Daily press. [volume] (Newport News, Va.) 1896-current, 1907-06-04
RENEWED GOLD EXPORTS.

Uncertainty as to the foreign ex-
chnnge situation and the possibility
of shipments of gold from New York
to Paris was dispelled this week by
the engagement of 100000 of the
yellow metal on last Monday, and of
S2,O00,000 more on Wednesday, which
amounts. in both ,cases, were for.
warded to the French capital. 1t has
already been pointed out that such n
movement was not Mt all unlikely to-
occur In spiteSf the Lelief that If in
ternational bankers began to draw
gold from New York. our own Treas.
ury Department would hasten the
withdrawal OF government deposits
) from the national banks, and in tnia
way place check upon the ability of
the foreign market to take gold from
this country. In fact, the New YORK
money market seemed to rest under
the belief TINT there was no longer
any real likelihood OF bold withdraw.
MS. Several circumstances, however,
serve to demonstrate that this feeling
was without justification. In the first
place, foreign exchange rates ut New
York remain very firm, demand ster.
ling being quoted at around 4.SG.75,
cases, tho announcement of the initial
shipment of $4,000 gold, which was
made on Monday, failed to cause any
lowering of exchange rates. Another
element In the situation was in tho
Increase in the New York bank re.
serve shown by the Clearing House
statement Of last Saturday, which
document exhibited gain Of Sc, $780,
900 In cash and substantial enlarge.
ment of tho surplus reserve. The &C.
cumnlation of money in the New York
banks seemed, in fact, to be in the
nature of an Invitation to Paris to
draw gold from New York, or, to put
1t In another way, n tangible indica-
ton that London hanks and bankers
could mt last with safety transfer to
New York part of the burden which
they are called uuon to bear In regard
to returning to Paris the gold which
4 The British money market obtained
from that source when 1t was In
straits In the autumn and winter OF
last year. 1t should also be noted
that French bankers were bidders for
the new gold which arrived at Lon.
? don this week from South Africa and
elsewhere, and succeeded in obtaining
the equivalent of $4,OOO,0OO thereof,
4 the rate Of exchange Mt Paris de-
Ginning so that that market seems to
have for the time being command
OF the situation as regards both Lon.
don and New York. Various theories
. are advanced as to why the Bank OF
France should exhibit strong desire
10 increase its gold holdings. The
prevalent theory. however. is that It
4 Is the Russian situation which occa.
sions the adoption of an energetic
s policy In this respect. There are
large payments OF interest upon Rus.
sia's funded obligations which ms.
5 t,lre in June, and the situation in
that country from financial stand.
point continues to be far from reas-
surfing, even IL there should be no
positive break between the govern.
merit and the people. such as would
readily arise If the newly created
Parliament were summarlly dissolved.
\ It lis to be noted, however. that
the New York money market has. on
the whole. taken these developments
without any exhibition of positive APP
prehension Or excitement. 1t Is true
that While the gold shipment an.