The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-06-08
BANKER CLEws' VIEWS.
What he Thinks of the Money Marke
and the Wall Street Outlook.

What he Thinks of the Money Market
and the Wall Street Outlook.
New YORK, June 6.-Wall street has been
somewhat disappointed during the past
week at the non-cessation of the exports of
gold. Nearly 81, 900, 900 of specie has been
sent to Europe within the six days in the
way of regular exchange transactions:
which shows that there is still outstanding
foreign balance against us, and that Eu-
ropean bankers prefer TO have it settled in
cash rather than to allow it to remain here
earning interest. This disposition on the
part OF our foreign creditors is not remark
able, 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 infiu-
ence 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 cir
cumstances. amount to glut which would
induce quick reflux of good portion of
that supply. But the circumstances at
present affecting European finance are not
Ordinary" ones. To say nothing of the lin
geliBg afuer~effects of the South American
disasters--which still remain a serious ele-
ment OF uncertainty-the relations of RuE-
STA to the continental and London money
markets constitute q grave source of dis
turbance. The question is not so much
whether that country is either able or likely
to call for more gold; for it seems
to be generally conceded that Russia has
already Withdrawn nearly all her funds
from foreign repositories; the point of
anxiety is as to whether the Cars govern
ment will disburse the money In redemption
of matured loans, or it will allow the loans to
run and keep the gold Were the European
money markets in condition to admit of
the negotiation Of Rus3ia's 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 post
pone that operation, and Russia has on hand
SO many ambitious schemes requiring large
home expenditures that she is
likely to prevent anv rehux
OF gold across her boundaries, aud
in that case the continental banks may
suffer from scarcity Of gold. Moreover,
Russia's outrageeusly inhumane treatment
OF the Jews is producing such deep resent
ment in the worlds public opin on that
there is 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 cons
tingences, the bad prospects of the
European harvests sugges a certainty of
England, France and Germany. having to
export considerable amount of gold for
the purchase of cereals within Immediately
approaching 99o months. Under these
circumstances it seems reasonable
to expect that, 50 long as the
gives Europe the option Of drawing gold
from US, the opportunity will not be neg
lected. lt is this disposition, and the fact
that evidently we have not yet fully liqui-
dated our current floating indebtedness to
Europe. that account for the continued
free export Of specie during the past week.
II has very rarely happened that we have
been subjected 60 so much pressure to liqui-
date our maturing foreign debts in cash az
is now being experienced; and, with the
rage for increasing banking reserves that
| now exists across the Atlantic, it is not
easy to say when the drain may be stopped
| by the cessation of an adverse balance Of
International settlements.
These are clearly conditions that call for
caution at this center. It is true that the
situation in London has shown consider bic
| Improvement within the past week. The
| Bank Of England has gained 23, 100, 900 in
| gold, making a total increase for the last
three weeks of e3, 10000 while the pro-
portion of reserve to liabilities stands at
| the extraordinary rate Of 44.25 per cent.
| and under these circumstances the bank has
naturally reduced its discount rate from 5 to
| per cent. But strong as is this statement
our weeks export of gold shows that the
bank is willing to still further argument its
accumulation of cash. The only Salts
faction we can find under these extra.
| ordinary movements is in the unvarying
rule that a wide swing Of the pendulum in
one direction is followed by one proportion
ately wide in the opposite. The question is
whether the change will come in time to
| prevent stringency in the New York money
market. That question is not easily solved
and we advise cur friends to wait for the
1 Re
| a conclusion. The situation suggests hope
as well as caution. For while we have had
| s6O,000,000 Of metallic money drained off
from our circulation, the large special
disbursements of the Treasury last