The L'Anse sentinel. (L'Anse, L.S., Mich.) 18??-current, 1896-10-24

purchases of government bonds were be-
Ing made. but for this a premium was
paid and II was purchased and shipped
like cotton or wheat without regard to
the rates OF exchange ruling here. and was
an abnormal proceeding.
Balance of Trade Favorable.
During the years succeeding the re-
sumption of specie payments and until the
currency question disturbed our monetary
relations there was a regular movement
of gold to this country in the late sum
mer and autumn. while we were marketing
our agricultural products abroad A re-
turn flow from this country abroad began
I'm the spring and continued through the
early summer to pay our debts for imports
and for other purposes. Low exchange
rates I'm the former and high rates In the
latter periods caused these movements.
and the balance OF trade was usually In
our favor, as II 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 $95,997, 945. while for the corresponding
time last year the excess of merchandise
Imports over exports was SAG, 1867 PCS. In
other words, instead of disbursing this lat
ter amount in foreign markets, we this
year are receiving from them $95 1854, 945, q
balance In our favor of S142, 375. 21S. More
over. the tide of securities flowing back to
America from foreign holders since 1890
being. and there is not as much of drain
from here on that account.
1.-THE high rate of interest paid in the
New York market for call loans during the
last few weeks has attracted foreign cap
ital from centers where the interest rates
have been much lower. This popularity
was also very marked during August of
1898, at the height of the currency panic,
when the ruling rates of interest We're
abnormaliy high and large amounts OF
money were loaned from abroad and the
gold coin sent to this country.
1.-THE contraction in the active currency
Is caused by the large, increase in the bal
ance of the United States treasury arising
from the bond issues and from the hoard
ing of gold and of notes redeemable in
gold, which has been going on among the
people for some time, in view Of possible
failure of the United States to continue
their redemption in gold.
Movement of Gold Genuine.
''The critics who talk so freely about i'm
porting S50,000,000 of gold for effect from
the other side of the ocean do not seem to
realize the Importance of such a transact
ton and that there must be value eX-
changed for II, either In the shape of eX-
ports or securities, or in some other way.
1t will be seen from the published names
of the parties who receive the gold i'm
ported that they are mainly the dealers in
exchange, or houses or institutions having
COHltCtlphos kilal lilt llOIdl
banks, except as institutions to receive the
deposits Of their customers, are not at all
interested, except in the case of one or two
of the larger. who have regular London
with whom they do an ex->
change business.
1T must not be forgotten that the conf
dence in the situation which has placed the
country in its present satisfactory condi-
ton regarding its gold reserve was large
ly due To the efforts Of the bankers OF New
York in the early summer. The fact OF
their agreeing to furnish bills of exchange
at rates under the gold-shipping point and
to bring about artificially
that which we now know is a logical re-
suit from natural causes inspired SO much
confidence that normal conditions pre-
vailed and the situation cured itself.
According to the published reports dur
ing April, May. June. July and the first
week in August, while gold was being ex
ported the rates OF sterling sight exchange
at New York have ruled from 1881. to 1901.
and during the last OF August and up to the
present time while imports of gold were
being made they have ranged from 4SSs4 TO
1854,
IF the parties attacking these transac-
lions would examine the daily reports ana
see who withdrew or imported the gold and
what the exchange market was and why
the exchange rates were high or low, much
on these subjects would
be avoided. Yours very truly,
Wv 4. CURTIS"