The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1897-05-12
Lombard Street Does Not I'M
derstand Gold Shipments
Now Going on From the United
States.
TRIES TO EXPLAIN 1T.
Believes That Japan is Getting
the Yellow Metal.
Imports Not to Be Paid for
Three Months.

London, May 12.-Lombard street is
puzzled and confused by the shipments
of gold from New York. These ship
ments are not required for the payment
for wool or other merchandise exported
from England to America last month
InoSe exports Wilr not be paid for until
the three months bills drawn against
them are due The balance OF trade is
not ma terially affected by them, espec-
laIIy as the exports from the United
States have remained high and have
exceeded the imports. The export of
gold from America under present cOndi-
tlons OF exchange is Improbable and
cannot be explained by ordinary COM
mercial requirements
It may be due to the fact that coun-
tries needing gold can get it with less
disturbance to monetary conditions
from American than from any other
quarter. During the last month all the
aVa1la bic gold in open market in Lon
don has been sent to Japan, which re-
quires many millions for its new coin
age
The gold balance Of the Bank of Eng
land has not been reduced, but WhateV-
er gold has been received from the con-
tinent and South Africa or America
has been snapped up and sent TO Japan
If large additional shipments follow
from America it will be because Austria
in carrying out it's fiscal policies needs
gold and finds it more convenient to or
der it from New York through French
or English bankers than to get it from
Paris or London at the risk of raising
the rate Of interest in those capitals
and producing more or less financial
disturbance
This is one of the dangers to which
American finance is exposed under eX-
isting currency conditions. If Austria
Russia or any other nation needs gold,
it can order it from the United States
without reference to the balance of
| trade and can get it without tightening
the money market in any European n
capital or discrediting any line of ma
uOnaI or industrial securities. American
securities can be sent back in exchange
for gold, and this transfer can be
brought about without regard to the
normal conditions of trade between Eu-
mentS are reported to have been coun-
| fernandez, but additional exports from
New York are expected by London
| bankers. The Facility with which gold
| can be drawn from America to suit the
purposes of European governments is
| a strong argument in favor of radical
| currency reform.
The markets features have been
abundance of money and an indication
that rates will continue easy. This may
| be largely due to the fact that over e.
100000 have been paid into the bank of
Japan; but the prOba bility is that there
will be a further fall in the bank rates
| The 1essening of the risk of a general
war in the Balkans has brought a bet
ter tone into the stock exchange, while
the cheapest of money helps also to
force prices upward
For the moment business is confined
for the most part to professional opera
tors, but if the political clouds in
southeastern Europe are dispersed the
public will begin to buy and a profita BILE
rise in prices VIII soon follow.