freely rnan It is now being sent out
The foregoing causes have mainly producsd