The daily morning Astorian. [volume] (Astoria, Oregon) 1883-1899, 1897-03-12

selling kafin. weakness In cons0ls
ana an advance In the market rate Of
interest. These are matters Of some
importance 10 wan street. but. 20 far,
they have been unattended By any mo-
tlcrqble return OF our securities; nor
does IL appear reasonable 10 expect any
such effect except under more serious
foreign conditions than nov exist and
which might be attended with neces-
slty for procuring gold from this side
the Atlantic. for. the more political
troubles endangered the value of Euro.
pean government securities. the more
would foreign investors seek 10 invest
IN the issues of great country exsmpt
from th" risks of foreign politics.
During the past week an important
negotiation has been contaminated
her. which has the appearance of hav-
INK been Influenced by motive Of that
kind a syndicate consisting chiefly
of foreign bankers here and IN Europe
on Tuesday agreed win the Lake
Shore and Michigan Southern Railroad
Company to take 50.0O0.OOo Of 100 years
80 pei cent bonds ~ that company at
i02is. the proceeds Of which are 10 be
devoted 10 the liquidation Of the com
pnny's per cent bonds maturing be-
tween 1888 and 1903 The significance
of this transaction. In the connection
above indicated. Is that a. considerable
portion ~ this issue is expected to
fnd permanent resting place among
European investors. Al the same time
su"h - large negotiation at 80 low
a rate as 7-l6 per cent net IL calcu-
lated 10 affect favorabIy the credit
Of our railroad bonds In other coun-
tries.
An event which is attracting some
interest In Wall street Is the adoption
OF the gold stardard by japan. upon
the basis OF % i-3 weights OF silver 10
weight of gold. the silver being val
ued at about the present price OF silver
bullion As Japan hhs been losing her
gold by export for many years past.
her present stock II comparatively
small She may. therefore. be expect
ed TO require probably not less than
s5Oooo.OoO TO seo,OOOOOo OF the yellow
metal to establish the new coinage As
the change Is to be effected gradually.
It's importation will also. probably. be
done gradually. indeed. as the coun-
try's foreign trade and It's foreign or
ders for war ships are now leaving
almost no excess Of exports over i'm
ports to he drawn against and as japan
cannot borrow abroad. it Is not clear
how she can possibly accumulate the
needed gold otherwise than gradually
However. Il Is not yet reported whether
she intends 10 keep some silver for
subsidiary currency or to dIsplace il
entirely by gold and paper money; II
the latter she may procure some con-
siderable quantity of gold through SELL
ing silver abroad, Also. she has still
an important sum on deposit In the
bank OF England, probably $40. 900 O0e
to $45, 100000; but whether that Is to
be reserved for the procurement OF
war vessels and munitions Of war or
may be called home remains to be as
certained II is safe. however. 20 con-
clude that In one way or another a
considerable sum Of gold win have TO
be procured from Europe or from this
country-probably from both sources
only this week IL Is reported from Lon
don that Japan contemplates sending
silver tn the United States, which OF
course would mean in exchange for
our gold, The metallic reservs"-al-
most entirely silver-held against the
paper circulation ranges from SO In 20
millions Of yen Tor 40 to 30 per cent
of the outstanding notes.; and 1t would
seem that all OF this, being inactive
money could be spared for the pro-
curement of gold This operation is
/ to be regarded as tending to exert \
steady pressure upon the European
money market for some time 10 co ne.
Alongside OF this Eastern demand for
/ gold. We must expect to see Euro
pean outflow to Russia In come zion
with the readjustment " her currtnc
system, and with her loans FOR the
construction OF the Siberian and Ch'-
nese railroads; that demand, however
is likely TO be felt first Of all in Paris.
siderable Eastward drain upOn the t.u.
ropean gold stocks. with an Nh Gus
future effect upon the rate for mqney
Their immediate bearing. however, i
less obvious. HENRY GLEN :.