The herald., 1896-12-06
Local, Eastern AMI Foreign
Commercial Dealings
WALL STREET SPECULATION
Manifold Fluctuations of Specie 10 the
German Bank
The N. Y. Post on Gold Movements.
Large Import of Gold-Management
New Hampshire Savings Banks.

The fluctuations which have taken
place in the circulation OF the German
bank during recent weeks are of some
interest The changes are as follows:
August 30, increase. $s, $40, 900; Septem-
Der 8, decrease. $76sOOO; September Is,
decrease, $2,450, 900; September 90, in
crease, $4,100.000; September 80, increase,
$40, 100000; October r. decrease, $12,000,-
900; October Is. decrease, SIG, 200 900, Oc-
tober 20, decrease $40. .0O0, 900; October 81,
increase, $4,000, 900.
The cause for last weeks strength in
sterling exchange is interpreted by the
financial writer of the New York Even
ing Post as follows: The particularly
active demand just now for sterling is
a result Of the unwillingness of holders
Of foreign bills to sell them in the pres
ent market. Much of the 'hoarded' ster-
ling bought on the eve of the election
still remains unsold. The fact that such
long sterling'-to use the Wall street
phraseology-is somewhat unexpected
ly withheld from market, has given rise
to the prevalent report that the sterling
market Is manipulated. This, however,
is entirely a needless inference. When
this exchange was bought money rates
In New York were 10 per cent or upward,
today's. The purchases would not have
been made but for the wish to invest in
something which assured gold payment.
The money was virtually loaned in Lon
don. Today the New York money mar
ket ie on a par with London. with ac-
commodations really easier here. The
sale of this exchange would have no ac-
tual result other than to transfer pre-
cisely that amount of capital from Lon
don to New York. in other words, to bor
row on the London market and release a
corresponding loan upon our market.
In view of the situation in these two
markets, it is not strange that bankers
should borrow in New York and extend
for the time considerable portion of
such sterling contracts"
The merchandise balance in our favor
for October is no less than $63, oil 1922 and
for four months, beginning July l, the
balance aggregates S132, OPS, ,000 1t is not
surprising that a heavy inflow of gold
should have coincided with the develop
ment of this unprecedented situation.
The imports of gold were stimulated
somewhat, no doubt, by the premium
which had existed in this country for
some time before the election. Since the
disappearance of the premium the gold
imports have fallen off, but the expecta-
ton that gold would return to Europe
after the election has not yet been real
ized, while the remarkable trade bal
ance emphasizes the unlikelihood of an
immediate reversal of this current
American Banker.
1T is often said" says the Keene On.
H.) Republican," that savings insti-
tutions are gotten UP for the benefit Of
the common people or the poorer class.
We admit that 1t should be so; but has
this been the case? Have not the saw
ings banks in this region in recent years
been started by stock companies for
money making? We would like to have
the history of one given that has not
been operated on such a basis. Have
not special efforts been made by these
corporations to induce the people to
make deposits of their earnings in them?
We have never known of the banks ex-
pressing great charity for the common
atty, further than to coax them to
place their savings in their hands. Per-
haps this was not true forty years ago,
but works prove it has been so during
recent years. In some instances ven
lures have been carried to rasher pitch
than In others. This explains why the
savings banks in the northern and east
ern parts Of the state are still in opera
tion; these have been more cautious rs
to mortgages taken and other securi-
ties"