The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1893-03-28
THE GOuDM MOVEMENT.


his weekly financial circular, says:
''In the Wall street markets, there has
been, through the last week, distinct
| tendency towards recovery of tone and
strength. Reaction and compensations
have naturally done their work, and the
| result appears in an important recovery OF
confidence. The large outflow of currency
to the west and ether points which came
SO suddenly and unexpectedly has as sud-
denly abated. and the indications now are
that, as soon as we have turned the 1st of
April, money will flow back to this center
in considerable volume. Borrowers there
fore feel assured that, so far as concerns
the local money market, it is now only a
matter of bridging over for the next two
weeks; which is an assurance worth much
| RS contribution towards confidence.
There is drawback to this encourage
ment, however, in the fact that fall in
the local rates for loans might restrict the
present disposition to temporarily employ
foreign funds here, which might cause a
revival OF the exports OF gold. That liza
bility is real one, and no good purpose
can be served by ignoring it, No doubt
the late decrease in the ex-
ports of specie has been large
ly due to our temporary borrowings
of foreign capital; and to that extent the
stoppags of gold shipments has been a
postponement rather than cessation of
the movement. Besides, we are now
entering II four months period during
which, in normal times, we usually ship
several millions of gold per month ;and in
respect to that prospect, the only question
is whether there are any influences likely
to vary these remittances from the usual
average amount
"in respect to that question, there are
certain facts that deserve special consider
alton. In the first place, during January
and February, the export of our leading
exportable products was hindered in an ex-
traordinary degree by speculative
withholding of those articles from
the market. In the next place,
this swelled our shipments OF, gold
for those two months to possibly the ex-
tent of $50, 100000 over what they would
have been had the exports OF produce
taken their usual course. And. in the
next place, the country is now flooded and
the money market oppressed with an alto
gether extraordinary surplus of products
awaiting export, and which, it would
in large volume. The comparative
magnitude of this surplus is shown by
the fact that the visible supply of wheat is
now IS, ,oOO, O00 bushels greater than that OF
year ago following the extraordinary
crop of 1S91), and of corn $500, 600 bushels
greater; while the market value of the
home visible supply of cotton is about
5000, 900, above that of a year ago, not
withstanding its smaller quantity. The
difference in value of the visible supply of
these three articles combined, compared
with year ago, is fully equal to the nor
NAL average net export or gold from this
time to Juna l. This is fact that de-
mands much credit in considering the
probable movement of gold during the
spring months.
The most important offset against this
substantial factor is the fact that Austria
has completed her loan for the recoustruc-
tlon of her currency system, and that the
pI ocurement of gold for that purpose will
take effect Immediately. The balance
now remaining to be turned over by the
Rothschilds to the Austrian government
on account of this operation is about
SIS, ,0o0,0 600. Under ordinary circumstances.
the Rothschilds would probably have
sought to get this required sum
of gold from the United States, as some
Sl2, 000. 900 was taken from us in January
last for the like purpose. Bot it is 1T least
supposable that banking house with
such important direct or Indirect interests
in this country would not wantonly trifie
with the sensitive state OF financial affairs
now prevailing here, but would look To
unusual stocks elsewhere, and especially
to the Bank of France, whose present gold
holdings are $50, ,000 900 above the stock of
a year ago, and could therefore satisfy the
wants of Austria and Yet have
$40, 600, 600 more than the supply at the
same time of 1892
''OA the whole therefore, the prospective
movement of the foreign exchanges, so far
as it may be iuterferred from existing fac
tors. bears hopeful aspect rather than a
threatening one. And this is really, at
present, the controlling consideration.
For, both at home and abroad, we have
gotten over the elects of the failure of
congress TO suspend the purchases of sill
yer. and all sides will regard that as
sleeping factor until the next assembling
Of congress; which, from present appear
ances, seems unlikely to occur before next
December