Arizona republican., 1900-08-22

It is an old saying in the financial world that it is a bad time to sell stocks
 when gold is coming
 OUR into the country. The FINANCIAL converse of this proposi- CONDITION. tion must be equally
 true. As familiar also are the reassuring statements, which generally appear when we are export ing specie. In most previous cases, according to the financial wiseacres, We could well afford to part with some of our hoard of the precious metal, anx- iety was not justified, the big balance of trade in our favor would speedily drive back the gold flood, and so forth. Nevertheless, stocks have gone down on such occasions with striking regu- larity. Why. then. should they go up now? We are exporting gold by mill lions. One day last week more than eight millions left New York for Lon don. Financial writers tell us the ''technicar' situation is favorable: that is, stocks are mainly held by persons who are not inclined to sell just now, while increasing hopefulness of a speedy end of the troubles in China tends to alarm those who have been en- gagged in the somewhat precarious bus mess of selling shares they have never owned
 But this explanation hardly sufiices tn ha nh now witnessing. It is probably a fact that for the first time since the re- sumption of specie payments we are In a position to supply a considerable out inconveniencing or even threaten ing to inconvenience our own money market. This is due in large measure to the complete restoration of confi- dence flowing from the defeat of Bry- anism four years ago. All reasons for hoarding gold were thereby removed and the country has since then enjoyed the highest degree of prosperity it has ever known, so that surplus funds have grown enormously and fresh fields of activity are eagerly sought As the London Times put it the other day. re- ferring to our subscription to the Eng fish war bonds: Tt has been evident for eighteen months or two years that American finance houses possessed large funds which they have been un- able to employ at home satisfactorily and the higher interest rates at pres ent in Europe attract some of this money"
 The condition of the country just now. both financially and industrially, is indeed remarkable. The latest treasury estimate of our gold is 1,043.- 525. IF, all of which, except the govern ment reserve, may be regarded as available for business purposes. At the same time our currency has been in creasing rapidly, under operation of the new law, the bank note circulation of the country having been augmented by no less than $62, ,OO0, 900 between March 1 and August l. The interesting detail bearing on this is the fact that more than fifty millions of this currency eS- pansion has taken place outside of eastern money centers. in the agricul- tural parts of the country which gen. erally look to the east for money sup plies in harvest times. That they will need to draw on New York as heavily this year as usual seems incredible in view of these additional supplies of bank notes in the west and southwest. Of similar bearing on our ability tu supply gold to foreign countries is the impending redemption by the govern ment of nearly $2O,OOO, 900 of the ? pei cent bonds, which will more than mak, up for the loss in cash which the New York banks must sustain from thu payments on account of the English