The Savannah morning news., 1904-07-31
A story of Gates.
1t is the story of
Mr.. Gates and his pi
Foreign Funds Withdrawn.

Foreign Funds withdrawn.
The most important feature of the
market has been the withdrawal of
foreign funds from the New York
money market. This was ACCOMPLISH
ed by the sale of stocks and by the
covering of short sales of foreign ex-
change. Possibly not less than $780,
100000 of foreign capital had been
introduced into America through the
exchange market in anticipation of
autumn exports of cotton and grain
II is true that interest rates in Lon
don and the continental centers aver
aged higher than here, but there was
large surplus abroad which could
not be loaned at any price. The l to
~ per cent. obtainable here was
therefore regarded as something of a
pick up" The war scares occasioned
ny the indiscriminate seizure of the
merchantmen of all nations by Rus
sian cruisers gave birth to a feeling
OF alarm abroad and led to a calling
IN Of funds scattered over the world
There may be no need for this re-
concentration of money in London,
Paris and other foreign capitals, but
1t is considered the part of wisdom
TO be prepared against emergencies.
Uneasiness as to Foreign CompIica-
lions.
There has also been an under-cur-
rent of uneasiness. lest the United
states may be in some way drawn into
unpleasant complications incident to
attacks upon the American marine. Mr..
RooseVelts impulsive patriotism is we'll
known, which gives color to the dread
lest he may do something rash. This
Idea is secuted as absurd by the
Presidents friends in Wall street, but,
nevertheless, the bears on the Stock
Exchange have been using it as a
weapon and have done their best to
stir up a sentiment of distrust. In
this they have been measura.bly sue
cessful Satirical comment is heard on
the Roosevelt penchant for hunting
large game and simulated fear is ex-
pressed that he may feel it incumbent
upon himself to commit assault and
battery on the Russian bear.
Sterling "A Key to the Market.
The course of the market has con-
nrmed the theory held by exchange
experts that the price of sterling ex-
Schange would be a correct index to
fluctuations in stocks. In my last let
Ter the views of an authority in this
speciality were given. watch sterling
exchange" he counseled. IF exchange
goes up our stocks decline. An adj
vance in sterling rates will mean a
withdrawal Of foreign money from the
american field and must be consid-
cred as good cause for international
uneasiness. That should be the signal
Tor the shortening of sail here and the
'urtailment of speculative risks" The
market history of the last week proves
me absolute correctness of the above
forecast. The sharp advance in for
elsn exchange was coincident with an
equally abrupt break in the stock mar
het. The rise in exchange was so rapid
mat It was attended by predictions
OF gold export movement in the
immediate future. whereas only a few
Gays before the bankers were theoriz-
ing on the date on which imports of
the precious metal would begin.
Secretary shaw's Policy.
Secretary Shaw was in no haste to
reduce the amount OF government de-
l2sits in national banks. He seems
lined TO let the working balance In
we treasury vaults run down 10 a
very low point before drawing on the
banks There is in reality no actual
necessity for maintaining any fixed
balance in the treasury az the money
~ bank is available instantly for gov
ethmental needs should the occasion