FINANCIAL REVIEW OF 1901. 



227 



completely evacuated Pekin Sept. 17, and with- 

 drew from the province of Chihli Sept. 22, 1901. 



The statistics of the foreign commerce of the 

 United States indicated gradually decreasing ex- 

 ports of domestic merchandise and manufac- 

 tures, especially after the first five months, when 

 imports also fell off, though there was a recov- 

 ery in the volume of both exports and imports 

 in October. At the end of May the excess of 

 exports over imports of merchandise was $254,- 

 041,912, against $224,964,501 at the corresponding 

 date in the previous year. In June this excess 

 was $34,369,606, the smallest for any month since 

 May, 1899, and the excess did not approach the 

 maximum of the year, which was $67,013,521, in 

 January, until October, when it was $64,228,601. 

 Then, however, the exports were $145,640,458, the 

 largest since December, 1900, while the imports 

 were $81,411,857, the greatest on record. The 

 total excess of exports over imports of merchan- 

 dise for eleven months ending Nov. 30 was $528,- 

 068,764, against $571,603,735 to the corresponding 

 date in 1900. 



The following is a tabular survey of the eco- 

 nomic conditions and results of eleven months of 

 1901 contrasted with those of the preceding year: 





Money. The striking feature of the monetary 

 situation this year was the almost continuous 

 absorption by the Treasury of money from the 

 banks through the fiscal operations of the Gov- 

 ernment, and this, too, notwithstanding the im- 

 portant reduction in internal-revenue taxes which 

 became effective at the beginning of the fiscal 

 year. The efforts of the Secretary of the Treasury 

 to distribute the accumulating surplus revenues 

 through purchases of unmatured bonds and the 

 increase of deposits of public money in the de- 

 pository banks were only partially effective. At 

 the end of June the surplus revenues for six 

 months of the year amounted to $56,983,575, while 

 the disbursements for bonds purchased under 

 orders issued March 30 were only $12,840,924. 

 Even after the above-noted internal-revenue-tax 

 reduction became effective, the surplus continued 

 to increase, because of smaller expenditures, 

 chiefly for the War Department, and the liberal 

 distribution of money for unmatured bonds in 

 September, amounting to $18,894,385, only par- 

 tially relieved the monetary tension. Hence it 

 was deemed advisable in November to resume 

 bond purchases after they had been suspended in 

 the previous month. The evidence thus presented 

 of the derangement to the monetary situation re- 

 sulting from the Government's fiscal operations, 

 and the inefficiency of such measures of relief as 

 could be lawfully resorted to by the Treasury 

 Department, caused a general popular demand for 

 the further reduction in internal-revenue taxes, 

 and recommendations to that end were submitted 

 by the Secretary of the Treasury in his annual 

 report to Congress. Almost concurrently with 



the above-noted drain of money into the Treasury 

 there was a movement of gold hence to Kurope r 

 which was partly for the payment <,t M-eurities. 

 which had been returned hither in hu-o,. volume. 

 These exports of gold amounted at i ho. end of 

 November to $47,907,629, which sum \vas partially 

 offset by the receipt of $11,842,362 from Australia. 

 The movement of gold bullion from the Yukon 

 fields was intermittent during the season, and t he 

 receipts at New York of assay-office checks repre- 

 senting the metal deposited at Pacific coast points 

 contributed only moderately to the supplies in the 

 banks at this center. The gross stock of gold in 

 the United States Treasury was on Nov. 14 $544,- 

 824,726, the largest on record. 



The cash holdings of the New York associated 

 banks were $232,083,600 at the beginning of the 

 year, reaching the maximum, $269,011,100, Feb. 9. 

 By July 6, influenced largely by absorptions by 

 the Treasury and by gold exports, these holdings- 

 were reduced to $246,532,800. There was a re- 

 covery to $262,298,200 by Aug. 10, but by Sept, 

 14 they had fallen to $239,968,800. Thereafter 

 they increased, reflecting the large purchases of 

 unmatured bonds in that and in the following 

 month, and on Oct. 26 the cash was $253,337,200. 

 At the end of November the amount held was 

 $248,581,700. The loans of the banks at the begin- 

 ning of the year were at the minimum $803,989,- 

 600. Influenced largely by borrowings by com- 

 binations of capitalists who were negotiating im- 

 portant deals in railroads and industrial proper- 

 ties, there was an expansion in bank loans by 

 March 9 to $918,789,600, which was the highest on 

 record. Gradual liquidation of some of these 

 loans, caused in part by a reduction of bank re- 

 serves, resulted in a decrease to $882,067,300 by 

 April 20. There was a recovery to $897,716,900 by 

 May 11, followed by a sharp fall of $38,844,300 in 

 the next fortnight, reflecting the unsettling influ- 

 ences of the panic which resulted from the North- 

 ern Pacific corner. The loans fluctuated between 

 $902,755,300, June 22, and $856,198,500, July 20, 

 thereafter advancing to $895,186,600, Aug. 31, de- 

 clining to $865,949,200, Sept. 14, and at the close 

 of November they were $876,169,200. The deposits 

 of the banks were $870,950,100, the minimum at 

 the beginning of the year. The unprecedented 

 maximum of $1,012,514,000 was recorded March 2. 

 There was an irregular fall to $939,145,300 by 

 July 20, followed by a recovery to $968,149,600, 

 Aug. 24, a decline to $930,361,900, Sept. 21, and 

 at the end of November the deposits were $940,- 

 668,500. The surplus reserve of the banks Jan. 5 

 was $14,346,075. There was a rapid rise to $30,- 

 799,450, the maximum of the year, by Jan. 26, a. 

 fall to $5,817,975 by April 6, a recovery to $21,288,- 

 975, May 25, chiefly caused by the reduction in de- 

 posits, a decline to $5,211,525, July 6. In the three 

 succeeding weeks, 'or by July 27, there was an 

 increase to $23,128,575, due to a gain in cash 

 and a decrease in deposits. This was followed by 

 a decline to $6,915,875, Sept. 7, an advance to 

 $17,483,175 by Oct. 12, reflecting the gain in cash 

 resulting from bond purchases. An increase in 

 deposits and a decrease in cash, however, caused 

 a fall to $8,689,925, Nov. 9, and at the close of 

 November the surplus reserve was $13,414,575. 



The condition of the New York Clearing-House 

 banks, the rates of interest, exchange, and silver, 

 and the prices of United States bonds on Nov. 30, 

 1901, compared with the same items for the pre- 

 ceding two years, are given in the table on the 

 next page. 



The extremes for money on call at the New 

 York Stock Exchange during the year were 75 

 per cent., which was recorded at the time of the 



