Daily Kennebec journal., 1898-05-24
Financial Relations With Europe.

Tn his weekly review Henry Crews.
the New York banker. dwells at length
unon tbe steady tone of business in
spite of the war and war scare, ana
particularly upon our 1oreiEA COM
merce which shows the recent large
April exports of merchandise show an
increase over those of 1897 of $2l,TS.0oo,
or nearly so per cent, while the i'm
ports of goods exhibit decrease Of
S45 400, 900. or nearly As per cent While.
for April 1897, there was an excess of
imports amounting to $23,613,00O. last
month the exports exceeded the imports
by SAB, J02, 900: so that the April balances
$67 115, 900 more in our favor than 1t was
movement. OF course, it is out of the
question for Europe to continue in
definitely to pay these unprecedented
balances in gold The effect is to force
up the rate of interest at the European
money centers While depressing it here,
and thus it becomes a paying transient
investment to buy up export bills on
London and other European points.
This process. after a suspension for
the effect of putting up exchange to
rates which have stopped the importa-
ton of gold At the same time. the
high rates for money at London ar"
causing some return of our securities,
which is a real contribution towards
the liquidation of our creditor balance,
While our purchases of export bills are
but temporary postponements of the
foreign indebtedness and do not avert
of gold. The amount of floating Euro
pean indebtedness now outstanding is
calculated to keep the rate of interest
relatively high in London. and the
more SO as Russia is appearing as a
free buyer of the metal: and that fact
may be expected to simulate our local
purchases If export bills.
For the first ten months of the cur
rent fiscal year. our gross exports of
Sl,012. ll7,000 our imports of the same
items We're valued at $52l .052 900; which
shows an excess of exports over inn
ports for the last ten months, amount
ing to SOL, ,065, 600. This balance has
been set off to the extent of $Si $4,000
by net imports of gold; which leaves a
remaining balance of $466 $50, 600 to be
liquldatod from other sources. The
value of returned securities. our inter-
items combined cannot be Supposed to
at all approximate these figures and il
therefore follows that, even making eX-
traordinary allowances for the return
Of securities. a very large unliquidatcd
balance must still remain due to this
country, not less than $780,
000. 900 but more likely a much higher
sum. our financial relations with
Europe thus stand we'll protected for
some time to come, with the result Of
strengthening our gold basis under the
trying conditions of state of War
finance.
1t may he reasonably questioned
whether any other country has ever
made such 4 brilliant record under like
conditions. and especially in the pros
pect of foreign war. In part settle
ment of this credit balance. we have
taken back a very large amount Of
securities without any bad effect upon
cur home market. The commercial
relations of this country We're never on
SO substantial a basis as today, which
compared with Spain's begGarly con-
| dition is certainly reassuring. The only
way for stock operators to make money
in the future IS to forget our relatively
small troubles with Spain and look -
railroad earnings and the condition Of
the growing crops from time to time