FINANCIAL REVIEW OF 1901. 



lit close of July and in August, and there were 

 i'. -n some hopes entertained that corn conditions 



v,,.uld improve. These expectations, however, 

 \\ere only partially realized, and in Missouri and 

 in other 'States in that section the crop was al- 

 most a complete failure. In Kansas, however, the 

 wheat crop wa> the largest on record. The yield 

 of hav and potatoes was reduced much below the 

 average, and the destruction of pasturage on the 

 ranges by the drought caused heavy losses of beef- 

 eattle. The report of the Bureau of Agriculture 

 for Aug. 1 showed an average of 54 per cent, for 

 corn, a deeline of '27.3 per cent, in the previous 

 month. The average in Kansas was 19, for Mis- 

 souri m. for Nebraska 30, for Illinois 51, and for 

 Iowa and Indiana 57 per cent., each indicating 

 very considerable damage in the Central corn 

 belt. The yield of corn, based upon conditions 

 in (Vtoher, was estimated at not more than 1,359,- 

 >7<UMX) bushels, against 2,105,102,516 bushels in 

 the previous year. The wheat yield, however, was 

 then calculated at 644,835,000 bushels. The 

 Oetoher report of the Department of Agriculture 

 showed an average condition of corn 52.1 per 

 cent., the lowest ever recorded. The indicated 

 yield of oats, on an average condition of 83.7 

 j>er cent., against 89.2 per cent, last year, was 

 MM) .7 56,000 bushels, against 809,125,989 bushels in 

 1900. The estimated crop of barley was 70,631,000 

 bushels, against 58,925,833 bushels last year. 

 Owing to the failure of the corn crop high prices 

 prevailed, and these tended to check exports. The 

 demand for wheat for shipment to Europe, where 

 the crop was generally deficient, caused high 

 prices for this cereal, and early in the fall some 

 of the farmers in the Northwest withheld their 

 wheat from the market in expectation of an ad- 

 vance. The yield of cotton was above the aver- 

 age, and it was estimated at 10,560,417 bales. 

 Though ocean freights were low, because of the 

 coni|>etition of vessels released from the South 

 African transport service, the export movement of 

 cotton was small until October, planters holding 

 the staple for higher prices. These low ocean 

 freights failed to stimulate shipments of grain 

 from the Northern ports, and during a portion of 

 the active export season many of the regular 

 steamers were compelled to sail in ballast owing 

 to inability to obtain grain cargoes. 



Foreign Exchange. The exports of domestic 

 and foreign merchandise for the eleven months 

 ending Nov. 30, 1901, were $3,562,871 below 

 those to the same date in 1900, and the imports 

 of merchandise were $39,972,100 greater. The ex- 

 cess of merchandise exports over imports for the 

 eleven months was $528,068,764, against $571,603,- 

 73."> for the corresponding period in 1900. The exr 

 cess of exports over imports of merchandise and 

 gold and silver coin and bullion for eleven months 

 was $553,407,425, against $583,846,191 for the 

 same time in 1900. Gold exports were $2,790,- 

 15 in excess of imports for eleven months in 1901, 

 against $9,638.383 imports over exports for the 

 corresponding period in 1900. 



