Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1892-03-17


no one fears an extent of drain that woul5
produce any real stringency of money at
this center, yet in view of the position in
which silver legislation has placed us. or
may yet place US, it suggests some serious
thoughts to see gold leaving the country so
continuously. and in ways which il Is
almost as difficult to explain as il is to
prevent 1t may be well, however. to
keep in view certain points as help-
anomalous movement !. This is the
period of the year at which we usually ex-
port gold; and although the trade balance
IS now so largely in our favor that we
might expect this season TO prove an excep-
uon TO that rule, still there are conceivable
and not highly improbable conditions which
might prevent such an exception occurring.
2. Among those conceivable conditions NAV
be mentioned change in our investment
relations with Europe. The Barring affair
mas no doubt contributed to produce such a
change. The exigencies of the debtor class
IN E'.gland and on the Continent have COM
PEELED realizing on investments and on COM
mercial reserves; and American invest
ments have no doubt been among the first
10 be sold, because they have advanced IN
price This process, extended steadily over
many months, has probably sent home
much larger amount of our forefgp-held
stocks ana bonds than is generally SIM
posed; and such process would materially
account for less of last years export of
gold being returned than has been expected.
AGAIN, 1t is more than conceivable that
Europe, under the financial condi-
tons that have prevailed there,
may have preferred to keep
its accounts with the United States closely
balanced, instead of allowing an unknown
but very large amount of funds TO remain
.or use with its correspondents here. 1t !
was principally through drawing home |
-hese balances that London, Paris and Ber- |
in were able to get from us the large |
amount OF gold we shipped in 1891: and, |
mould that policy be continued in force |
'tlll, 1t would materially effect our liability |
o export specie now. 90 Our silver pol
cy.-not only so much of it as Is already
,Xacted but also the worst phases that are
ieemed possible IN the future,-has the
iouoie enect of influencing the return of
'ur securities from abroad, and of prevent
ng new investments in our railroad and |
ndusfr enterprises: which works to the |
disadvantage OF our foreign fnancI,l bal
nee. a. The fact that, under the new
liver law, the government has taken 54,-
OoOUO ounces year Of silver into its
aults which would otherwise have been
xported, increases to that extent our
ability to export gold. This factor, no
ouDt. constitutes an adverse element in
ne Foreign exchange far more serious than
as been supposed; and it EXHIBITS one of
ne ways in which free coinage would tend
work out an exhaustion OF our stock of
old. o. Austria has determined to bring
bout, at any early day, resumption of
old payments. For that purpose she is
expected to require to have on hand about
.OO,OO0,OOO Of gold, and a foreign loan is to
shortly offered to raise portion of that
mount. 1t is not to be supposed that the
reat financial centers are Indifferent to
lch an important and delicate operation,
Or that the national banks OF England,
rance and Germany will fail to employ ali ..
e arts known to banking to insure that !
rs new large reserve accumulation Is COL
cted at the expense of other stocks of
I'd than their own reserves. Il is there
re more than probable that the current {
respected outflow of gold is due to this Y
eration among other causes.
HENRY CLHWs