Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1892-03-16

profted largely both directly and Indirectly
from good crops The large earnings and
high credit OF the Vanderbilt properties
also enable them to manipulate these in a
most astonishing manner; while the coal
stocks. notwithstanding last weeks hquida-
ton, have been absorbed by strong parties
who are not likely to unload very freely, ex-
cept at higher than present values, or in
case of unfavorable developments in the
coal situation Values of these several
classes are now higher than for some years
past. If Europe would cease returning our
stocks, the bulls would be greatly relieved /:
but, If on the contrary, securities continue
coming westward while gold goes eastward,
their task may become much more difficult
The outflow of gold to Europe contributes,
with other influences, 70 check the upward
tendency in the prices of securities. With
the almost unprecedented excess of exports
over imports during the last few months.
preceded by an eflux of gold so extraordi-
nary thatit has been taken for granted
much of it would flow back, it has been
assumed without question that the current.
would turn again in this direction at an
early day. The result, however, disap-
points all these calculations; and although
no one fears an extent of drain that would
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 it is
almost as difficult to explain as it is to
prevent. 1t may be well. however, to
keep in view certain points as help
ing IN some measure, TO o plain this
anomalous movement. l. 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 T1ais n an
zion to that rule, still there are conceivable
and not highly improbable conditions which
might prevent such an exception occurring
2. Among these conceivable conditions NAV
be mentioned change in our investment
relations with Europe. The Barring affair
has no doubt contributed to produce such
change. The exigencies of the debtor class
in England 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
to be sold, because they have advanced In
price. This process, extended steadily over
many months, has probably sent home
much larger amount of our foreign-held
stocks and bonds than is generally sup
posed; and such a process would materially
account for less of last years export of
gold being returned than has been expected.
Again, IL 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 70 remain
for use with its correspondents here 1t
was principally through drawing home
these balances that London, Paris and Ber-
lin were able TO get from US the large
amount of gold we shipped in 1891; and,
should that policy be continued in force
still, 1t would materially effect our liability
to export specie nov. (3) Our silver pol
icy,-not only so much of it as Is already
eXacted bat also the worst phases that are
deemed possible in the future-has the
double effect of influencing the return of
our securities from abroad and of prevent
ing new investments in our railroad and
industrial enterprises; which works to the
disadvantage of our foreign financial bal
ance. az The fact that, under the new
silver law, the government has taken 54,-
OOOOOO ounces q year of silver into its
vaults which would otherwise have been
exported, increases to that extent our
liability to export gold. This factor, no
doubt, constitutes an adverse clement in
the foreign exchange far more serious than
has been supposed; and it exhibits one of
the ways in which free coinage would tend
to work out an exhaustion Of our stock of
gold. (5) Austria has determined to bring
about, at any early day, resumption of |
gold payments. For that purpose she is
to require to have on hand about |
500, 000,000 of gold, and foreign loan is to |
be shortly offered to raise a portion of that |
amount. 1t is not to be supposed that the |
great financial centers are Indifferent to |
such an important and delicate operation, |
nor that the national banks OF England, |
France and Germany will fail to employ all |
the arts known to banking to insure that |
this new large reserve accumulation is col |
ected at the expense of other stocks of |
gold than their own reserves. It is there
fore more than probable that the current |
outflow of gold is due to this
operation among other causes.
HENRY CLEws.