The morning news. [volume] (Savannah, Ga.) 1887-1900, 1893-02-06
$1,000 Fl
BANKER OLRWs, VIEWS.
The Financial Outlook as Seen From
Wall Street.

Wall Street.
NEW YORK, Feb. 4.-The export of gold,
upon 80 large Il scale and contrary to gen.
eral expectation, naturally has depressing
effect upon the market for securities and
holds in check the upward tendency in
prices arising from the concurrence of sew
ersl influential factors intrinsic to the value
OF Investments. During the first four weeks
OF this year we shipped from this port over
$1,000 600 OF gold, compared with merely
nominal amounts for the same period in
1892 and 1891, and there is no clear assur-
ance that we have yet reached the end of
this movement. Did the outflow depend
upon the purely commercial balance with
foreign countries, there would be
some ground for expecting its
early end; for the trade balance for the
last three months has not been such as to
call for extraordinary shipments of specie;
and 1t may be further cited that the foreign
movement in our securities has balanced in
our favor, probably to quite an appreciable
extent. The real causes OF the outflow are
OF an extraordinary character and cannot
be satisfactorily estimated either as to their
extent or their probable duration. Tho dis
surbing influences are partly political and
partly monetary. The startling Panama
revelations in Paris have so shaken con-
fidence in the French government as to
cause q severe contradiction Of credit opera
lions by the Bank of France and by the
other Paris financial institutions, the
natural tendency Of which has been to
draw gold TO that center. Similar but
more recent DEVELOPMENTS Of official
corruption in Italy have given
an impetus to this arrangement in
credit operations and have widened its area
And the remarkable declarations of Chan
cellOr Caprlvi as to the threatening arma-
ments Of the great powers and the COuse-
quent necessity for Germany Immediately
putting herself in position for undertaking
aggressive" operations cannot but bri
over Europe a sense Of a nearness to the
great struggle which has so long appeared
Inevitable, but not hitherto actually immi-
nent. The new Egyptian question looms
up as still another disturbing factor From
similar political causes Russia has, during
the past year, been steadily withdrawing
her deposits on the continent, which are
supposed to have gone into her military
chest; and it suspected that the boarding of
Austria Hungary has also been for military
contingencies, as well as for her prepara-
tons for establishing a gold financial
basis. The distinctly monetary causes
of this gold movement have been
the apprehension incident to the
position of silver and the failure of the
Brussels conference to devise any means for
OF France this is grave situation. Hav-
ing issued notes to the full amount permit
ted by its charter, it can put out no more
paper for the procurement of gold, and in
the event of a crisis might have Co use its
silver in making payments; which, under
the present state of the silver situation,
might prove to the last degree perilous.
Under these circumstances, the bank has 10
enforce liquidation Of its loans, and the
Paris joint stock banks are following suit,
especially such of them as have branches in
London, by stopping purchases Of English
bulls; the effect of which is to draw gold to
Paris notwithstanding the banks inability
10 make direct purchases OF gold. Concur
rently with these influences, the absorption
OF gold by Austria, for the purpose of es-
fa6llshing the gold standard, is continued
without abatement,
The effect Of these political and monetary
conditions is apparent in the fact that the
Bank Of France now holds $37 900, 900 more
gold than year ago, whilst the Austria
hungarian bank shows an increase in its
holdings OF So, 600 900. The combined &C
ccumulationB Of these two banks-amount-
ing to S62, 900, 000-almost exactly CORE
spends with the net export Of gold from the
United States in 1892 which Is officially
stated at 500 ,000 900. The connection of
cause and effect is here so obvious as to tell
lts own story. This transterence has come
about through natural banking process.
The contraction of large credit operations
on the continent has necessitated q like re-
strlotton of credits in Great Britain,
and that in turn has caused some
contraction of credits in Eng
lands relations with the United
states and has induced Withdrawals Of
bankers balances from employment in this
country. / MS seems to be about the only
rational explanation Of our large losses Of
gold IL the face Of condition of our fer
elgn trade that did not call for such remit |
tances. There is. however, a limit to our
exposure TO depletion by these processes, and
~ "ou4d seem as though such drain can
not go much further. There is also this
satisractlon, that if the dangers should
really happy against which these boards
nave been accumulated. the catastrophe
VIII have been provided for in advance and
tne exposure Of the United States TO drain
VIII have been cOrresp1ndiugly dimini1hed.
Cur exposure to this sort Of Jnlng
- no more than might be expected
from our large dependence upon
european credit but it surely should be
serious question with Americans whether
tnis sort OF subsection is any longer a ne
ceeslty, at least to such an extent IS it now
e4lsts; and whether, With our vast increase
VI wealth, the time has not come when New
AorK should have credit Institutions COM
peIent to relieve this country from foreign
.eistlons that expose US to all the political
NIo financial dangers of conditions in
which we have no direct interest. The inn
mediate policy OF this country should be-,
tess money for speculative enterprise and
ulOre Tor broadening and consolidating our
o"n credit organizations.
y, HoTELKEEPER-Yes. sir. you'd be surprised at