The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-05-03
,rs,n11,s ABSORPTION or COLD.

nrcccc and Turkey continues, and will probably
M, end until ono or tho other Of the combatants
ia exhausted, or until tho Great Powers, who
hoyc 40 mystcriously permitted the conflict to
h.ein. interfere, for equally mysterious reasons,
N atom it. In addition, gold 10 beginning to DO
.,por,ed again to Europe. These facts have
had a depressing influence upon the stock mar
bet. limiting transactions and lowering prices.
prycrs hold aloof and sellers have to tempt
,brm BY reducing their demands. To this gem
arol remark an exception must be made in favor
~ standard Oil certificates, which, upon rumors
~ ,nproaching large dividends, have risen to the
highest figures they have ever attained.
Nevertheless. the Tariff bill Is bound 70 be
,osssd sooner or later. and. in anticipation Of
/, inporters have been hurrying In goods and
,hrs swelling tho customs receipts. The result
Ia n rcplenishment Of the Treasury, which hos
,,rc,dy reduced the years deficit from $50, 000,.
ooo to 500. 600 900, and effectually obyiated the
feasibility OF the Governments being obliged to
sell bonds to meet its expenses, rs 1t did under
the previous Administration or that its $780,.
900 600 of gold will be reduced to anything near
,he SloO, 600, 900 danger limit fixed by q false
public sentiment. As to the war between Tur-
hey and Greece. that, too. as has beon said, must
A TO an end before long, either from the ex-
haus,ion Of one or of both the combatants, or as
the result OF foreign intervention.
The export OF gold is an unfavorable symptom,
rather because it indicates an absence Of that
activity in general business which so many de-
plore than for any other reason. This country
nroduces gold, Just as it produces wheat and
cotton. and II consumes in the arts and In
manufacturing less than half its product. Its
needs for additional coinage have, OF late, been
small. so that 1t has had annually $50. 900. 900
at least TO spare for export. Moreover, last
wear its net imports of gold were $50. 900. 900.
Thus the Treasury and tho banks are ovorsup-
nlied with the metal. and can furnish It more
chcanly and easily than it can be obtained else
where. That under these conditions 1t should
20 abroad should not excite surprise.
The immediate cause of the draft on this coun-
fry for gold seems to be the demand for 1t by
Japan. Russia, and Austria. The 500, 700, 900
which China paid to Japan were deposited,
when they were paid. to the credit Of Japan in
The Bank OF England, and all but SIC, 000. 900 Of
IT has been used by Japan in purchasing war
material in Europe. Now, Japan Is about to
establish her currency on n gold basis, and, 1t IL
said. will carry homo this remaining $4,000
600 to enable her to accomplish her purpose.
As to Austria, 1t was announced in London two
weeks ago that her Government was buying
gold there for resumption purposes, and on tho
sVln OIL April lUt Chu NoilNoloiuCht "a WV
London Economist wrote to that journal that
the Austro- Hungarian Bank had purchased in
London 100000 forms, or 81, so0.o 900 worth
OF gold. within the previous three weeks. He
adds that Austria would have taken n larger
amount than it did from the Bank of England IL
Japan and Russia had not applied at the same
time. This gold was paid for with the proceeds
OF Austrian Exchequer bills sold in London at n
profit which more than covered the loss on the
gold at the premium paid for 1t.
1t will be five years next August since Austria
began the work OF reforming her currency. and
OF preparing to resume in gold the specie pay
ments which she suspended nearly half a CEN
fury ago. The revolutionary uprising in Hun
gary and in Italy in 1s4S, and the expenses OF
suprrcssing them, bankrupted tho empire. Be
fore it recovered its solvency, a war ensued with
france in 1859. resulting in the loss Of the Ital.
Ian provinces, and, in 1866. another war with
Prussia. in which Austria was defeated at Sa.
dowa. The consequence OF all these disasters
was that the Austrian currency has. for fifty
years, been one of irredeemable paper alone upon
which the discount, as compared with specie,
fuctuated until lately between 8 and 20 per
eent5@ Before 4s4S the standard of vaiueSyas
silver. and. rs q step toward resumption in that
metal, the Government in 1879 suspended the
coinage OF it on private account. This intro
drced a new comnlicstion into tho currencv of
the emnire si,ve- coins being worth like our
d,l,ors. more as coins than thew were as bullion
and the paner money varying in value. as com.
pared with gold. NOT according to the ratio be-
tween silver and gold. but az 1t was affected by
local financial causes.
To remove these comnl;ca,iop and tn nlace
their currency unon n cold basis the emn;re NJ
Austria and the kinpdom NJ HUNGARY which
for all sucb pnrposcs. constitute one nation
adopted on Aug. Q. 1899 n Joint scbeme FOR re-.
placing with gold coin the paner money of the
Government. which then amounted to about
$4,000 600 in our money and thus indirectly
for compelling tho Austro-Hunoar;an Rank also
TO resume navment in cold Tn nlaco ~ III. ola
unit OF value. the form. which. nrior IN 1919
was worth so cents in our money. hut which in
paper had settled down to about 40 cents in
gold. a new unit called the crown was adopted
othalf the value OF the aorin. or, nav abopt %
cents in gold. It being provided that until the
new currency was ready for distribution the eY.
isting silver and paper forms should zach he a
legal tender for TWO crowns.
The agreement between Austria and Hun.a-v
further provided that 70 ner cont ~ ,h. oo,d
needed for the contemplated reform sborId be
furnished by Austria, and the other an ner cent.