The morning news. [volume] (Savannah, Ga.) 1887-1900, 1896-09-28
Total since Aug. 1919, 1888, 43s

AONaA HlhNt aug. is9tJt 100 100 AoftVqfs Oo1
Here is an increase in only the leading
exports. for the last seven weeks, of $15,-
100000 as compared with last year; while
the imports at New York for the same
seven weeks of $17 $50 less than in 1895;
these combined items making the trade
balance 1872, 100000 more in our favor than
1t was for the same weeks of year ago,
or at the rate of $245 100000 a year. More
striking evidence of a broad and funda-
mental change in our commercial and
financial relations with the outside world
could hardly be conceived possible. I'm
der ordinary circumstances, the drain
upon European stocks of gold which this
movement is producing would have caus-
ed our securities to be sent home in par
tial settlement of such an important bal
ance. But on the contrary, London is
now clnging to our securities while con-
soils and other home investments are fall
ing price quite severely. What more
could we ask for the restoration of conf
dence? And yet so little are these facts
appreciated that the bears" find II easy
to hold an upward tendency of prices in
continuous check. A slight decrease In
the earnings of two or three railroads or
any secondary affair is allowed to out
weigh factors of this fundamental and far
reaching significance. 1t seems impossi-
Bile that this sort of incongruity can be
maintained much longer.
AS was generally expected, the Bank
of England on Thursday made a further
advance in its rate of discount to per
cent. This action is evidence that the
bank believed in its ability to divert the
gold drain more or less to some other
center, and its view is confirmed by the
fact that the Paris rate of sight exchange
on London Immediately advanced. To
New York, however, 1t Is immateral
where the gold comes from. 1t is suffi-
cent that a situation exists in our trade
balance which legtimateiy calls for the
importation of a large amount of gold,
| and that II therefore must come, unless
! foreign holders of our securities can be
| induced to send stocks or bonds instead
of specie; which, with the present grow
| ing confidence in them shown at London,
seems beyond probability.
During the Barring panic I'm 1880 we
| shipped during seven months, SIS 000,0 900
| gold to England, because the conditions
called for 1t, and it finally gave financial
| relief to London, and aided immensely In
! stopping the panic Now we want gold
on this side, and 1t would not be at all
! surprising if we should draw as much as
S78 100000 from Europe before the current
| turns again in favor of an export of the
precious metal. As above shown the
| trade balance is now, and Is likely to be
| for some time to come, largely In our IA
| Vor which makes the current of gold this
way a genuine one. This has been pro-
| duced by forced economy which has les
sened our imports, while our exports for
some time past have been increasing.
Freight room of every description has
been taken up to next December. Last
| week alone the exports of -four and wheat
| were equal to 100000 bushels Corn and
all other food products, petroleum and
cotton are also going forward very rap
| idly As showing the ability of Europe to
ttfatf
1t may be cited that Great Britain, France,
Austria and Russia added to their gold
holdings during the year 1895 $l89, 900, 900.
The money market is gradually work.
ing into an easier condition. The west
ward movement Of currency appears to
have reached its elimination and the
shipment in that direction for the past
week show the beginning Of reduction.
Meanwhile, the influx Of gold continues.
which, whether retained by the banks or
exchanged at the treasury for green
backs, helps to strengthen the legal re-
serves. Between the future importations
of gold and the, return Of money from
the west, we may expect a comparative
plethora of money at this center later
in the fall. The banks, perceiving this
tendency, are beginning not only to aug
ment their discounts to their customers,
but also to buy the better class Of paper
more freely, which is a very helpful re-
lief to the mercantile community.
Under all the circumstances, I can only
regard the situation as being much more
hopeful than might be inferred from the
present temper of the market, and look
for an early end to the supine federation
at present shown to the bear" element.
The situation affords an opportunity to
investors which they may not see again
for years to come; and buyers for shorter
periods are not likely to find reason for
repenting judicious purchases OF sound
| stocks.