The foreign exchange market was strong in 

 January, influenced by easy monetary conditions 

 this center and by higher discounts in London, 

 which encouraged the remittance of bankers' bal- 

 ances for employment at the British capital. The 

 market was also affected' by the return to this 

 country from Europe of large amounts of Ameri- 

 can securities, which had been held abroad by in- 

 vestors and been bought by speculators who were 

 induced to sell by the high prices ruling for these 



iroporties in our market. This movement stimu- 

 lated a demand for sterling exchange for remit- 

 tance, and after opening at $4.811 to $4.82 for 



sixty-day and at $4.85f to $4.86 for sight bills,, 

 there was a gradual advance to $4.84! to $4.84 A, 

 for the former and to $4.88 to $4.88! for the latter 

 by the end of the month. These high rates for 

 exchange made profitable shipments of gold, and 

 $8,083,869 of the metal was exported to Paris, the 

 requirements for gold being greatest at that cen- 

 ter. The market was irregular in February, tend- 

 ing downward for sight exchange, partly in con- 

 sequence of a reduction in the Bank of England 

 rate from 5 per cent, to 4 per cent. After opening 

 at $4.841 to $4.84|, sixty-day bills advanced to 

 $4.84| to $4.85 by the 4th, declined to $4.83| to 

 $4.84 on the 20th, and the closing quotation was 

 the same as the opening. Sight bills opened at 

 $4.88 to $4.88!, rose to $4.88! to $4.88* on the 

 4th, fell to $4.87 to $4.87! on the 18th, and they 

 closed at $4.87*, to $4.87|. The requirements for 

 remittance were met without making necessary 

 shipments of gold. In March the market recov- 

 ered, and it was generally strong. Sixty-day bills 

 opened at $4.84 to $4.84!, rose to $4.85 to $4.85J 

 by the 28th, and they closed at $4.84| to $4.85. 

 Sight bills opened at $4.87! to $4.87*, advanced to 

 $4.88^ to $4.88* by the 28th, and they were $4.88 

 to $4.88! at the end of the month. "Gold to the 

 amount of $245,318 was shipped to Paris on the 

 30th. In April the tone was strong for the 

 greater part of the month, closing easier. The 

 rate for sixty-day bills at the opening was $4.85 

 to $4.85!. There was an irregular advance to $4.85 

 to $4.85! by the 22d, followed by a decline to 

 $4.84 to $4.84f by the close. Sight sterling 

 opened at $4.88! to $4.88*., and it thereafter 

 fluctuated between this rate and $4.87 1 to $4.88, 

 closing at that quotation. The shipments of gold 

 to Europe were $4,819,435. In May the market 

 was strong, chiefly influenced by a demand to re- 

 mit for securities. It is noteworthy, however, 

 that it was not directly affected by the crisis 

 resulting from the Northern Pacific corner, though 

 after the panic the increased movement hither 

 from Europe of American securities, which wa 

 due to the above-mentioned corner, greatly con- 

 tributed to the strength of the market. Owing 

 to the urgent demand for remittance, $10,073,007 

 gold was exported, principally to Paris and Ber- 

 lin. The quotation for sixty-day bills at the open- 

 ing was $4.84J to $4.84|, and there was an ad- 

 vance to $4.85 to $4.85! by the close of the month. 

 Sight bills were $4.87| to $4.88 at the opening, and 

 they closed at $4.88! to '$4.88*.. In June money 

 was relatively higher in New York than in Lon- 

 don, the Bank of England rate having been re- 

 duced to 3J per cent, on the 6th and to 3 per cent, 

 on the 13th, and comparatively low reserves of 

 the New York associated banks tended to make 

 our money market firm. With the object of tak- 

 ing advantage of the low rate for discounts in 

 London, those of our bankers who were largely 

 interested in railroad and other combinations 

 negotiated exchange loans upon stock collateral 

 to such an extent as to create more or kss of an 

 urgent demand for exchange. At the same time 

 there was a large inquiry for remittance for se- 

 curities sold in the stock market for European 

 account, and the supplies of exchange being in- 

 sufficient to meet these requirements, the tone 

 was strong. After opening at $4.85 to $4.85!, 

 sixty-day bills advanced by the 13th to $4.85| to 

 $4.86, later declining to and closing at $4.85! to 

 $4.85*.. Sight bills opened at $4.88! to $4.88*, but 

 after the 18th they fell to $4.87* to $4.87|, recov- 

 ering by the close of the month to $4.87 1 to 

 $4.88. The gold exports during the month 

 amounted to $4,910,307, and they were wholly to 

 Germany, where there was more or less financial 



