New-York tribune., 1896-10-25

inv c,nrE TO THE TnIBUNE.1
ro,dor Oct o4--The best explanation OF tns
advance IN the bank rate to per cent. whicn
,,,s ovrootod last week hut has surprised the
money market this week. is that 1t IS due 10 tue
,arge increase in the purchasing power OF AmeH-
o.r uheat While the gold exports TO Amer'c~
ho,a heen large this week, it has not pee"
thoueht likely that they would continue sihce
largo nroportion Of the wheat and cotton crops
has already been moved and paid for. Inc sre"'
rse in wheat has increased the purchasing power
~ tho United States in the English money mar
ket to such an extent that large exports vi s"'N
are now expected in settlement OF the re"'"''''.e
shipments The per cent rate is no" a'o"e",
a precautionary measure to protect 'he Dom
rr,,ord,s cold reserve and prevent its further
danIetion. With the demand for American wneas
so graot nc II is now, ard with the prices OF
breadstuffs advancing by leaps and bounds'" -
not probable that even the high BANK ra'e wiz
bring gold shipments 10 an end Europe mus' pay
for its imports either in gold or IN Americas"
bonds. and the latter are already rising with the
increasing prospect Of McKinleys e'ec'ioh' anu
are likely to go higher In November.
The wheat markets of London and Liverpooi
bovo lahored under q continuous excitement our
ing the week. Many stories are told OF QUICK
ator who was unable to obtain his limit Tor thres
orgoes one night sold them early the next
nir, ot an advance Of :}s.. increasing MS
Drodts s,3 600 by waiting twelve hours Anotne"
snacu,ator buying a cargo of California wheat
,a.e one afternoon at an exceptionally hisn rate
sold il the next morning at proht OF S''"'o'
ANYTHING in the shape Of wheat was snapped up
as soon as offered. without reference u It's u.s..
or quality The rapid rise or whea' p'o"e"'
many weak spectators into the market ""e,
nrices were at the top and they hastily retrea'eo
when slight reaction set in
Tho advance in price is the greatest mercy
which English farmers have enjoyed Tor many
wears Most of their crops failed TINS season.
owing to a drouth Of long continuance ou'
their wheat was saved. ard Is now bringing
the best prices known since the Russian ia"'"ie'
The causes OF the advance are recoshi"eo 10
shortage in the American and RUSSIAN crops'
threatened famine in India. the partial failure
! of the Australian harvest. and the low stocns
held by English and European millers Eng
,,sb ml,Icrs have been buying just enough
wheat from week TO week to keep their m'l's
going and they arc row compelled to pay the
hiohest prices for repienishng their STOCK. roF
! this reason a speedy rise in the price OF preao
is NOT unlikely The surplus OF wheat WHICH
can be exported from Argentina Is estimated "
experts at 1.200o0o tons. -.
The English theory that gold shipments VIII
cease after McKinleys election is pased ON 'ns
assumption that an immense amount OF go'o %
now boarded In America in view OF a poss"'e
financial catastrophe in November. nameiy.
| Rrvan's success: and that when this is released
there will be a plethora of money in New-fork
| and no more gold will be required. Ih's as
sumption takes note Of the essential fact tnat
the gold shipments have resulted from natura'
causes, and that the balance of trade Is certain
to be heavily against England and in favor OK
| the United States.
| Bryan's election is no longer regarded "
well-informed fnanciers as being within the
range OF probabilities but it Is feared that NC
Kney may win by majorites so indecisive az
to prolong the period of uncertainty. The
Ecoponist' to-day asserts emphatically that
the return Of Mckinley with sweeping RepuD.
lican vote will restore confidence and revive
American trade. and that American securities.
of which British holdings have been greatly re-
duced, will again find favor on this side. ana
that with increased purchases OF these stocks
the English debit balance TO the United States
would be enlarged.
The settlemt mt OF the Venezuela question.
which is considered not only probable but I'M
minent in consequence OF Sir Julian Paunce-
fote's instructions from Lord Salisbury. Will re-
move the last traces Of resentment caused py
Mr. Cleveland's December message and help 70
swell the speculative movement, in American
securities.
Spanish securities have fallen sharply this
week and the prospect for the new loan which
the Madrid Government are attempting to nego-
tiate is darker than ever. Paris is almost the
only financial centre where money can be raised
by a bankrupt Government. and the Canovas
Ministry have been warned that II they want
more money they must change their cuban
policy and substitute paciflcaton for conquest
The new loan which the Government are seek
ing to induce the French syndicate to take u
for 5000 OOOOOO but 1t will not yield more than
$50 OOO 900. owing to the heavy discount Ihs
funded debts Of Spain and Cuba exceed $l'ooV.'
OOO 600 and there Is a floating debt OF nearly
| S1 20 600 900 NJ Leroy Beaulieu has declared
that French investors will not advance any
more money to the Madrid Treasury unless q
pledge be given that the excessive military ex'
nenditures in Cuba shall cease. This will IN
volye the abandonment Of the Cuban policy. and
the Canovas Government not prepared Il
take a step which may imperil the existence o.
the Spanish monerchv. The Spanish debt Is nov
held mainly in France and Belgium. togethei
with the chief railway issues. THE Spectator
! remarks to-day that many statesmen In Madrit
e are inclined to calculate that war with tn
United States would save the honor OF Spain
enable the treasury TO liquidate its obligation
t without disgrace and relieve the monarchy OF tn
!. burden OF ruined colony. French and Belgian
t anancers can hardly be expected to take tina
l view. II they are reluctant to lend money 10
a the suppression of the Cuban rebellion. the!
i would be even less eager to provide ways ant
e means for war with the United States.
IF has been q week Of anomalies and para
;, doxes. An influential mass-meeting has beei
" | L. opdon To nrofest against gOYernmen