The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1892-03-14
And Fevcrlsh During tho wcck...Thc
Outflow Of Gold to Europe Contri.
butes to Check the Upward Ten.
dcncy of seouritlcs...An Explana.
tlon Of tho Gold Movement ontrcd
by tho Finnncicr.
pleiql Correspondence q ne fn,.1lo,no.r,

ihui N.Y. AUS pUcu III uu uuSOttlcu una
fcverish condition during tho week,
chiefly owing to. developments in St.
Paul and New England. There are
conditions strongly iavoring an advance
in values, and these have been rein
forced through tho concentration Of
stocks by heavy capitalists who are act
lively enlisted on the bull side. Al the
same time, the bull campaign will have
to DO conducted against difficulties
which did not exist few weeks or
months ago. Unjust not DO overlooked
that business results are falling rather
short of expectations; that tho South
has received q severe shock IRON cheap
cotton; that tho iron trade is in poor
shape and lower prices arc threatened;
that wheat Is much lower than year
ago in spite OF llirge foreign demand
and that the bad state OF trade in
Europe must, in q measure, act dctri.
mentally here. These arc drawbacks
from which We cannot escape, and they
partly explain the disappointment often
seen just now in mercantile circles
II to these setbacks we add tho dis.
turbance OF confidence by tho present
silver agitation, it's easy to see that
the onward march OF the bulls, how
ever strength has thus far been in the
grangcrs, which prohtcd largely both
directly and indirectly from good crops.
The large earnings and high credit OF
the Vanderbilt properties also enabled
them to manipulate these in most
astonishing manner; while the coal
stocks, notwithstanding last week
liquidation, have been absorbed by
strong parties whoare not likely to un-
load very freely, except at higher than
present values, or in case ofunfavorable
developments i. in tho coal situation.
Values OF these several classcl are now
higher than Tor some years past If
Europe would ceasereturning our stocks,
the bulls would begrcatly relieved; but,
il on the contrary; securities continue
coming westward while gold goes east
ward, their task may become much
more difficult.
The outflow OF gold to Europe con-
tributes, with other influences, to check
the upward tendency in the prices OF
securities. With the almost-unprecc-
Gented excess OF exports over imports
during the last few months, preceded
by an etlluX OF gold SO extraordinary
that it has been taken for granted much
OF it would flow yet back, it has been
assumed without question that the
current would turn again in this direc-
ton at an early day. The result, how
ever, disappoinla allthcse calculations /;
and although no one fears m extent OF
drain that would produce any real
strinnSency OF money at this centre, yet
in view of the position in which silver
legislation has placed us or may yet
place US, it suggests some serious
thoughts to SEQ gold leaving the coun-
try 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 helping. in some
measure, to explain this anomalous
movement. a. This is the period OF
the yearai which we usually export
COLDS and althoughtthe trade balance is
now SO largely in our favor that we
mig hit expect this season to provo an cX-
ception to that rule. still there are CON
ceivable and not .hishlyimprobablc con-
ditions which might prevent such an
exception occurring. (2) Among those
conceivable conditions may be men,
toned u changein our investment rcla-
lions with, Europe. Tho Boring affair
has no doubs contributed to produce
such change The exigionces OF the
debtor class in England and on the Con-
tinent have compelled realizing on in.
restment and on commercial reserves
and American investments have no
doubt been among tho first to be sold,
because they have advanced i'll price.
This process, extended steadily over
many months, has probably sent homo
much larger amount of our foreign
held stocks and bonds than is generally
supposed; and such 4 process would
materially account for less OF last years
export OF gold being returned than has
been expected
Again, it is moro than conceivable
that Europe, under the financial condi-
lions that have prevailed there, may
have preferred to keep its accounts with
the United States closely balanced, in.
stead OF allowing an unknown but very
large amount of funds to remain for use
with its correspondents here. 1t was
principally through drawing home
these balances that London, Paris and
Berlin were able to get from US the
large amount OF gold We shipped in
1891 and, should that policy be contin-
ucd in force STILL it would materially at
feet our liability to export specie now.
(3) Our silver policY,-not only so much
OF it as is already exacted, but also the
worse phases that are deemed possible
in tho futurc,--has the double effect OF
influencing the return OF our securities
from abroad, and OF preventing new in
rcstments in our railroad and industrial
cnternrises; wh.ch works to the advant-
age OF our foreign financial balance. (4)
The fact that under the new silver law,
tho government has taken 54,000OOO
ounces Il year OF its silver into its vaults
which would otherwise have been OK,
ported, increases to that extent our lia-
billtyto export gold. This factor, no
doubt, constitutes an adverse clement
IN the foreign exchanges far more SER
ious than has been supposed and it on
hibits ono OF the ways in which free
coinage would tend to work out an ex-
haustion OF our stock OF gold. (5) Aus
tria has determinedto bring about, at
IN early day, 4 resumption OF gold pay
ments For that purpose she is expect
cd to require to have on hand about
500, 100000 OF gold, and a foreign loan
is to BIO shortly offered to raise a por-
ton Of that amount.
1t is not to be supposed that the great