322 



FINANCIAL REVIEW OF 1888. 



loan, negotiated early in the year in 

 ngland and Germany was for the purpose of 

 enabling the free banking system of that coun- 

 try to be carried into effect. This law pro- 

 vided for the issue of notes of banks against a 

 4^-per-cent. Government stock for which pay- 

 ment could be made only in gold, which metal 

 was required to be lodged in the National Bank 

 until January 1, 1890, after which it might be 

 used by the Government for the redemption of 

 a portion of the foreign debt. After the drain 

 of gold from London and other European cen- 

 ters had become so great as to absorb the open 

 market supply, a resort was had to the banks 

 for further amounts, and then it was that the 

 official discount rates began to be disturbed. 

 Almost simultaneously, early in October, the 

 rates at the Banks of England and France were 

 advanced, the former to 5 and the latter to 4 

 per cent., and at the same time there was an 

 unexpected shipment of 500,000 in Bank of 

 England notes to Russia, supposed to be for 

 the purpose of holding in lieu of gold against 

 a new issue of rubles. The condition of the 

 European markets became so strained by rea- 

 son of this movement to South America and to 

 Russia, that the bankers negotiating with the 

 Argentine Republic notified that Government 

 that further shipments thither would endan- 

 ger the success of the loan, and thereupon the 

 banking law was amended so as to permit the 

 gold held by the National Bank to be released. 

 This temporarily relieved the pressure, and the 

 gold thereafter sent to South America was 

 ordered out from New York by London and 

 German bankers. Toward the end of Novem- 

 ber a London and Paris syndicate negotiated 

 a 20,000,000 conversion loan for the Russian 

 Government, and this tended to keep the rates 

 for money high at all the European centers for 

 the remainder of the year. 



Among the important events of the year was 

 the successive defeat of various labor organiza- 

 tions. The determined stand taken by the Phila- 

 delphia and Reading managers in January re- 

 sulted in the abandonment by the Knights of 

 Labor in the mining regions of all efforts to 

 dictate the policy of the company, and this also 

 caused the ending of the miners' strike in the 

 Lehigh valley region. The next movement of 

 importance was that of the engineers on the 



were more clearly manifested this year, and at 

 the annual convention in November the official 

 report showed a decrease of 300,000 in mem- 

 bership during the year, and only 259,518 on 

 the rolls. The losses were heaviest in the 

 Eastern States and in the large cities. The 

 treasurer's report showed that the receipts 

 were not sufficient to meet the expenses, and 

 retrenchment became necessary. 



The silver question was rarely discussed dur- 

 ing the year. The United States Treasurer and 

 the Secretary of the Treasury both suggested to 

 Congress the advisability of suspending coinage 

 of the standard dollar and the keeping of the 

 purchases of silver bullion in the form of ingots, 

 but no action was taken by Congress on the 

 suggestion. The order of the Secretary of the 

 Treasury directing that checks, drawn against 

 deposits of gold by the banks in the Sub- 

 Treasury, be received for duties at the New 

 York Custom-IIouse went into effect July 1, 

 and it not only proved of great convenience to 

 the mercantile public, but it tended to lessen 

 the demand for currency, including silver cer- 

 tificates. 



The following tabular survey of the eco- 

 nomical conditions and results of 1888 con- 

 trasted with these of the preceding year is 

 from the ''Commercial and Financial Chron- 

 icle " : 



The prices of leading staples on or about Jan. 

 1, 1889, compared with prices at the same date 

 in 1888 and 1887, were as follows : 



Chicago, Burlington and Quincy. The defeat 

 of the Brotherhood of Locomotive Engineers 

 was a severe blow to the organization, and one 

 from which it did not recover. The indications 

 of disintegration of the order of Knights of La- 

 bor which were visible at the close of last year 



Manufacturing Industries. With the exception 

 of the strike of the miners in the Schuylkill 

 and Lehigh valley coal regions, early in 1888, 

 and some smaller troubles of this character in 

 other branches of business, at intervals during 

 the year, producers and manufacturers were 



