The Saint Paul globe. (St. Paul, Minn.) 1896-1905, 1896-08-24
RECENT EXPORTS WE'RE FORCED,
SAYS HENRY cLEWs' FINAN-
CIAL LEFTER.
FINANCES ARE IMPROVING.
ABATEMENT OF Il THE. FRIGHT
OVER THE SILVER AGITATION
VS. NOTICEABLE
REASON FOR lefl CONFIDENCE
Much Greater Activity for the
Close of 1896 TIs. Now Pre-
dicfed.

Special to the Globe.
NEW YORK, Aug. 23.-In his weekly
review of the financial conditions in
Wall street, Henry Clews says:
Affairs in Wall street are working into a
more normal condition. The recent abate-
ment of the extreme fright over the silver
agitation promises to be permanent; the pam
themselves.
These are great ameliorations; but here
new obstacles intervene to obstruct the i'm
proving tendency that might otherwise be
market creates some uaeasiness. The bank
statement of Aug. Is showed surplus of re-
serve of only $9,40OeOO over the legal min
imum. At the same date of 1895 the surplus
was $41, 100000 and in 1894, SGT, S00, 900. To
some extent this low condition of the banks
cash is due to the exports of gold during late
months; and there is perhaps reason to hope
for relief from this same source, the foreign
exchanges.
For seven months, ending July 81, the net
export Of gold from the whole country was
SIG. 672, 0oO which is s14 300, 900 more than the
net shipments for the same period of 1885,
This Is clearly an abnormal movement; for
the exports OF merchandise Qncluding silver
for the last seven months have exceeded the
like class of imports by $109, 000, Goa bal
ance which should have put the gold move
ment in our favor rather than $26, 672, 900
against us; especially as the net movement
In securities between this and other countries
has not been materially against us, if at ALL
1t Is well known that large sums of gold
were obtained from this center for CONT
mental remittance to Russia outside the
usual course of exchange. Those operations
however went to the creditor side of our in
ternational account, and therefore may, soon
er or later, be expected to either increase the
amount of gold to be RENTED hther or to
diminish the sum to be exported by us. In
all probability these irregularities have yet to
be Strengthened out and 1t would not be sur
prising should we see within the next few
weeks an important refiux Of gold from Eu-
rope. The sudden development of weakness
In the exchange market and the fact that the
syndicate OF exchange drawers have not found
IT necessary to issue any bills under their
speclal arrangement seem to suggest early
importations OF metal. the more SO as rates
are already close upon the point admitting
OF q profit on sending IL mere. Arrivals Of
$40 100000 to S2O, 600 gold would not only
put an easier complexion2 upon the local
confidence in the gold situation In any
event our foreign trade movement is drift
Ing into healthier condition During the
nrst seven months OF the current calendar
OF the like months of 1895 byI S69 OG0 900, while
the imports show a decrease of $43 600 900:
whicn shows our account with the rest of the
world to have been In a better condition
lor the last seven months, by over 500 600 900
than it was for the same period of 1895. This
is the result OF series of reactions from
various abnormal conditions, and it can only
nave the effect of materially Strengthening
our financial relations with Europe
Should the election result in the choice of a
SOUND money president and house of repre-
sentatives, this wholesome situation of our
foreign relations is likely to be further i'm
proved by a revival of the foreign demand
for our investments upon considerable scale
and by general improvement of American
credit abroad. 1t is therefore no violent
straining of the probabilities of the situation
to hope for state of things which before
the close Of 1896. may. materially add to our
national stock of gold. = Should that pos
sibility be realized, twon important results
would be gained. In the first place. the influx
OF gold would materially strengthen the re-
serves of the New York banks; and in the
next place, with an enlarged supply of gold
1t would become easier to place the treasury
the continuous drain of gold for export with
has embarrassed it since 1S93-the condition
which above all others is needful to the
restoration of foreign confidence in our credit
and investments. Amid so many uncertain
ties surround the present situation,
venture no predictions; but at the same time.
fair Interpretation OF symptoms and tend
encies now coming into view suggests prob
ability that the two closing months of 1896
may witness recovery in the financial situa-
ton which at present is not anticipated In
the present condition of the money market,
these tendencies may not afford a sufficient
reason for any free buying Of securities: but
why holders should decline to realize under
apDrehensions Of trouble to come
The course of the market Is in further evil
dence that liquidation is about over. Some
of the big bears have not yet covered and
doubtless continue to obstruct pronounced
their outstanding contracts such buying will
be an important aid to the bulls in marking
up prices. Stocks have changed from weak
to strong holders.