FINANCIAL REVIEW OF 1900. 



219 



merce of the country, which during the fiscal year 

 ending June 30 for the first time in our history 

 passed the two-billion-dollar mark, being $2,244,- 

 424,206, was $2,307,102,970 in the current calendar 

 year. Moreover, the imports of manufacturers' 

 material and the exports of manufactured goods 

 were larger than ever before, and our exports were 

 not only greater, but they were more widely dis- 

 tributed throughout the world than in any preced- 

 ing year. Exports of manufactured goods amount- 

 ed to $432,284,360 during the calendar year, and 

 our manufacturers are now successfully competing 

 with those abroad in nearly all the markets of 

 the world. 



The enormous excess of merchandise exports 

 over imports in the last four calendar years, 

 amounting to $2,103,194,933, and the fact that 

 after deducting the visible liquidations, through 

 the movement of gold and silver, of this balance 

 there remains a vast sum unaccounted for except 

 through the return of an unknown amount of 

 stocks and bonds, have led to renewed efforts to 

 revise, on a more satisfactory basis than hereto- 

 fore, estimates of the amount which is known as 

 the " invisible " adverse balance of trade. This 

 balance includes freight, insurance, undervalua- 

 tions of imported goods, interest on securities held 

 abroad, the amount expended by tourists less the 

 sum which is brought into the country by immi- 

 grants, the expenditures by American citizens re- 

 siding abroad, and other items which necessarily 

 must, as Avell as the return movement of securities 

 above noted, be estimated. The amount of such 

 " invisible " adverse balance is admitted to be not 

 less than $150,000,000 annually, and some bankers 

 who have given the matter much study claim that 

 it is double this sum. Whatever may be the 

 amount, in order to arrive at an approximation 

 of the actual balance of international indebtedness 

 this invisible annual adverse balance must be de- 

 lucted from the apparent balance which is the 

 sum of the excess of exports over imports of mer- 

 chandise and gold and silver coin and bullion 

 ind the result should show approximately the 

 imount of unliquidated foreign indebtedness upon 

 which to base economic estimates. 



The following tabular survey of the economic 

 Dnditions and results of 1900, contrasted with 

 hose of the preceding year, is from the Commer- 

 cial and Financial Chronicle: 



Money. Influenced by the large customs re- 

 eipts of the Government during the first four 

 lonths of the year, which receipts consisted al- 

 lost wholly of gold, and by accretions from do- 

 lestic mines, the gross gold holdings of the Ti'eas- 

 ury gradually increased from $398,032,027 at the 



end of 1899 to $420,989,371 at the close of April. 

 The withdrawals of gold for export in May were 

 nearly counterbalanced by augmented receipts 

 from the sources above noted, and after the middle 

 of the year gold exports were more than offset 

 by importations at San Francisco of gold from 

 Australia, and in October from Europe, and by 

 bullion from the Yukon, which passed through 

 the Pacific coast assay offices, so that by the end 

 of October these gross gold holdings were $458,- 

 266,143. The amount held at the end of the year 

 was $479,349,251. The net gold in the Treasury 

 at the close of 1899 was $236,909,230, while at the 

 end of 1900 it was $215,719,872, this result being 

 largely due to an increase in gold certificates 

 from $161,122,797, Dec. 31, 1899, to $263,629,379 

 at the corresponding date in 1900. The circu- 

 lation statement of the Treasury reported that 

 on Jan. 1 the amount of gold was $617.977,830 

 and of gold certificates $161,122,797, while the total 

 of all forms of metallic and paper money in circu- 

 lation on that date was $1,980,398,170, making a 

 circulation per capita of $25.73. The statement 

 of Jan. 1, 1901, shows that the amount of gold in 

 circulation was $629,192,578, of gold certificates 

 $232,787,929, and of all forms of metallic and 

 paper money $2,173,251,879, making a per capita 

 circulation of $28.19. 



The cash holdings of the New York associated 

 banks at the beginning of the year were $198,- 

 996,000, of which $144,001,700 consisted of specie. 

 These holdings were increased to $231,594,300 by 

 Feb. 10, chiefly in consequence of a return flow 

 of money from the interior, but they fell to 

 $205,846,400 by March 24, more or less rapidly 

 recovering thereafter to $252,950,200, the maxi- 

 mum of the year, Sept. 1, when the specie was 

 $179,291,900, influenced by the disbursements of 

 premiums upon bonds refunded under the pro- 

 visions of the act of March 14. Then came a re- 

 duction in the cash holdings to $212,379,000, Nov. 

 10, caused by the withdrawals of money for the 

 crop movements, followed by a recovery, and the 

 amount held at the end of the year was $225,- 

 073,200. The loans of the banks at the beginning 

 of the year were $677,797,000, and they gradually 

 increased to $763,203,100, March 10. After a fall 

 to $739,331,000, March 24, there was a notable gain 

 due to loans upon fundable bonds and also to 

 hypothecations of securities bought in this market 

 for European account, and the maximum for the 

 year, and indeed on record, was reached Sept. 25, 

 when the loans were $825,830,600. The reduction 

 of cash above noted caused a liquidation of loans, 

 and they were reduced to $785,656,500, Nov. 10, 

 after which there was a recovery to $796,457,200 

 by the end of the year. Deposits at the beginning 

 of January were $748,953,100, the minimum of the 

 year. There was a rise to $829,917,000, March 3, 

 followed by a fall to $800,116,400, March 24. Then 

 came a recovery to $907,344,900, Sept. 15, suc- 

 ceeded by a decline to $831,091,800, Nov. 10. At 

 the end of the year the deposits were $854,189.200. 

 The surplus reserve was at the maximum ($30,- 

 871,275) Feb. 3, and at the minimum ($2,686,425) 

 March 17. While the cash, loans, and deposits 

 were advancing during the spring and the summer 

 the surplus reserve increased to $28,125,950 by 

 Aug. 11. Then came a fall to $2.947,700 by Oct. 20, 

 followed by a recovery, and the surplus at the 

 end of the year was $11,525,900. 



The condition of the New York Clearing House 

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

 and the prices of United States bonds on Jan. 2, 

 1901, compared with the same items for the pre- 

 ceding two years, are given in the following 

 table: 



