FINANCIAL REVIEW OF 1899. 



281 



it was seen that the yield was not likely to be 

 as large as was expected, and the revised esti- 

 mates placed the crop at not exceeding 9,500,000 

 bales. The most striking feature of the year was 

 the steady advance in the price of cotton. Eng- 

 lish spinners, influenced by the conviction that 

 there would be a large yield of the staple, re- 

 frained from buying early in the season. The 

 price advanced in response to liberal purchases 

 by Southern and Northern spinners, and this fact 

 also seemed to deter buying by English manufac- 

 turers, though the Continental spinners bought 

 largely. Toward November, however, the British 

 manufacturers appeared to realize the fact that 

 the crop would be below their early expectations, 

 and then their purchases contributed to main- 

 tain the advance in the price of the staple to the 

 end of the year. It is noteworthy that the ex- 

 ports of cotton to Great Britain for four months 

 of the cotton year ending Dec. 31 were only 518,- 

 410,203 pounds, against 1,166,756,962 pounds for 

 the same time in 1898, while exports to France 

 were 223,140,120 pounds for the four months in 

 1899, against 252,127,048 pounds for the same 

 period in 1898, and exports to Germany were 

 363,544,165 pounds for four months in 1899 and 

 550,868,410 pounds for the same time in 1898. 

 Exports to Japan increased from 12,094,822 

 pounds in the cotton year 1898 to 49,660,787 

 pounds in the cotton year 1899. Another factor 

 which more or less influenced the export move- 

 ment not only for cotton, but for breadstuff's and 

 for all exportable products, was the high ocean 

 freight rates, which were caused by the with- 

 drawal from the regular transportation lines of 

 large numbers of steamers which were employed 

 by the British Government for the transport of 

 troops and military supplies to the seat of war 

 in South Africa. The dearth of transportation 

 facilities also materially checked the export move- 

 ment in other commodities. The following shows 

 the yield and the value of the crops for the years 

 1898" and 1899 on the basis of the price at New 

 York at the beginning of the years 1899 and 1900: 



later by an inquiry for sterling for remittance 

 against securities sold for European account. 

 Toward the end of the month, however, the in- 

 vestment inquiry relaxed, commercial bills be- 

 came smaller in volume, and the marketing of 

 maturing investment drafts caused a slight re- 

 cession in rates for short sterling. The tone was 

 firm at the close of the month, with rates for 

 sixty day, $4.82f to $4.83; for sight, $4.842 to 

 $4.85; and for cables, $4.851 to $4.85$. The 

 tone was strong in February, with a good demand 

 to remit for securities bought in London for 

 New York account, and there was a dearth of 

 commercial bills. The market opened with sixty- 

 day sterling, $4.831 to $4.83 J; sight, $4.851 to 

 $4.85^; and cables, $4.85| to $4.86. The high- 

 est and the closing rates for the month were 

 $4.84-1 to $4.84J for long, $4.86| to $4.86f for 

 short, and $4.87 to $4.871 for cables. The Bank 

 of England reduced its discount rate from 3 

 per cent, to 3 per cent, on Feb. 2, and the Im- 

 perial Bank of Germany on Feb. 21 reduced its 

 rate from 5 to 4 per cent. The market opened 

 weak in March, influenced by higher rates for 

 money, and also by free offerings of bills against 

 the Central Pacific readjustment scheme, and 

 rates were $4.841 to $4.84 for sixty-day, $4.86 

 to $4.86| for sight, and $4.86| to $4.87 for 

 cables. Later easier rates for money in our mar- 

 ket and a firmer tone for discounts in London 

 caused a slight advance in sterling, after which 

 the market grew dull, and it was without special 

 feature until toward the end of the month. Then 

 there was a very strong tone, influenced by ru- 

 mors that preparations were being made for the 

 remittance of the Philippine indemnity, it being 

 assumed that when the money was paid by the 

 United States Government it would be remitted 

 through exchange, thus causing more or less of 

 an urgent inquiry for sterling. The market was 

 also influenced by a demand to remit for securi- 

 ties sold for European account, and there was 

 a notable absence of all kinds of bills. The .tone 

 was easier at the close, at a recession of one quar- 



Foreign Exchange. The exports of domestic 

 and foreign merchandise for the year ending Dec. 

 31, 1899, were $19,953,405 above those of 1898, 

 and the imports of merchandise were $163,881,123 

 greater. The excess of merchandise exports over 

 imports for the year was $476,654,100, against 

 $620,581,818 for 1898. The excess of exports over 

 imports of merchandise and gold and silver coin 

 and bullion for 1899 was $493,455,303, against 

 $503,278,544 in 1898. Gold imports were $5,815,- 

 553 in excess of exports in 1899, against $141,968,- 

 998 in 1898. 



The rates for exchange were low at the begin- 

 ning of the year, influenced by liberal supplies 

 of commercial bills, and imports of gold from 

 London to the amount of $1,500,000 were an- 

 nounced in the first week. Sixty-day sterling 

 was quoted at the opening of January at $4.8 1$ 

 to $4.82, while sight sterling was $4.841 to 

 $4.84i, and cables were $4.851 to $4.85^. Grad- 

 ually the market grew stronger, influenced by a 

 demand for seventy-day bills for investment, and 



ter of a cent from the highest rates to $4.841 to 

 $4.84* for sixty-day, $4.86^ to $4.86| for sight, 

 and $4.871 to $4.87 S for cables. High rates for 

 money during the first week in April tended 

 slightly to depress exchange, which, after open- 

 ing at the figures above noted, fell to $4.83f to 

 $4.833 for long, $4.85f to $4.86 for short, and 

 $4.86| to $4.87 for cables. Toward the middle 

 of the month there was a recovery, due to buy- 

 ing, which was supposed to be connected with 

 preparations to remit the Philippine indemnity 

 when it should be paid. The tendency was up- 

 ward to the end of the month, when rates were 

 $4.851 to $4.85 for sixty-day, $4.871 to $4.87 

 for sight, and $4.87 f to $4.88 for cables, the rate 

 for sight, it- may be noted, being close to the 

 gold-exporting point. When the fact appeared 

 that the remittance of the Philippine indemnity 

 would be made through exchange, which had 

 already been accumulated, the market for ster- 

 ling, after opening strong at $4.85| to $4.86 for 

 sixty-day, $4.87| to $4.88 for sight, and $4.881 



