The times. [volume] (Richmond, Va.) 1890-1903, 1896-10-18

until the currency question disturbed our
monetary relations. there WAS regular
movement of gold to this country I'm the
late summer and autumn while We were
marketing our agricultural products
abroad. A return flow from this country
abroad began in the spring and continued
through the early summer TO pay our
debts for imports and for other purposes.
Low exchange rates in the former ana
high rates in the latter periods caused
these movements and the balance or
trade was usually I'm our favor, az 1t
is at present. The excess Of merchandise
exports over imports for eight months
up TO the first day Of September OF this
year. amounted TO $9J,J9l 94j while for
the corresponding time last year the ox-
cess of merchandise imports over ex-
ports was $40 26726S. In other words. in
stead OF dishursing this latter amount In
foreign markets. we this year are re-
ceiving from them ssj.9s7.9i5, balance in
our favor Of Sli2.G52l3. Moreover the tide
of securities flowing back TO America
from foreign holders since 1870 has large
~ subsidcd. at least Tor the time being
and there IS not as much Of a drain from
here on that account. The high rate OF
interest paid i'm the New York market for
call loans during the past few weeks has
attracted foreign capital from centres
where the interest rates have been much
lower. This popularity was laso very
marked during August of 1893. az the
height of the currency panic. when the
ruling rates Of interest were abnormal
~ high and large amounts of money We're
loaned from abroad and the gold coin sent
10 this country. The contraction I'm the
active currency IS caused by the large
r..tf.
States Treasury arising from the bond
issues. and from the boarding of gold
and Of notes redecmable i'm gold. whicH
has been going ON among the people for
some time. in view OF n possible failure
Of the United States 10 continue their
redemption I'm gold. The critics who talk
so freely about importing fifty millions Of
gold for effect from the other side Of the
ocean do not seem 10 realize the import
ance of such a transaction and that there
must be value exchanged for il. either
i'm the shape Of exports or securities or
I'm some other way. 10 viii be seen from
the sublished names OF the parties who
receive the gold imported that they are
mainly the dealers I'm exchange or
houses. or institutions. having foreign
connections. and that the national banks.
except as institutions 10 receive the de-
posts az their customers. are not at all
Interested. except in the case OF one
or two of the larger. who have regular
London correspondents with whom they
do an exchange business. II must not be
forgotten that the confidence i'm the situa-
ton. which has placed the country IN
it's present satisfactory condition regard
Ing, its gold reserve was largely due 70
the efforts Of the bankers of New York
liz the early summer. Tho fact Of their
agreeing to furnish bills Of exchange az
rates under the gold shipping point and
to bring about artincialiy.
that which we now know is % logical re-
suit from natural causes. inspired so
much confidence that normal conditions
prevailed and the situation cured itself
According 10 the published reports our
ing April. MAY. June. July and the hrst
week I'm August while gold was being eX-
rortod the rates of sterling sight eX-
change mt New York have ruled from
4sS1-e TO 4q01-4. and during the last o.
August and mp TO the present time Whii-
imports Of gold were being made they
have ranged from iS3 "a 20 fNj b.
If the parties attacking these transac-
.iors would examine the daily reports
and SOC who Withdrew or Imported INC
gold. and what the exchange market was
and why the exchange rates were nlsh
or Love much misanprehcusi0n on these
subjects would Doe avoided
Yours very truly.
W. T. CT-RTIS.
Washington. D. c.. oct. II. 1895.