The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1898-08-29
OUR STACKS OF TWENTIES.

r, RElOENl mention has been made of late &c
the commercial change which the United States
is now undergoing. 1t is wholly due to the
Spanish war, for it began year ago, though the re-
suits OF the have accelerated the transition AS
early as last year began to loan gold coin to Eu-
rope and have kept It up since Concident with
the broadening OF the countrys commerce through
our foreign conquests we find ourselves expanding
into creditor nation like England with funds to
loan. Up to year ago were known as debtor
nation, but it is doubtful whether this dubious dis
tinction will cling to much longer. For in spite
OF our free loans to Europe, we find the nfowing
stream OF gold rather vouminous for convenience
4 Treasury statement just issued shows this plainly
According to this statement the amount of gold in the
United States Treasury has been increasing rapidly Of
late as shown by the stock hand which was $685.
$4,000 on August 20 against $Io3474,o57 June
This is a gain of 100000 in two months. The
gain for the past thirty days has been about $4,000
900. The amount hand August 20 was the largest
since 1888 In March of that year was $2I8ooo ooo
but in the Cleveland administration of free trade it
got down to $44,563,4o3 in February, 1896
The reason for this gradual accumulation Of gold
coin in the Government vaults is obscure, nor
does require any profound financial acumen to per-
Ce1ve It 1t is simply because selling more
than are buying. This is the whole thing in a
nutshell Commercial statistcians it an excess
OF exports over imports, which is the same thing
When sells more than he buys his bank &C
increases in direct ratio and this is what the
United States doing and has been doing since
the Republican party resumed the reins of Government
A free trade policy reduced our stock of gold coin
from practical deficit so that the Gov
eminent obliged under the Cleveland adj
nlinistration to issue bonds to make UP the
deficiency. While the Republican party in power.
and the excess was pronounced the Democratic op-
position raised prolonged wall that a surplus
menace 1t did not take them long to dissipate it
after they into power and the bond issues
the result Now we have the surplus again, and like
sensible people are lending it to Europe, and would
like to lend more-on good security.
OF course this condition has beneficial effect on
trade 1t could not do otherwise The weekly re-
ports from the mercantile agencies call attention
the hattering state OF business and the leading hnan
ca authorities drawing roseate pictures Of the
future On every hand there are abundant signs of
prosperity and confidence greater nor more
widely extended. The bank cearings last week
showed gain of 1913 per cent the corresponding
week last year. while the failures 49, against 22
There is only cloud on the commercial horizon,
and it may be nothing but cloud This is the sud
den thirst to make heavy investments in our new
colonial possessions. Spectators going into it
with such enthusiasm that conservative men be-
ginning to fear that it may be ovcrdone, in which
case there would be reaction 1t takes money and
some years OF waiting to develop plantation proper
ties, those who embark in 1t will learn later on.
However, this apprehension is nothing more than
apprehension at present it may prove ungrounded.
At any rate there use in crossing bridge be-
fore one gets to it
The fine state of trade, mentioned last week. is
general not local; collective not Individual Consid-
cred individually the great staples, excepting iron and
STEEL with few lines of merchandise, such as dry
goods boots and shoes, etc, quiet But the rail-
road earnings increasing and the farmer is re-
ported in good condition all the country In
fact, when the matter is looked into deeply, it is
found that to the current prosperity Of the farmer the
fine condition of business is due the manufacturing
industry not especially active gratifying feature
of the situation is that the farmer is likely to con-
tinue prosperous the remainder Of the year. as the
crop prospects are good and prices considerably
above the cost of production With this condition
practically assured it is no wonder that the mercan
tile agencies report trade in satisfactory shape every
where and that the leading financial authorities are
amusing themselves by drawing rosy pictures of the
future.