290 



FINANCIAL REVIEW OF 1891. 



being, as far as possible, to check the export of 

 gold. On the 18th an application for $1,000,000 

 more gold in bars having been refused by the 

 Treasury Department, the shippers were com- 

 pelled to take coin in the proportion of four sev- 

 enths double eagles, two sevenths eagles, and one 

 seventh half-eagles, and, as this added to the cost 

 of the shipment, exchange advanced to $4.87 for 

 sixty-day and $4.89! for sight. On the 21st 

 there was a further export of $2,275,000 in gold 

 coin. Exchange fell off on the 26th to $4.86! for 

 long and $4.89 for short, and $700,000 gold coin 

 was sent to Germany on the 28th, but the pro- 

 portion was changed to two fifths each of double 

 eagles and eagles and one fifth half-eagles. Ex- 

 change was strong early in April at $4.87 for six- 

 ty-day and $4.89! for sight, but later, under the 

 influence of dearer discounts in London, the long 

 rate was reduced to $4.86 and short remained at 

 $4.89| until the 27th, when it advanced to $4.90. 

 Gold coin to the amount of $13,140,000 was 

 sent to Europe, principally Germany, during the 

 month. Exchange was firm at $4.86 for sixty- 

 day and $4.90 for sight early in May. On the 

 6th the tone became easier, because of a premium 

 of a half penny per ounce paid by the Bank of 

 England in order to attract American gold coin 

 to London, and shippers of the metal were free 

 sellers of sterling, thus causing a reduction in 

 the rates to $4.85 for long and $4.89 for short. 

 Subsequently there was a fall in the former to 

 $4.84!, because of dearer discounts in London. 

 On the 16th the price of gold coin was further 

 advanced by the Bank of England to 76s. 6!f. 

 per ounce, and this caused a fall in sterling to 

 $4.84 for sixty-day and $4.88 for sight. Soon 

 after the price of gold was reduced in London 

 to 76s. 6d. per ounce, and on the 25th exchange 

 rose to $4.84! for long and $4.88! for short, and 

 on the following day to $4.85 for the former 

 and $4.89 for the latter, and gold coin to the 

 amount of $3,000,000 was shipped, making $26,- 

 061,000 for the month. Exchange opened at 

 $4.85! for sixty-day and $4.89! for sight in June. 

 A reduction in the Bank-of-England rate on the 

 3d to 4 per cent, caused an advance in long bills 

 to $4.86, and a reduction in the bank rate on the 

 17th to 3 per cent, brought about a further rise 

 in sixty-day bills to $4.87!. During the last days 

 of the month liberal purchases of securities by 

 the arbitrage houses for European account, and a 

 lighter inquiry, made sterling heavy, and it closed 

 at $4.86! for long and $4.884 for short. Gold to 

 the amount of $16,200,000 was shipped to London 

 and Paris during the month, but the movement 

 to the first-named center was on special order 

 after the 5th. In July exchange opened at $4.86 

 for sixty-day and $4.88 for sight, and under the 

 influence of easier discounts in London and mod- 

 erately large offerings of commercial bills it grad- 

 ually fell to $4.84| for sixty-day and $4.87 to 

 $4.87! for sight. Gold to the amount of $6,500,- 

 000 was shipped to Europe during the month, 

 all of it on special order, and principally to the 

 Bank of France, that institution contracting 

 with a banker in New York to supply the metal, 

 and entering into stipulations that when it should 

 be required later in the season no premium would 

 be demanded. In August exchange opened at 

 $4.84 to $4.85 for long and $4.87 to $4.87! 

 for short, and, influenced by offerings of com- 



mercial bills and of drafts against stocks bought 

 for European account, th> re was a gradual fall 

 to $4.83 for sixty-day and $4.85! for sight. The 

 outward movement of gold had then ceased, and 

 at the close of the month it was announced that 

 $750,000 of the metal had been shipped from the 

 Continent for New York. In September ex- 

 change opened at $4.83 to $4.83! for sixty-day 

 and $4.85 to $4.85! f r sight, and under the 

 influence of liberal offerings of arbitrage and 

 commercial bills there was a fall to $4.81 for 

 long and $4.84 for short by the close ; but the 

 tone then was firmer by reason of a demand to 

 remit for stocks sold for European account. 

 The imports of gold during the month were 

 $6,856,000. In October exchange opened at 

 $4.80 to $4.81 for long and $4,84 for short, but 

 owing to a demand to remit for stocks sold for 

 European account, and also because of a scarcity 

 of commercial bills, there was an advance to 

 $4.81! for sixty-day and $4.85 for sight by the 

 middle of the month. The tone was easier there- 

 after to the close, especially for short, lower dis- 

 counts in London increasing the demand for 

 long bills. The rates at the end of the month 

 were $4.81 to $4.81! for sixty-day and $4.84! 

 for sight. The arrivals of gold from Europe 

 during October were $19,112,000 A better sup- 

 ply of commercial bills, chiefly drawn against 

 cotton, caused the market to fall off to $4.80! 

 for long and $4.84 for short soon after the open- 

 ing of November, and it was also effected by 

 dearer money on the Stock Exchange, but during 

 the second week a scarcity of grain bills, owing 

 to shipments being delayed by the absence of 

 vessels, tended to make the market firmer at 

 $4.81 to $4.81! for sixty-day and $4.84! for 

 sight. Then came a rise by the 18th to $4.82 

 for long and $4.85 for short, and the tone was 

 firm thereafter to the close, arbitrage as well 

 as commercial bills being scarce. The arrivals 

 of gold during the month were $3,557,000. In 

 December the market opened at $4.82 for long 

 and $4.85 for short, but a light supply of com- 

 mercial bills and, later, a good inquiry to remit 

 for interest and in settlement of mercantile cred- 

 its caused a gradual advance by the loth to 

 $4.83 for sixty-day and $4.86 for short. When 

 the demand was satisfied, rates fell off to $4.82 

 for long and $4.84! for short. The market 

 closed at $4.82! to $4.83 for sixty-day and $4.85 

 to $4.85! f r sight. Gold arrivals from Europe 

 amounted to $2,774,000. 



The Stock Market. The highest prices for 

 leading stocks during the year were recorded in 

 August and December, and the lowest from May 

 to July. The market opened strong in January, 

 and for the first ten days the tendency was up- 

 ward, with the Grangers and Delaware, Lacka- 

 wanna and Western leading. Louisville and 

 Nashville was favorably influenced by the dec- 

 laration of a cash dividend of 2! per cent. ; the 

 Villards improved on news of the resumption of 

 business by Decker, Howell & Co., who sus- 

 pended in Nov., 1890, and the Gould specialities 

 and all Western properties were freely bought 

 on reports that the managers of these roads 

 .were entirely in accord .as to the plan for new 

 regulations for the Western Traffic Association. 

 The tone of the market was strong until the 

 14th. A leading feature on the 12th was a rapid 



