The herald., 1897-04-25
OFFICE OF THE HERALD.
LOS ANGELES, April ~.

three commissioners to an international
monetary conference has been received
with a certain Indifference in eastern
financial circles for the reason, chiefly
that there seems to exist considerable
doubt as to whether the conference will
ever be held. and that at any rate 1t
can only become a disturbing element
in the nations affairs in case the looked
for business revival should fail to ma
teriaIize during Mr.. McKinley's admin
istration.
The rise Of the gold balance to over
S164, ,0oo, 900 shows a vastly better condi-
tion of the treasury than there was any
reason to anticipate some months ago,
and the prevailing opinion appears to be
that there is a fair prospect for getting
the government finances in a shape
where the cry Of alarm need not be
raised.
"A leading financial authority says OF
the conditions prevailing at the large
financial centers that there is very little
ohanNe of a favorable character. In Lon
don the Bank of England rate remains
2M per cent, and the open market rate is
about half that figure. There has been
a good deal of agitation in the London
stock market growing out of sharp
decline in Kafirs, and some start
ling reports of impending failures were
af1oat. Americans were in little more
favor than usual, largely on account OF
the New York Central funding scheme.
The London money market refuses 10
take fright at the Cretan situation. Or
feriugs of securities for subscription IN
London the first quarter of 1897 were
R2s.115, ,60o against s30,925,0O0 for the
corresponding period of 1896, but there
was an unusual preponderance OF un-
desirable industrials and 1t is thought
that the subscriptions were only small
fraction of the amount offered. The
largest item in the list is G3,614,00o for
breweries and distilleries. the next E3.-
583. 900 for bicycles and appliances, and
the next G2,53O000 for mineral water
companies. In New York the demand
for money is very poor, but rates do not
and per cent and upward for time. The
stock market. the fluctuations OF whlcn
now have very little meaning to outsid-
ers, absorbs comparatively little capital
The general situation is summed up as
follows: Since the outbreak of the panic
in 1893, the one important question to
everybody has been when the liquida-
tion would cease and the country would
be on solid ground, 80 that the creative
work could be resumed. AS one sur
veys the whole field now, he sees no
events of great Importance, either IA
vorable or unfavorable, but there are
evidences innumerable of recuperative
process, which is making toward pros
perity. The process is slow, however.
1t will bring us constantly to better
and better position, but there Is no
reason to expect that it will work out
into general activity for monthsyet, and
the autumn is the earliest time when we
can expect a general recognition among
business men of decided improvement.
So far as the manufacture and distribu-
ton of merchandise are concerned. the
is 90 gradual and so well
distributed that very many people have
failed to recognize it, and the test stat
istics, such as the money market and
the bank clearings, show changes so
small as not to be worthy of notice.
In an Interesting article upon the rath-
er surprising character of the informa-
tion that has leaked out concerning Rus
sia's gold hoard, the Economist says: So
high an authority as Ottomar Haupt
states that the Imperial Bank of Russia
now contains the greatest amount of
gold ever held by any bank of the world.
Hc finds the total to be s12, $50. 517 rubles.
which is nearly $3.50, 900, 900. This ismore
than two-thirds the total amount Off
cially reported as held by the banks of
England, France, Germany, Austria
Hungary, Spain, the Netherlands and
Belgium. 1t is nearly as large as the
amount of gold supposed to be in this
country at the present time appropriate
ed to monetary uses. 1t is about the
same total that has been estimated as
the entire gold stock of Russia. One
must conclude therefore, that practical
" the entire gold supply of the Muscov-
ite empire is in control OF the Imperial
bank. which is, indeed, natural, in view
OF the Well-kHOWH ldcl tHdl DusliltsS III
Russia is not conducted on gold basis
vet. It is a matter of much surprise to
European experts that the Imperial
bank has accumulated this vast amount,
for the gold resumption scheme does not
require such a large quantity. Nor does
# appear that anything more than the
normal course of trade has been de-
pended upon to secure this accumula-
tion. OF this total, SS, 343, 900 rubles is a
tho mint and on deposit in other coun-
tries, Russia having pursued the policy
for some years past of keeping large bal
ances at the financial centers of West
ern Europe. 1t is significant that of
Russia's hoard, S0,005, sos rubles' worth
is in American eagles. That is where a
lot of gold that we have been parting
with for some years past has gone. In
addition, there is 113 ,G37, ,O96 rubles in
foreign bare, some of which unques-
tionably came from the United States.
Russia does not have to depend to as
great an extent as is usually supposed
on importations for her gold supply. The
production in 1896 was $31 002 $40. Rus
Ella standing next to the United States,
Australia and the Transvaal in the VOL
ume of her gold output. These facts are
among the large number constantly be-
coming known, which indicate the In
creasing power and influence of Russia
among the nations of the world. It used
to be thought that the accumulation Of
gold in the Golfers of the Russian state
bank was in pursuance of a military