The times. [volume] (Richmond, Va.) 1890-1903, 1891-05-08
EXPORT OF GOLD.


No question of present interest has at
tracted more attention than the steady flow
of gold from this country to Europe. WHAT
is the explanation of it and what viii be It's
effect?
So far MS the exclamation is concerned there
seems 10 be a number of reasons, which con-
sidered together. fully justify the expectation
of gold now in progress. First. the heaviest
balance against this country. resulting from
international commercial transactions. is OBJ
served at this season. because IN the spring our
shipments of products are comparatively light,
while our importations of necessaries and
Injuries are very large. The balance of trade
il in our favor in the fall, for by that time we
have made our heaviest exports Of provisions,
breadstuffs and cotton.
Secondly. the United States is now import
ing large quantity Of sugar, commodity
which was held back until after April LIST in
order to secure the advantage to be derived
from the clause in the Mckinley law relating
to sugars. The stock on hand in this country
at that date was comparatively insignificant,
and the importation since has been proper
tionately enormous This has created
balance in favor of Germany, which is receiy-
ing payment in the form of gold, there being
little expectation of our. products at this time
to that country.
The balance in favor Of France has been
small. and was principally caused by purchases
of silks. wines and other Injuries. The
heaviest drain of gold from the United States
has recently been directed TO London. The
explanation of this is to be found in the sales
of American securities which took place in
New York at the beginning of the financial
excitement last fall, all the proceeds of which
were not RENTED to England at the time.
being needed in this country temporarily.
A subordinate factor in the export of gold
is the large amount of foreign capital which
is left in New York to take advantage Of the
loan market pending its investment.
The premium which is being paid on the
gold exported to the continent is thought to
be due in part to an understanding between
the New York bankers and the Bank Of
France by which some profit was to be al
lowed them on the transactions which led to
the heavy importations prior to the Mckinley
law going into operation, these importations
having been made on an extended credit.
1t is anticipated that the rate of exchange
will fall and the shipments of gold stop as
soon as the expectation Of cotton and grain
begins. This will be about July LIST, and it
will continue through July, August and Sep
TENDER. In the meanwhile, the amount of
gold in the United States will be so enormous
that it cannot be seriously diminished by the
present drain.
The stock Of gold in this country May 1st
was. according to statement furnished by
the Treasury Department, 1889 $4,000.
against s704, 597 900 on January 1st, falling
off of only S15, 100000. The current produo-
ton Of our mines is about thirty-two million
dollars During the last calendar year e17,-
465, 900 of foreign gold was imported into the
United States and melted at our mines, and
nearly SO, 900 of our own gold coin was
brought back, total of $40 900 0O0
Notwithstanding the export of over SOL
600, 600 of our gold bars IN the summer of 1885,
and nearly SIG, 900 900 in the summer of 1890,
the stock Of gold in the United States on the
first of this year was about s15,OO0,O 900 more
than it was on january l, 1890, and within
$500, 900 of the gold stock on january /, 1889.
The Treasury has in its vaults $3.50 900 900
in gold, and the United States has to-day
probably the largest stock of gold of any
country in the world, with the possible excep-
ton of France"