New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-03-20
WY GOLD BARS CAN'T GO.
er.TEMENT OF THE DIRECTOR OF THE MINT
,,v LEIGH SAYS THAT THE TREASURY POLICY
re UNIVERSALLY COMMENDED


,rd q Ieech the Director of the Mint visited
- vork Yesterday, and when his tall and stalwart
- uas recognized downtown an impression cot
I'D that part Of his business in New-York was to
,ain the views OF bankers to the decision of
- government to withhold gold bars for export
. hs told Tribune reporter, who talked with him
p' ,he evening" that he had come from Washington
on,r On Assay Office business
~, AID not come with any definite purpose to ask
~ views of bankers on the gold bar subject at ALL"
.s,d. but being here, incidentally met bankers
~ hrsiness men with whom / ar personally ac.
,,ted am satisfied that the gold bar policy is
.ood one and that it will be commended by the
n,s Of the country and by bankers and business
men generally
with whom did you converse about it ?" asked the
reporter
., ,,s Chase National Bank the Bank of the Republic
"a others as well leading merchants. l found
49,. the action of the Department was COM
rdsd As l have told you, l came really
business connected with the Assay Office.
IT. views of leading merchants and bankers in regard
=. ,hs policy of the Administration in declining to
.-',sn shippers of gold with fine gold bars for ship
Ut abroad, ! ascertained incidentally, and have
.ud that the sentiment is universally that the Gov
..0rsnt has acted wisely in this decision"
m reply other inquiries put by the reporter, Mr.
Leech said:
aThis proposition to decline to exchange gold bars
r.. con coin has been a favorte project Of mine for
.oms time indeed si2ec l have been Director
:, the Mint l found the statute books a law
Enacted in 1882 which authorized the superintendent
a, the minis TO give gold bars in exchange for gold
op of equal value The late Secretary of the Treas
ury. Mr. Window, and myself were disposed to hold
that this law intended to give the Department disce
uon but upon submitting the matter to the Attorney
General he held that the statute was mandatory and
that we could not decline to exchange gold
bars for gold coin, nor could We nsHc
sny charge for such exchange. The result
WAS that the Treasury Department utterly helpless
In the matter Of gold shipments. Upon the recon-
mendaton of the late Secretary and myself, Congress
amended the law at its last session by making the ex
change discretionary with the secretary, and allowing
the imposition of a charge equal to the cost OF manu-
featuring the bars.
THE day after Congress adjourned, 100000 In
gold bars requested for export, and after con-
suaton with the secretary 1t was decided to I'M
moe a charge of four cents per hundred dollars in
value equivalent to $40 the amount OF bars asked
for We found that the shippers paid this charge and
that the shipment was made.
.On last Tuesday was notified by the Supcrin-
nden; OF the Assay Office in New York that 100000
were wanted In gold bars for shipment. Ex-
change at that date was only Ass Ia snow
inc that the movement was not genuine exchange
buy exchange on London than to bodily ship gold
al that rate of exchange. 1t was what is known as
a special shipment that is, a shipment OF eOd lor
a specific purpose, or what Is known aS an aroi'rase
and upon my recommendation ana WIFI
the concurrence of the Administration the secretary
decided to exercise the other alternative allowed oy
the change in the law, and the Treasury Department
declined 10 furnish gold bars in exchange for gold
coin for shipment.
The views of the Department are simply these
that it is undesirable and against public policy for
the Government to furnish gold in its most convenient
form at a seaboard port to shippers Of gold; and we
proposed to exercise the discrimination that has
been exercised BY European countries In regard 10
the export of gold-that is, We do not propose 10
facilitate it, shippers send coin or private
bars but we hold that il is not the duty OF the
Government, nor is it good pubic poncy
10 furnish them with fine bars, OF proved
ineness and full weight, for shipment
As matter OF fact 1t IS not as profitable to snip com
IS bars Coin is not always OF full standard fneness
. frequently abraded and naturally loses by abrasion
IN transition. Besides it has to be melted on tho,
,ter side OF the water and the result is that the net
esults to shippers not so satisfactory in The case
n coin as OF bars, which are always OF full weight
and are received readily by foreign banks at their
stamped weight and fneness
This policy is exercised now hot because Of any
change in the monetary situation of the United states
gold supply or any distrust that there may be any
demand for gold but solely because the law is now
for the first time operative which permits us tn eAer-
else this discretion AS matter OF fact, there IS
of gold in the Treasury of the United
States the amount at the present time being as nearly
a. my memory serves me, about three hundred million
dollars of which over one hundred and fifty million
dollars is free gold,' that is gold not held III trust ior
any purpose but available for the redemption OF the
Misunderstanding Indebtedness Of the United States
that is the legal.tender notes and Treasury notes.
.There has been no time recently when there has
been more free sold in the Treasury than at the
present. and this change Of policy upon the part Oh
the Administration has no connection Whatever Win
the question Of the ability OF the Government
o. the readiness Of the Government to redeem
lesal-tender notes in gold upon demand OF
the holder. The Treasury stands ready at any
moment 10 redeem any indebtedness of the Gov
eminent legally payable in coin OF standard value III
gold upon demand. This policy is exercised soieY
for the benefit of the country In that. as stated IL Is
not considered good policy to furnish Shippers
Of gold with bars of proved weight anu
fneness. which is the most convenient anu
profitable form OF gold for shipment, especially at
time when the rate of exchange not warrant such
shipments"
Mr.. Leech will return to Washington To-Day
A foolish ATTEMPT was made yesterday to creae thc
idea that the was not RaS When gold waS
asked Tor Assistant Treasurer Roberts spoiled Inc
attempt which evidently had speculative origin by
EXPLAINING that the sub Treasury had aiwaNs pad he
new treasury notes lie said II have never made
ruling on the point as 10 whether the ora i, ~
tifcaes which simply certificates OF dep st ua
Silver dollars would be paid in gold if that metal we're
asked for. do not say now that IL wouu 10 &c rho
but merely call attention to the Language u wv
silver certificates" u,,.,. .ox,teo- ,b,.
The language on this note says This ceruhGs thn
there have been deposited the Treasury Of the Ined
States ten silver dollars payable to the bearer Oh NC
nand."