The sun. [volume] (New York [N.Y.]) 1833-1916, 1896-03-29
PHILADELPHIA CLOSING QUOTATIONS..
March 2S.

SATURDAY. March 2S.
The attention OF thoughtful people, both in
and out OF Wall street, has been directed this
week to the present and prospective move
ments OF money. both in this country
and between it and Europe. This is natural
in view OF the condition Of the domestic money
market and Of the foreign exchanges. The pre-
vailing rates in both markets are relatively
high. in fact close to figures that might pre-
cipitate undesirable conditions. A possible
outward movement of specie upon a large scale
Is. for obvious reasons, regarded with apprehen-
sion. The same feeling exists regarding posi-
BILE stringency in the domestic money market. A
close analysis of the situation would seem to
indicate that the conditions surrounding tho
two markets are such that any decided move
ment in one Is almost certain to act upon the
\her to an extent that will prevent stringency
in money or an undesirably large outflow Of
specie.
According to common report, bankers of this
city are indebted to their correspondents abroad
to the extent Of about 49, 900. 900 for gold Dor
rowed to make payments on account OF the last
Government loan. 1t is also estimated that
an equal amount OF mercantile remittances
have been delayed because Of the sluggish
consumption Of imported goods and the
comparatively high rates for money in New
York and other commercial centres. 1t Is not
safe to assume. however, that these payments,
however large they may be, will have
to be made in the Immediate future.
As to the gold borrowed from Europe.
the bankers who lent it are willing that 1t
should remain here as long rs 1t can be
employed at profitable rates. while mercantile
operations in which foreign manufacturers and
shippers are directly or indirectly interest
ed are likely to be extended for some
time, owing to the wide difference be-
tween discount rates here and abroad.
As Europe is no longer acutely apprehensive
that the United States may abandon the gold
standard, international settlements arc likely
10 be governed as to time by the differ
ence in interest rates between Europe and
America. AS long as money is worth four
or five times as much In this country as it is in
Europe. and foreign bankers feel certain that
gold is the standard Of values here, as well as
with them, settlements will not be exacted. ex-
cept here and there. for specific reasons.
The local money market appears to be largely
In the control of the Treasury Department.
The contraction OF the currency. result
ing chiefly from the floating OF the last
Government loan, has progressed with
out incident to a point where a further con-
traction might produce an uncomfortable condi-
ton Of affairs. That the Treasury Is alive to the
situation is shown by its advance of an eighth of
l q cent. in It's price for fine gold bars.
which places those bars practically upon
an equality with the quality Of the coin
which the Treasury would disburse II demands
for ex port were made upon IL. IL is interesting
TO note, as an illustration OF the sensi-
tiveness of the money markets of the
world at this time and OF the close re-
lations between all markets. that the
advance in the price OF gold bullion here was,
according TO all accounts, precipitated by a
similar alvanca in London cansp6 Inv n ia
mand there for export in connection with Chilian
finances.
1t is doubtful whether It would be good policy
for the Treasury to further advance its price
for gold bars. since such action might be
construed as an attempt to throw an oh
stacle in the way OF tho settlement of
legitimate foreign trade balances. Since tho
Treasury still has SIS, 0OO.0 o OF the proceeds
of the last bond ssle in the special deposit
tary banks in this city, it would seem that
the wisest policy for II to pursue would
be to gradually withdraw that money from
circulation with the view OF keeping tho
rates for money at figures that will tempt
foreign capital to remain In this market, or even
attract 1t here, and thus hold the foreign ex-
change market in check. As tho Govern
ment will have to disburse several million
dollars for interest on April | II might with
p~ropriety call In an approximately equal amount
from the special depository banks, and thus
assist In maintaining the money market at Its
present level.
Criticisms that the policy OF the Treasury, so
far as 1t affects the money market, is detri-
mental To the business interests Of the
country. are hardly borne out by the facts:
for bankers and other lenders OF money
agree that the greater part OF the COM
p,ercial failures that have taken place during
the last few weeks have been of concerns that
have ignored sound business principles,
either by overtrading or engaging in
ventures outside OF their regular bust
ness. A disposition ON the part of a
certain class Of traders To take advantage OF a
fairly active money market TO compromise with
their creditors is also II distinct feature OF tho
present situation, For these reasons buyers OF
commercial paper are now 6crutiniztng
obligations more closely than heretofore, and
also demanding fuller Information regarding
the business affairs OF those who mako
or endorse paper. Concerns that are con-
servatively managed and the standing OF
which is beyond suspicion have no difficulty
in securing accommodations at fair rates. And
It is TO be noted that concerns OF that character
are borrowing on a much smaller scale than
usual, because they are not extended and are
doing business chiefly upon their own capital.
The weekly statement OF averages OF the