Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-10-08
HUGE GOLD SHIPMENTS
VOLUME NOT EQUALED SINCE
BRYAN-McKINLEY CAMPAIGN.

GLASGOW, October S.-The Glasgow Her.
aid calls attention to the interesting fact
that the gold exports to the United States
have not equaled the present volume si:S,e
the closing days of the Bryan MCKINLEY
campaign. Says the Glasgow Herald ed-
torially:
We have to go back a decade to find
a parallel to the huge gold shipments to
New York which are disturbing the Lon
don money market just now. During the
concluding weeks of the great struggle
between Mr.. Mckinley and Mr.. Bryan foe
the United States Presidency in 1896 the
dread of a silverte victory induced Ameri-
can financiers to hoard the yellow metal,
and to take in that connection about s31.-
5O0,G00 in hairs and coin from the London
market. These exports covered a period
of over ten weeks between August and
October of that year, when they ceased
as suddenly they had begun. The ten
years which have elapsed since that Ameri-
can monetar-', and more especially cur
rency. crisis have wrought a phenomenal
change in the relations between the Euro
pean and the transatlantic money markets.
and it is this change which has led to the
present abnormal situation in Lombard
street.
Requirements of Grain Trade.
Some years ago the ordinary require
ments of the grain trade necesstated every
autumn gold shipments to America, in or
der to make good New Iork's losses Of
coin into the interior, whence the crops
had to be moved TO the seaboard. The
growth of stock exchange business be-
tween Europe-and especially London-and
Wall street. has disturbed the regularity
of these bullion movements. The increas-
ing prosperity of United States railroads
at first induced financiers, and subsequently
investors, on the other side to repurchase
do yba Of fha Al \ NOR q ~
transport undertakings, and this backward
flow of stocks frequently more than bal
anced the sums due to the United states
for export of produce. The local demand
for investment fell short. however. of the
available supply Of securities, and while
the level OF quotations advanced almost
uninterruptedly on increased net prohts,
growing dividends and not little manipu-
lat!on independent buyers fought shy of
values which but a few years ago had been
obtainable at rubbish prices
Difficulties of Financie ring.
From this development date the difficult
ties of financing the huge positions in
American issues which awaiting abb
sorption by private investors. and while
fresh capital issues added to these diff
fculties more stringent regulations affect
ing the loan business OF New York clearing
banks. and finally the elimination of the
great American insurance companies as i'm
portant factors in the Wall street loan
market narrowed the circle within which
the pawned stocks left in the possession
Of the leading financial houses could find a
temporary h0ne. In these circumstances
borrower turned to the European banking
centers.% and. Of course. primarily to Lon
DON which is the sole free market for gold.
When 1t Is borne in mind that simultan-
eously with the arrangement of remittances
against securities and bills sent to Lom-
bard street provision had also to be made
for the liquidation of the Indebtedness of
British fire offices in connection with losses
at San Francisco. it will be apparent that
an unusually heavy drain upon the stock
of gold on the London market was in
evitable.''