The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1907-11-01
GOLD WILL FLOW IN |
European Countries to Send
1t to the United States.
GREAT AMERICAN STAPLES
Reports From All Quarters Show
That They Are on the Way to
Europe-Promise to Exert Great
Influence Abroad.

Europe-Promise to Exert Great
Influence Abroad.
New York, Oct. 30.-The enormous
influence which American products
are exerting in building up credit
balance abroad has been the most sig
nal development of the financial situa-
ton. Reports from all quarters show
that the great American staples
wheat, cotton, copper, tobacco, oils.
meats-are on their way to Europe,
this being the season of the year when
American products are marketed
abroad The immediate effect of these
shipments is to give the United States
credit abroad which can be speedily
converted into cash. These natural
resources of the country promise to
exert even greater influence than the
sale of American securities abroad.
The latter have to some extent suf-
fered discredit under recent pressure,
but the intrinsic values of American
staples used abroad and their colossal
aggregate at this period of the year is
beyond the reach of financial distrust
The recent foreign sales of millions
Of American copper have been supple.
mented by reports of similar heavy
export shipments, alone giving for
eign credit of $14,00O,0O0. The ship
ments of tobacco to Europe this year
promise to break all records. Officials
of the American Tobacco company es-
innate with the orders on hand that
the years exports will exceed 50,0OO,-
900 pounds Of manufactured tobacco,
which Is far in excess of the amount
exported last year. Europe will pay
over $100,000,000 for this tobacco and
much of this money will soon be avail
able in this market, as the contracts
with the European importers call for
immediate payment on delivery. Ship
ments of tobacco to Europe will be
heavier in November and December,
according to the officials of the Amer
lean Tobacco company.
Reports from the South show the
cotton crop moving toward Europe,
while the West is sending grain and
meat products in the same direction.
The fall shipments of American prod
rcts, chiefly agricultural, thus come
at an opportune time in giving the
country large credits abroad, making
Il difficult for the foreign money mar
kets to withhold gold even by the
most drastic raising of their discount
rates.
Several Favorable Events.
Several favorable events marked
the financial situation in New York.
The engagement of $2.OO0OOO in gold
by the First National bank of Chicago
and of 100000 by a Boston bank
brought the total gold engagements
up close to $20,000,000 in spite of the
cancellation of an order for 100000
by the Russo-Chinese bank, upon the
ground that the amount engaged ex-
ceeds the necessity. The raising of
vent America from drawing German
gold produces little effect on the situa-
tion here, as none of the gold engage
ments thus far have been made in
Germany and most of those anticipat-
ed were from the other European mon.
ey markets.
While money at the Stock Exchange
was loaned at high rates it fell finally
to per cent, offers of several mill.
ions at that rate being made by
number Of the leading bankers.
Comparative calm reigns among
New York bankers. They all realize
that the pressure for money is not
over, but they feel generally that I'M
reasoning panic is at an end and they
mands for currency. These demands
are coming in in considerable amount
from the West and South in order to
obtain money to move the crops, and
II Is feared that the sections where
the movement is largest may be more
or less hampered in their efforts to OBJ
tain funds. The general refusal to
pay cash for boarding, in the West
and South as we'll as in New York. 1t
is believed, will prevent the undue
absorption of currency and permit the
employment of what is available in
the most effective manner. The large
banks of this city are gaining depos-
its from the banks which have been
under suspicion and this tends in a
measure to concentrate money where
it can be used most effectively, but
on the other hand it creates debit bal
ances at the clearing house against
the banks which are losing deposits,
which are not always easy for them
to meet without sharply curtailing
their loans, even with the assistance
Of clearing house certificates.
Houghton, Mich, Oct 30.-In clear
weather the steamer Spokane of the
Wilson Transit company of Cleveland,
unbound with coal from C1avaland m