New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-06-26
THE WEEKS OPERATIONS IN CLOCKS.

Europe is in need Of gold. and the condition
of the foreign and local money markets MAKES
gold exports from the United States possio'e
and attractive TO the bankers engaged III 'ne
operation Were 1t not for the pohcy Oh '"e
foreign banks in increasing their gold reserve
owing 10 the collapse of speculation IN Ter
,arv the noltical uncertainties in France and
the uneesiness over South African affairs' goiu
exports would probably not be made from mere a'
this period despite the fact that TINS is the sea
son Of the year when a movement or the metal
abroad ia normal. 1T Is true that the enormous
foreign trade balance in this countrys FAVOR
accumulated In the last twenty -four months mas
been practically eliminated By the SAFE Oh IoI-
eign-held American securities, but ~ 10 Aiso
true that exports Of merchandise continue large
IN 10 exceed imports. as shown in the TRADE re-
mort for Nav and reflected In the current
weekly returns OF foreign commerce Europe
cannot continue for any length OF time 10 ee'te
its trade obligations in securities for the simple
reason that IT is now practically bare OF Aihe''-
can investments Some observers say that hu-
rope will keep selling American securlles
as long as the trade balance runs IN TINS couh-
,rv,s favor but the fact is evidently forgotten
that there is a limit to the supply OF American
securities held abroad available for this sort OF
lQuidatiOn. perhaps IL Is DtlitNVu '4'"' i|"'OfN
can pav its debts 10y selling stocks short
The exchange market does not show that THIS
country is forced to send GOLD abroad. The sim
nle fact is that Europe Is forced 10 borrow, and
thls market is the only one IN Whlch II can
satisfy its needs. People who are worrying over
GOLD exports indications OF Forced payments
NV this country 10 Europe OF as indications vi
an unfavorable trade balance are not wen aC-
quainted with the actual position OF the traue
situation; neither are they ntelilgehtl! III,
ffnr IA
foreign money market Exports of merchandise
have been less than the phenomenal record 81
1888 but in comparison WITH otner years lhe!
are enormous. Anc the current RECORD Is peIH"
made despite a big Increase in imports. In tht
coming months the OutgO OF merchandise VIII
be large If pres mt indications prove ANYTHING
Exports of breddstu:s are increasing. Inc lol 70
eien demand for our manufactures is groWIhb
heavier High prices for steel and iron have not
checked exports. In the week a contract was
signed by a leading steel company TO supply tht
Russian Government with lSo,OD tons OF steer
rails al ruling prices making the largest and
most profitable order ever received IN the MS
tory OF the steel trade In the United states.
Factors Of this sort are worth thinking about
They are especially interesting at tins time When
so many people interpret gold exports as re-
Elections OF adverse trade conditions Gold Is
practically bought in this market. lust as pig
iron or silver bars are bought
Local financial conditions are In excellent
shape. Government finances are most encour-
aging. Business conditions continue to exhibit
this 10 the dull-or between seasons-perOd. The
volume OF business as shown in bank clearings
was II per cent larger last week than in the
same week last year, and 90 per cent larger
than in 1892 Railway earnings for the first
two weeks in June were bigger than in any
corresponding time Of any month this year. and
larger for any similar period in any year Fail
ures for the week were the smallest ever known.
The activity In iron results purely from egiti-
mate trade conditions. and not from specula-
ton, and the excess OF the demand over the
supply is so great that manufacturers and pro-
ducers enough work on hand to sustain cur
rent activity for many months to come. The
crop situation Is growing better. Even reports
Of winter wheat show improvement. while the
heavy movement OF grain to market does not
indicate belief among the farmers OF a crop
shortage Receipts of wheat at Western points
in the last three weeks amounted TO 1JGOO6sS
bushels against 34G3 40 in the same time last
year, and 4J40549 bushels in 1897. Wheat is
down two cents and cotton from 631 to 6 II
cents. two good indications OF actual crop con-
ditions
In view of the factors enumerated It is some
what difficult 10 find any reasonable excuse for
expectations Of liquidation and lower prices in
securities. The bear element has nothing upon
which 10 stand, save manipulation, and the last
named factor appears about at an end The
professional element that is working for lower
prices is slowly but surely hanging itself with a
rope OF its own making. The course Of values
last week showed the presence in the market
or an aggressive party Of shorts. a party of
spectators who used every questionable method
10 further Its work OF depressing values and
sentiment; but no legitimate holder was fright
ened into selling. and important declines
were brought about in the standard stocks The
interests who now hold stocks will not sell at a
loss. Weak holders have been eliminated Sag
ging prices In this dull period of speculation do
not reflect weakness. Good stocks are worth
buying and holding