Las Vegas daily optic. [volume] (Las Vegas, N.M.) 1880-1908, 1904-05-24
%HesFlnANc,AL SITUATION.

~irecent heavy movement IN gold anu
/ the possible depletion Of U gold re-
serye. More concern, however, has
! been felt On this score than the situa-
ton has warranted. says Mt. Clews.
Thus lar fhfs season, or since April.
the total shipments have been nearly
sixty millions, but many millions have
been imported during the same period,
chiefly from Japan. and our net i'm
ports during the last ten months have
been over forty-six millions. SO that
1.-THE recent Het loss this spring has
been comparatively unimportant II
! our previous imports. our home pro-
duction and our present heavy stock
III gold are taken into consideration.
ii is probable that We could easily
lose 500, 0OO, 900 net without giving
any cause for anxiety, but there u at
present little likelihood Of the move
,lment attaining any such volume. In
the first place. the supply OF bars y
exhausted, and gold coin, which is less
profitable, must now be shipped. Next,
as shipments increase, money rates
tend to rise here and fall abroad SO
THAT the movement corrects itself aut-
omatically. Indications already point
TO the movement having reached It's
cIimax. The fact that really does give
reason for concern, however, Is that
government receipts are steadily fall
Ing below expenditures. This Is q
movement which. IL not checked, will
!, eventually oblige the treasury 70 face
an awkward deficit, for since we are
!. burdencd with tbs recent addition Of
! 200 millions Ia our bank currency,
, (which refuses to contract when de-
mand for money declines, II follows
that we may have to face = treasury
deficit and 4 depletion Of our gold
Preserve both at once II present condi,
i tions continue. Once more. then, we
i are threatened with tho disturbances
rIto which u defective treasury and
currency systems have periodically ex.
posed us. The danger Is not vet In
! sight, but tendmcieB are at work
4 which may develop unfavorably, and
y they will al least bear close watching
I.essened business activity and easy
money rates would tend to ~aggravats
a the situation; consequently the firm
CT rates for money and the decline In
Exchange recently established are sat
isfactorily regarded as placing q checl
upon the too free outward movement
Il Of gold. A poor bank statement Is an
y ticipated this week, which, following
- upon the recent shrinkage In surplus
- reserves. warrants better rates fol
v both call and time money.
The April statement OF foreign trad
g was better than expected. Our ex
ports we're siO9, 995, 900, d slight In
crease over last year, while our I'm
!, ports declined over four millions !,
J, $50. 10000, leaving an excess OF tween
.,tysix and one-half millions In ex
ports, compared with twenty-five mil
lions last year. Had ~ Aot been 10
!. the high price obtained for our cot
!, ton, however, there would have beef
q material decrease In exports, tn,
"a So. .&IH
gsnefaI tendency Of which has beel
n. to diminish. The decline In import
az Is, OF course. attributable to lessene,
Ie trade activity al home. Evidence
III which confirm the latter are decreas
nd Ing railroad earnings, the shrinkag
Ct. in bank clearings, depression In tn
M iron trade and increased curtailmen
ed in the cotton industry. These factors
lie however. are exerting little effect III
on the stock market, because the,
have already been well DISCOUNTS
ga by the previous declinea Firstclas
ais securities are well held In spite 0
'm such developments, ana one Of III
10 most satisfactory failures OF III
to situation is the good demand 10
prime Investments. This Is usual
he one Of The first signs Of approach
rs Ing recovery. and It must not be fol
he gotten that Wall Street has All cd
al fashion Of apparently running counte
10 10 prevailing conditions. because
~ discounts them ahead. Until In
crops, the election and some othe
minor doubts are cleared away. hos
= ever. there is little chance Of any ger
erai pronounced recovery In Wa
Y, Street; and, as suggested above,
!. sharp watch will have 70 be kSpt vi
~ on lhe Effects Or the gold movcmel
- and treasury operations upon III
money market.
The war continues to exert an III
I. portant Indirect effect upon this ma
IA ket. Aside from the Panama can
payment, WI should probably expo
I. little gold we're Il not for the wa
=, Paris feels the strain most. becau.
kIE r.