Los Angeles herald., 1908-05-04
EXPORT OF GOLD is
CAUSE FOR UNEASINESS
Millions Being Shipped Abroad in
Payment of Loans-Foreign Cred
Its Desired at This Time 81
for Future Safety

Special to The Herald.
NEW YORK, May 3.--Dun's review
on the money market for the week is as
follows:
Gold is now going abroad freely, no
artificial means being necessary at the
present parity of the international
money markets and the position OF ex-
change. Competition for the weekly
offerings at London was so brisk that
the price rose to us 10hd, Paris secur-
ing about all the amount offered and
arranging further liberal shipments
from New York. While engagements
have not gone direct to Berlin as yet,
it Is believed that much of the move
ment to Paris is really en- route for
Germany, where needs are heavy in
connection with the bond issue. Thus
far the secretary of the treasury has
not withdrawn government deposits,
land rates for money are very low.
Last Saturdays bank statement
showed that local associated institu-
| tions held about $50,000,000 in cash
above legal requirements, and the
treasury is steadily paying out more
money than 1T takes in, while the in
terror is still sending cash in this direc-
tion. Several large railroad borrow
ings are about to be made, and II these
loans are supplemented by further
heavy shipments of gold, together with
expected reductions of $50, 100000 In
government deposits, rates cannot be
held at the present low position.
There seems to be some confusion
regarding the exact nature of the pres
ent outgo of gold especially in connec-
tion with decreasing exports of mer-
chandise, which are cited as proof that
gold is shipped in settlement of trade
IN Ia ThiC n ipnnraQ tho
fact that imports of merchandise have
contracted much more than exports, as
is customary during a period of quiet
domestic trade, so that the outgo of
gold must be considered wholly fan
cial operation.
payment of money borrowed abroad last
fall when imports of gold were very
heavy, or, If that movement was not
loan, this one must be. Nor Is there
any cause for uneasiness in, connection
with the shipment of few millions in
gold.
Treasury vaults alone hold much over
a billion dollars In the precious metal,
and the sum in circulation Is also be-
yond precedent. The United States is
in very good position to spare gold
now, and If credits are piled up abroad
ct this time there will be something to
draw upon when needs here are greater.
VI COuTSc tIlt iiOnCy AidlhCb WOuiu Dt
placed in the same position If corre-
spending Withdrawals were made by
the treasury of part of the 5000. 100000
it has on deposit with the banks. and
the sentimental effect would be better
than the shipment of gold out OF the
country.
Call money remained easy at ~ to
2 per cent, with most new loans and
renewals at IL per cent. Time money
Is abundant and cheap, although there
is feeling that the numerous railroad
borrowings in progress may cause a
rally at any time.
"Some short term loans have been
made at 2A per cent for ninety days OF
less. per cent for four months, 315 to
3% for five to six months and 4A to Az
for O full year. There Is now a good
movement in the commercial paper
market, prices having become fairly
steady at per cent for less we'll known
Endorsements and more remote ma
turtles"