The Montgomery advertiser., 1907-07-11

who has made close study of the gold 'sLIBJJu uBIld63H uo p9mIoJuI tIsM upuI movement said yesterday in speaking of the final destination of the precious metal:
 "Egypt's use of gold is not generailv un- derstood. It Is responsible for much of the uncertainty and mystery in regard to specie 3 which have obtained in the last few I months. Phrases have appeared in cables which wholly novel. fa
 There are no statistics to show how much gold has gone to Egypt in the last , six months. The cotton crop is expecfed 2 to be of equal quantity and slightly higher In value than that of last year. It may re- quire. therefore. $50. 0o0, 900 before February l. 1908. to move it. Where will this gold be found? It is reasonably certain that t will De. iu part at all events. American double eagles. There are more than forty thous- ana planters In Egypt who demand gold for their cotton. are in no haste to sell 1t. and prefer to hoard the specie rather than to get an interest through a bank account is JannoVitch Extra sold in June. 1906. at X 22h cents a pound. but is now quoted at 29 cents. The United States has bought ona- third more of last years crop than in efth-- CT of the two preceding years. The Paris check on London has assumed extraordinary importance The mint par of the pound sterling in francs Is 25.2s14. while the ac- tual price has been about 25f4c There Is one country-ERypt-whose exports and i'm ports amount to more than $22o. o0o. GOO, where sterling exchange in Paris on London must rise to 2b. 2754 to permit of the prof. itabe export of French gold in payment of the balance annually due fin specie for cot ton.
 'It is the amount of this balance and the , movement of gold. in and out of Aiexan-tf dria, in the past and immediate future which have not received adequate eonsider- ation On January 1. 1905. about S4s,0o.- ooo was practically locked up as a special soia reserve in Cairo It was then released and banked and used by banks in their . commercial operation. The sudden release Of this large mass of metal is said to have caused for time a redundancy of sover- eigns' and s10 oo.0oo was shipped abroad q. It was thus added to the stock of gold avaii--ss able. as if 1t had been the output of a mine.
 ''If the Secretary of the Treasurv ,ver.y, to distribute Among the banks in the scat-.g tered centers of the United States a eirnilarA. sum Of money. 1t would be an epoch making event. put in Egypt the operation was con- lined 10 two cities. whose distance apart fa that Of Albany and New York. There are eleven banks of importance. Four of these are local. with European branches, and eev-- en are European. with European branches. In April. 1906, his maJesty's government published report on the finances of Egypt. in which Lord Cromer said:
 After examining the balance aheets of
 most Of the leading banks cannot help thinking 1t Is worth the attention of the d. EeStofs to cohsioer Whetner the proportion of their liabilities covered by cash. by monAa sy at call or on short notice by first class securities should be increased.'
 Now. if the leading banks include the Compton d'Escompte. the Credit Lyonnais. the Banca al Roma and the Banuue Impe- riaie Ottomane. is 1t conceivable that tho advice of the British diplomatic agent was, required to show that somo cash and first, class securities were desirable features In their balance sheets?
 Should the United States ship gold tes the extent of $50. .0OO. .0o0 to be sent to Egypt to purchase cotton for our own mills and those of Europe, there is no reaAon why Wall Street should regard 1t in any way abnormal or depressing. On the other hand the losses already sustained on Egyp- tian collateraIs held in Europe are measur- able in the hundreds of millions. and thaS United States ought not to be required to maintain their price at the expense of our own securities" -