260 



FINANCIAL REVIEW OF 1898. 



statement for twelve months of thccalcndar year end- 

 ing Dee. 31 showed merchandise exports of $1.25.").- 

 404,358 and imports of $684,968,239, making the 

 f-i\onil>le trade balance on the merchandise move- 

 ment $620,536,129. Exports of gold were $16,194,- 

 954 and imiMirts $158,151,852, a net import of $141.- 

 I56.N98. Kxports of silver were $53,797,104 and 

 imports $29. 1-,'!;,-.'.. Kxports of merchandise, gold 

 and silver, $1,325,486,410, imports $882388,887, 

 making an apparent favorable balance of $508.250,- 

 079. Kx ports of manufactures were $307.924,994. 



Money. The most striking feature of the money 

 market t'his year was the abundance of gold coin in 

 the Treasury, in the banks of this city, and in circu- 

 lation. The net irold held by the Treasury at the 

 end of 1897 was $100,911,547, while at the close of 

 the current year it was $240.529,176. On May 4. 

 1808, the net gold was $181,240,389, but the ex- 

 traordinary expenses of the war caused a reduction 

 by June 18 to $163,474,057. The proceeds of the 

 war loan, which were largely paid in gold, afforded 

 relief, the reserve grew rapidly, and on Oct. 7 it was 

 $245,063,796, the highest point ever attained. Then 

 followed a reduction, due to the increased use of 

 gold in disbursements, but in November the reserve 

 vered. and on Dec. 17 it stood at $246.027,638. 

 At the beginning of the year the associated banks 

 of New York held $106,588,500 specie, largely con- 

 M.-ting of gold. By July 2 this had increased to 

 $ 186,071 ).2< >o. Then came a reduction, caused by 

 payments for the 3-ner-cent. bonds, to $128,899,800 

 by' Sept. 17, followed by a recovery to $169,756,300 

 by Dec. 81. The amount of gold reported by the 

 Treasury in circulation Jan. 2, 1898, was* (547,568.- 

 360, and on Jan. 2, 1899, $667.796.579, a gain during 

 the year of $120,228.219. Gold was so abundant 

 during the last half of the year that payments of 

 the metal for duties at the New York customhouse 

 were very largely in this coin, reaching 80.5 percent. 

 in December. Still another notable fact is that 

 there was a wide distribution of money throughout 

 the country, and even in comparatively remote agri- 

 cultural sections the bank reserves were so large 

 that money ruled at abnormally low rates. 



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. 3, 

 1899, compared with the same items for the pre- 

 ceding two years, are given in the following table : 



$635,573,800 by Oct. 1, loans were again increased, 

 reaching the unprecedented total of $718,308,700 

 on Dec. 31. The movement in legal tenders was the 

 reverse of that for specie, these notes being more 

 desirable for circulation. The amount held at the 

 opening of the year was $87,074,200. This was in- 

 creased to $104,150,300, the maximum, by Feb. 4. 

 Then came a decrease to $49,029,200, the minimum, 

 by May 7, followed by an increase to $63,462,000 by 

 July 2J and the amount at the end of the year was 

 $55,184,100. Deposits were $685,592,500 at the be- 

 ginning of the year, rising to $738.683,300 by Feb. 

 11, falling to $658.503,300, the minimum, April 2:), 

 arid reaching the unprecedented maximum, $S2:>.- 

 037,700, Dec. 31. The surplus reserve was $22,2li4,- 

 575 at the beginning of the year. The maximum, 

 $62,206,250, was reached June 18, and the mini- 

 mum, $4,240,400, Sept. 17. The amount at the close 

 of the year was $19,180,975. 



Money on call loaned at the Stock Exchange dur- 

 ing the year at 6 per cent, and at 1 per cent. The 

 higher rate was recorded during the first week in 

 January and again in September, the market being 

 influenced at the first-named period by operations 

 incident to the January settlements, and in Septem- 

 ber by the concurrent drain of money from th>i 

 banks into the Treasury for bond payments and to 

 the interior for the crop movement. With thes<5 

 exceptions, the money market had an easy tendency, 

 and the weekly average was from 1| per cent, to 3JJ 

 per cent., the latter in April, until the fall months, 

 when the average was about 2 per cent., reflecting 

 an increased demand resulting from the large busi- 

 ness in stocks and other securities. With the ex- 

 ception of a brief period during March and in April, 

 when the situation was disturbed by the events an- 

 terior to the outbreak of the war with Spain, money 

 on time was in abundant supply, and though the 

 demand was only fair, rates were not unusually low. 

 The apprehension of widespread derangements of 

 the money market as the result of war, which led 

 to large withdrawals of deposits by the interior 

 banks and more or less hoarding of money, was 

 quickly dispelled after the signal victory of Commo- 

 dore Dewey at Manila, and rates for sixty-day money, 

 which ranged from 3^ per cent, to 6 per cent, in 

 March and April, fell to 3 per cent, in May, and to 

 2 per cent.' in July, while ninety-day to six-months' 

 money dropped from 6 per cent, in March and April 



The loans of the New York associated banks at 

 the beginning of January were $609.776.900. After 

 rising to $646,915,200 by Feb. 19, the disturbances 

 <<< asioned by the disaster to the " Maine" caused a 

 reduction to $570,198,100. the minimum of the year, 

 by April 30. Then confidence \vns restored by tin- 

 naval victory at Manila, and loans rapidly increased 

 to $672,173,900 by Sept. 3. After a reduction to 



* Extended 2 per cents. 



to 3 per cent, in May, and to 2 per cent, in June. 

 In the fall rates were a little firmer, ruling at 2-J to 

 3 per cent, for sixty-day, and at 3 to 4 per cei.t 

 for ninety-day to six-months', until December, when 

 money for the last-named periods was obtainable at 

 3 per cent. Commercial paper commanded from 3 

 per cent, to 6 per cent, for sixty- tp ninety-day in- 

 dorsements, until May, influenced by the conditions 



