The Savannah morning news. (Savannah, Ga.) 1900-current, 1901-11-22
GOLD EXPORTS.

1t ought not to be difficult for Wall
street financiers to give an explana-
ton of the gold exports. No one of
them, however, seems to be able to do
so. All sorts of explanations are APP
pearing in the newspapers. To an inn
partial observer it seems curious that
with a trade balance of $500, 900 900 in
our favor for the past year gold should
be going to Europe. One reason adj
vanced is that the rate of interest in
Europe is higher than in this country,
and that therefore 1t pays to send mon
ey abroad to be loaned there. Another
is that there is need for gold in Ger
many and France, and that those
countries are making it profitable to
send gold to them. Still another ex-
PLANTATION is that last May, when the
fight for the control of the Northern
Pacific was going on, immense blocks
of the stock of that road were purchas-
ed in Europe, but were not paid for
in cash sent from this country. Bills
of exchange were drawn which We're
discounted by European bankers. The
bills are now due, and the gold is be-
ing sent abroad to pay them.
This may be the true explanation, but
it does not seem TO be a reasonable
one. If it be true that there is a big
balance due US in Europe, why not
draw against it? Why send gold while
there is money there that could be
used to pay the debt which the pur-
chasers of the Northern Pacific stock
owe. it, in fact, they owe anything?
But it is urged that our exports have
fallen off considerably during the last
month or two, and that therefore our
balance is not so large as it was. Still.
IL the statistics relative TO our exports
and imports, which the Treasury De-
partment has been giving to the pub
lie from time to time, are correct, there
ought to be many millions of dollars
to our credit in Europe. The truth
doubtless is that those who are under
taking to explain why gold is going
abroad know little or nothing about the
matter.
If 1t be true, as some authorities as
sert. that the higher rate of interest
abroad is causing these exports, why
is it that our Treasury Department Is
doing what it can to facilitate them
1t is buying bonds at 14O-bonds which
1t sold a few years ago at 1041s-in or
der to ease the money market and
bring about a lower rate of interest
1t is paying gold for the bonds and the
gold is being shipped abroad. If 1t die
not buy bonds the rate for money
would remain so high that it would moi
be profitable to export gold to Europe
1t seems therefore that the Treasury
Department is encouraging the export
movement of gold.
One gold shipment last Tuesday
amounted TO $7,O00.o 900, of which $5.00O,-
900 went TO France and $1,000, 900 tc
Germany. Up to that time the total
shipments. since the outward move.
ment of gold began, were nearly $751;
5000. and it was the understanding
that between 100000 and $4,000
would be shipped yesterday. In Wal
street the impression prevails that the
outflow will continue for several weeks
and that probably $S5.OOO.000 or s40,-
100000 will be exported in all.
The country has an abundance OF
gold. and can spare that amount. anc
more. without causing any monetary
disturbance. but the public would like
10 know why gold is going abroad In
the face OF the immense balance Of
trade In our favor. They would like an
IL to
evrybody-the trust explanation.