The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1892-11-08
THE MONEY MARKET.


his weekly financial circular, says:
The unexpectedly large increase in last
weeks surplus of the banks is taken as in
dicating that the outflow of currency TO
the interior has reached its climax. and
that the shipments to the south. soon to
oe forthcoming, are likely to be provided
Tor by rehux of money from the west.
The reserves of the city banks. however,
are in low condition,-much below what
they were year ago and lower than has
Oeen expected. and while no real strin-
gency is feared yet f1rm rates for money
are expected for the remainder of the year.
The net export OF $50, 003 900 OF gold, during
the expired portion OF the year. has caused
a large depletion of tie lawful money re-
sources OF the banks. Since February last,
their stock of gold ana legal tenders has
b-en reduced from Sl65, 900 900 TO Sis. 000,-
OO0; Jet, with this loss of $4,000. 900 Of
lawful money, the loans have been reduc-
ed only s27, 100000.
Z nder these circumstances, the dis
quieting movements at the foreign money
centers are the more closely watched, and
there are exceptional reasons for such
vigilance. There has rarely been a period
when the great national banks Of the
world have shown such an anxiety as at
present exists to accumulate gold. This
boarding tendency is not due to any
commercial wants either present or pros
pective; for everywhere. except in the
United States. trade is depressed and con-
tracted. 1t is due partly TO conviction
that the critical position of silver may
compel an extensive resort to its substitu-
tion in banking operations By gold, and
also to the springing up of a significant
unexplained demand for gold from
Russia.
The first of these causes naturally
creates deep interest in the monetary
conference at Brussels. The bare possibil
ity that something may be done at that
gathering to stay the discardment of silver
seems, however, to have the effect of hold
ing this boarding tendency in check for the
time being; but, should that hope be dis
appointed, it Is quite possible that the
banking clamor for gold may be revived
early next spring. The special impor-
tance of this to the United States lies in
the fact that this country is looked to rs
the chief source from which the coveted
supplies OF gold must be drawn. The re-
suit OF the forthcoming conference has
therefore u special Importance for this
country, apart from its bearing upon our
specific commitment to the use oil silver;
and 1t is TO be expected that the course of
our money market and, to some extent,
the course of our stock market may be in
1.-The Grain OF gold to Russia is at pres
ent mystery. The czar's government is
understood to have to its credit in Eng
land el0: 1000 900 sterling. in Paris G5 000,-
600 and in Berlin "a ,000, 900: in all eI9,O00.
600 sterling which it can draw upon at
pleasure. Russia is now drawing Oh these
desposits. and the only check upon her
continuing her drafts is the danger that,
in so doing. she may obstruct the issuing
of loan of 1000. 900 which she desires
to negotiate in Paris. Austria Hungary
is likely to conduct her accommodating of
gold with a like prudence; for she also
wants to contract loan OF 600 0O0O, 600
sterling to enable her to resume gold pay
ments, and might easily defeat her pur-
pose by making gold scarce through ante
ce'leut purchases of that metal. 1t will
thus be seen that important. operations
are impending tending to drain gold from
quarters where II Is most accessible into
more or less fxedand permanent boards;
sud the sensltlveness, in prospect OF these
operations, must be expected to increase
rather than diminish as the time Tor their
fuihllment approaches.
mo doubt when the time comes we shall
be found competent to take care of our In
terests; but anticipation will only con-
tribute to such preparedness; and, tor the
early future, our bankers may be expected
to maIntaln a conservative position. For
our credit system and the gen.
pral business of the country are in an eX-
ceptionally sound position; and the COM
posture with which we last year took some
il00, ,000, 900 of securities, returned from
Europe within comparatively few months,
shows that we can withstand shocks
that would stagger the strongest European
bourses. 1t has been expected that the
Bank of England would this week further
its rate of discount to 81 or per
cent; and the fact that it has not done so
implies that, for the present, at least. these
elements in the European situ.
alton are held in abeyauce."