306 



FINANCIAL REVIEW OF 1890. 



The following is the New York Clearing-House statement of totals at the beginning of each 

 quarter of 1890 and at the end of the year : 



Foreign Exchange. The imports of mer- 

 chandise for the year ending Dec. 31, 1890, were 

 $52, 796,817 above those for 1889, and the exports 

 of domestic and foreign merchandise were $30,- 

 517,330 more. The excess of merchandise ex- 

 ports over imports for the year was $34,304,895, 

 against $56,584,382 for the year 1889. There . 

 was an excess of $7,828,879 exports over imports 

 of specie and bullion in 1890, against $60,403,796 

 in 1889. The excess of exports over imports of 

 merchandise, coin, and bullion this year was 

 $42,133,774 against $116,988,178 for 1889. The 

 trade balance in favor of this country was $13,- 

 510,104 in January and $8,156,042 in February. 

 By April there was a change to an adverse bal- 

 ance of $6,740,590, which was increased in May 

 by $14,864,329, and in June by $19,923,579. 

 Thereafter there was a gradual reduction, July 

 showing $10,825,435 and August $4,609,080. In 

 September this balance was $8,504,160, but in 

 October there was a change from an adverse to a 

 favorable balance of $21,496,890. In November 

 this was increased by $24,335,463, and in Decem- 

 ber by $33,277,436. 



The market was steady to strong during Janu- 

 ary, posted rates moving from $4.80| to $4.84 

 for long, and from $4.84 to $4.88 for short. 

 In February the tone was firm until toward the 

 close, when there was an easier feeling, due to 

 offerings of bills against negotiations of securi- 

 ties, and also to a light inquiry owing to the fact 

 that merchants were disposed to prepare for the 

 contemplated change in the tariff, and therefore 

 they refrained from remitting. The rates at the 

 close of the month were $4.81| for sixty-day and 

 4.85 for sight, a reduction of three cents per 

 pound sterling, compared with the highest in the 

 previous month. In March the market was act- 

 ive and strong, influenced in part by the po- 

 litical crisis in Germany, resulting from the 

 resignation of Prince Bismarck, and by selling 

 of securities for European account, and posted 

 rates at the close were 4.85 for long and $4.88 

 for short. Early in April the demand to remit 

 for stocks sold by the arbitrage houses carried 

 the market up to $4.86| for long and $4.88^ for 

 short, but after the middle of the month free 

 offerings of bills against securities, bought for 

 European account, caused a decline to $4.85 for 

 sixty-day and $4.87| for sight by the close. In 

 May continued purchases of stocks by the arbi- 

 trage houses made the market heavy, but until 

 the 19th there was no change in rates. Then they 

 fell to $4.85 for sixty-day and $4.87 for sight, 

 and the tone was steady at the close. The mar- 

 ket was easy early in June, but it grew stronger 

 by the llth, when rates moved up to $4.86 for 

 long, and $4.88| for short, and on the 14th, 

 $1,000,000 gold was sent to Berlin, followed a 

 few days afte- by $2,500,000 more, and by $500,- 

 000 to Paris, but the metal was not shipped 



strictly as an exchange operation. On the 20th 

 rates fell half a cent per pound sterling, and by 

 the close they stood at $4.84 for long and $4.88 

 for short. The market was active early in July, 

 opening at $4.85| for sixty-day and $4.88| for 

 sight, falling to $4.85 for the former and $4.88 

 for the latter, and then reacting to $4.85| for 

 sixty-day and $4.89| for sight, closing at these 

 figures. On the 12th $2,000,000 gold was sent to 

 London as an exchange operation. On the 16th 

 $500,000, on the 19th $700,000, and on the 26th 

 $1,000,000 went forward on special order, as 

 rates for sight were below the gold point. On 

 the 31st $2,400,000 were shipped as an exchange 

 operation, the sight rate for actual business then 

 permitting of the movement. Nearly all this 

 gold was sent because of the unsettled condition 

 of the London market, resulting from the finan- 

 cial crisis in the Argentine Republic. The po- 

 litical revolution there broke out on the 26th, 

 but it was suppressed on the 29th. At the open- 

 ing of August exchange was firm at $4.85^ for 

 long and $4.89| for short, but it gradually be- 

 came unsettled by reason of active money, and it 

 closed at $4.82| for sixty-day and $4.86 for sight. 

 The gold shipments during the month amounted 

 to $8,306,000. The tone for exchange was firm 

 early in September at $4.83 for long and $4.86^ 

 for short, but by the llth there was a reduction 

 to $4.82 for sixty-day and $4,85 for sight, in 

 consequence of active money, and on the 22nd 

 rates were lowered to $4.81* for long and $4.85 

 for short. On the 24th the Bank of England 

 rate was advanced to 5 per cent., and this caused 

 a rise in exchange to $4.82 for sixty-day and 

 $4.87 for sight, by the close of the month. In 

 October the rates at the opening were $4.83 for 

 long and $4.88 for short, but liberal offerings of 

 bills drawn against cotton and a light mercan- 

 tile inquiry caused a decline, and the market 

 closed heavy, at $4.81 for sixty-day and $4.85| 

 for sight. Early in November, the market was 

 dull and more or less unsettled, with rates at 

 $4.8pi for long and $4.85| for short, bankers 

 declining to draw in view of the strained condi- 

 tion of the London market. After the 7th, when 

 the Bank of England rate was raised to 6 per 

 cent., until the 20th scarcely any business was 

 done in sterling, and rates were almost wholly 

 nominal. On the last-named date the market 

 resumed its normal condition, and then followed 

 a strong tone in response to demands for de- 

 ferred remittances and also because of a scarcity 

 of commercial bills, the movement of cotton 

 having been interrupted by the stringency in 

 money here, and the inability of shippers to dis- 

 pose of their drafts early in the month. The 

 market closed with posted rates at $4.82 for long 

 and $4.88| for short. During the first week in 

 December exchange was heavy in consequence 

 of the absence of demand and the pressure of 



