The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-12-01
GOLD STARTED THIS WAY.
rgE MAJESTIC BRINGING sf.OoO,OOo
10 MORTON, BLISS C co.

Foreign Bankers Believe tho Ex.
.honge Rates Must Drop Nearly An
o,ber cent to Make Importation Profit
,hIe-Tho Increase in Gold Production.
announcement was made by Morton. Bliss
IN Yesterday that they had engaged In Lon
Son Tor import 100000 in gold. which had
Soer ahmed on tho steamship Majestic sail-
,nr from Liverpool. Though the market for
earring exchange has weakened recently. the
engagement was something OF n surprise TO
,ho foreign bankers generally. and It aroused
vonch comment. At the Office of the import
,ng firm IL was stated that the engagement
lad been made on n regular exchange trans
action. In the ordinary course Of business. and
,h,, n. Of course, involved n profit, or IL would
not have been made.
representatives OF several Of the leading
,oreipn banking houses said that, as the mar
10, for sterling exchange stood at present,
,hsv were unable to figure out any profit upop
the Importation OF gold. Even assuming
thew said, that there was a profit in the trans
action, Morton. Bliss & Co. could have Melted
a substantial additional profit by selling their
Nils instead in the local market to offset tho
balance against which the gold was engaged.
Large offerings of commercial bills have
t.en drawn recently against cotton shipments
and these have. caused the sterling exchange
market to weaken. Demand bills OF exchange
we're quoted yesterday at S4.S4h to S4.S4H.
There was a good demand for the bills. one
toreien banking house bidding $4.S4A for n
hlock Of 100000 OF demand exchange. The
foreign bankers generally stated that they did
not expect any material further decline in the
exchange market. at least for the present. but
that, according to their calculations. demand
exchange rates would have to decline to
SEI before gold importatlons could DO ar
ranged prottably.
market, This premium luctuates, and is liza
BE TO be influenced by the heavy shipments of
~ metal Htr,G now being heinz Says b to Lo so@a e from rga
transfers Of gold lately from the British, capt
tai to Germany. drawn there by the high dis
where the bank rate is 8 per cent. and the out
side rates 3 u 5h per cent.
It was estimated Yesterday that there is be
Of exchange held as collateral by local bankers
against loans which. mature during December.
ihe rates which prevailed when the exchange
was bought by those who borrowed from, the
banks. The, question now is whether the Dor
shall seek renewals Of the exchange and trust
10 luck to come out ahead later. Renewals
will cost them from u to u OF a cent in the
The recent publication Of the annual report
Of the Hon. George Il. Roberts. Director OF the
Mint. has aroused much interest In banking
circles. and from Its statistics of the gold pro-
duction Of the world some Interesting deduc-
tons have been drawn. Mr.. Roberts states
that the indicated worlds production Of gold
IN 1898 aggregates the enormous total of
1888. 1872. 800, which is more than double the
product OF 1891. l30.00O,O0O, and exceeds the
combined value Of the gold and silver product
Of ten years ago. h increase in the produc;
ton has been very rapid, n 1897 the total
ceeded the production OF 1896 by $34,S22.500
Students Of financial ECONOMICS agree that the
deeted in q corresponding increase in the ,circu-
lating medium Of the world. cannot but have q
corresponding effect upon. prices. everything
measured in. gold advancing in price as the
volume Of gold outstanding increases.
Regarding the subject. Deputy Assistant
Treasurer Maurice L. Mphleman OF the United
States Sub-Treasury. who Is an accented ,au-
thority on monetary matters, said yesterday:
The Director Of the Mint has called atten-
gold product OF the world has been $977.000.-
900. and the question has arisen whether such
n large addition to the worlds stock OF gold
will not have a marked effect upon prices OF
commodities. Were this immense hoard added
az once or even In reasonable installments to
the supply OF the civilized worlds tools OF ex-