New-York tribune., 1897-08-18
rOBEIGN DEALINGS ~ SECt RITES


Discussing the state of exchanges between
this and other countries on Tuesday. IL was
shown that on merchandise and specie account
The United States stood practically clear OF Ill
debt cdncss on August |. even AFTER alioWInE
% per cent for undervaluation of duliable III
ports. With til, heavy excess OF exports III
August it appeared that gold imports We're ""'
already and were prevented only hy payment
of unusual premiums for gold by foreign "o'-
ernments But in that computation the paiahce
on security account was not c0ilsldered' hoT
were data given for any estimate 1t is eSpe
ciallv important at this stage OF fnancial ar
rangelnen,s for the fall TO give some attention
10 that branch of the question. because VIII
and extravagant estimates both ways are con
s,an,ly offered TO influence opinion regarding
the course Of the stock market. 1t * wen
known thar sales of American securities on ior-
eien account have been almost wholly ol Stocks
and when such sales have exceeded purchases
rho fac, has always been exploited in order TO
re,ard the restoration of confidence IN ms
market.
Ru, il is a wellknown fact that the great
majority of foreign investments in American Sc
curities are in bonds, National. municipal ana
corpnratc and that foreign holdings or rallwa!
bonds far exceed at all times foreign holdings
of stocks. in which the distant investor natn-
rally takes less interest. rs he has little oppor
tunily Of controlling management Ihe bohdeu
investments have been without doubt over tWo-
thirds of the whole. and these are held 10
large extent by permanent investors, VINO 90
not change with fuctu1tions in the market
But II is also well known that the market for
bonds OF all kinds has been running strong
during the last five months. continually sns-
:ained by heavy purchases and by considerable
purchases on foreign account during all That
period.
In a few conspicuous instances enormous
blocks Of railway bonds have been placed with
ease and at rates unprecedentedly low but al
ways through houses having large foreign con
nections What proportion Of these great issues
has been taken abroad cannot be known, but
no one doubts il has been considerable More
over the perpetual buying Of bonds in the Ex-
change has been in part on foreign account.
out Of several hundred millions worth of bonds
sold IL would be small and safe estimate 10
reckon a tenth as probably taken by foreigners.
But the sales of municipal bonds have also been
remarkably large. published table shows
that sales in seven months Of 1881 have amount
cd 10 Sl06.5Oo.0 900. against S0Jo000O in The
same months last year. or This large amount
also A considerable proportion has gOn" abroad.
rs is clearly shown by the bidding in some con-
spcuous cases. Thus the balance as respects
bonds has unquestionaby been largely on the
.de Of purchases on foreign account and while
exact estimates are not warranted the excess
o. purchases over the rare and comparatively
insignificant sales must amount I" many mill
iOns.
But the transactions in stocks are NOR" large"
~ speculative. The kind of buyers ana holders
broad Is different, and their readiness 10 sell
NJ n moderate advance has been notorious fol
many years Europe always sells stocks after
great movement gets fairly started, ana then