The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1897-05-03

Banker Clews, of New York, in reviewing
the financial situation, says: THE sudden
starting up of exports of gold, though not
entirely unexpected, has rather surprised
Wall street by the largeness of the amounts
of the shipments, the sums shipped and en-
gagged for shipment up to next Tuesday be-
ing 81. 900. 600. This movement is incidental
to the state of the continental markets.
Paris has been a large seller of Kaffirs at
london, and Vienna is a free buyer of the
metal for concentrating the Austrian re-
sumption scheme. London can meet these
demands at a good profit by drawing the
gold from New York. Yet, looking at the
figures of our foreign trade, it is not easy
to find any conclusive reason for expecting
that the outflow will reach really impor-
tant dimensions. The official returns show
the imports and exports for the nine
months ending March 81 to have been as
follows:
Merchandise ........... .SS2Z, zoo, 900 $49o, 800, 900
Gold .................. IL, 10O,0N 1860 ,UU0
Silver Northumberland. 46,6O0,OO0 6,600,0O0
Gold and silver ores .... 1,100,OW Id, 3OO,UUO
Totals 1886, 900, 900 $603, 400, 900
Balance of eXports....... 2Sl, 6O0,0W .......-...
The movement in merchandise and the
precious metals thus shows an excess OF eX-
ports over imports amounting to S2Sl, 500, 600.
If we charge ourselves with l2O,OOO,UO as
the net debtor sum accruing on interest
payments, travellers credits, freight and
passenger charges, immigrant money, out
lays OF foreign vessels IN our ports, etc
which is certainly a highly liberal allow
ance-there viii still remain over $160, 0O0, 600
due to us on this nine months balance. IL
this balance has been eXtlngulshed there is
no way in which it can have been done eX~
cept through the return home or our Sc
curities ana the withdrawal OF foreign cap
ital finding transient employment IN various
ways in this country. And yet, While such
Offsets are acknowledged to nave arisen,
perhaps few foreign bankers would be will
ing TO admit that they have amounted to
any such important sum. 1t has been COM
monty conceded that about $2O,OOO,OOO worth
of stocks and bonds We're returned lmme-
diately after the election; but 1t mas been
generally supposed that, outside that item,
the exports or securities for the nine months
have about equaied the amounts retuTn 9e
home. The question then arlSes-Was $l4O,-
OOO.O coo of foreign capital-employed mere as
bankers balances, on mortgages' on COM
mercial accounts, on industrial UNDERTAKE
ings, etc.-withdrawn to europe dur
ing the violently strained state
of confidence created by the
BRYAN campaign? 1t seems, in the face of
these facts, that unseen operations OF this
character did actually occur 70 an extent
more or less approXimating that eXtraor-
binary sum. And yet 1t IS not entirely
necessary to charge the whole of this large
sum TO that account. The abundance OF
idle home capital which has Turing late
months led to the employment of some fifty
TO sixty millions of dollars in the eXtraor-
binary purchase of export bills, is now,
that such operations are no longer profita-
bic. finding employment in providing for
cash payment for a considerable portion of
the large amounts of imports that are ar
irving in anticipation of the advance tariff
duties. This is especially the case in re-
spect to the imports of sugar and wool; in
regard to which it is perhaps more than
safe to estimate that $25, 000, 900 has been
thus paid. l am disposed to regard these
a~nticipatory payments for imports as hav-
ing much more TO do with the exports of
gold than ordinary trade causes. But, of
course. these liquidations in advance of the
ordinary usage will correspondingly tell in
favor of our trade balance three or four
months hence.
The general condition of the country
must. with fair allowance for special incl
dental circumstances be regarded as pre-
senting a hopeful outlook. OF course, until
the new tariff bill is disposed of, manufac-
lures must be, to some extent, held in
check, and imports may be expected to be
large. These conditions are abnormal and
produce some temporary arrangements and
a good deal of grumbling; but. when the
tariff takes effect. the imports will moder-
ate and there Will be a sudden increase of
activity in the industries to compensate for
the now postponed production. In The
meantime, the retail trade appears to be.
for the most part, in a healthy condition:
and the jobbing trades therefore cannot
have much reason TO complain, except