The Helena independent. [volume] (Helena, Mont.) 1875-1943, 1891-03-21
DECLINES TO EXCHANGE.
Mint Director Leech Sets Forth the
/. Views Of the Treasury :
Department Z
May Exchange Gold Bars for Coin.
Make : Charge, or
Refuse.
Policy Pursued Not Indicative Of Distrust.
Apprehension or Deficiency
in the Gold supply.

New York, March 2O,--Director of the
Mint Edward q. Leech, who 10 here on
business, said in an interview III regard to
the gold bar subject: II did not come
with the definite purpose to ask any views
of the bankers on the subject at all, but
being here, l incidentally met bankers and
business men with whom | am personally
acquainted. / am Satisfied that the gold
bar policy is a good one and that it will be
commended by the people. of the country
and by the bankers and business men Ren-
orally"
with whom did you converse about it?"
he was asked.
with all the leading bank presidents.
The views Of the leading merchants and
bankers in regard to the policy of the ad-
ministration in declining to furnish ship-
pers of gold with fine gold bars for ship
ment abroad, / ascertained incidentally
and found that the sentiment is universal
that the government acted wisely in this
decision" .
In reply to other inquiries Leech said:
''This proposition to decline to exchange
gold bars for gold coin has been a favorite
project of the mint for some time; indeed,
ever since | have been director of the mint.
j OuA ia VA0 OoOnc - -
in 1882, which authorized the s~uperintend-
ents of minis to give gold bars in exchange
for gold coin of equal value. The late Sec
rotary Window and myself were disposed
to think the law was intended to give the
department discretion, but upon submit
ting 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 max any
charge for such exchange. Th result was
that the treasury department. was utterly
helpless i'll the matter of gold ship
the late secretary and myself con-
gress amended the Law at its last
session by making the exchange discretion
airy with the secretary and allowing the i'm
position of a charge equal to the cost of
manufacturing the bars. Tuesday last !
was notified by the superintendent of the
assay Office in New York that the sum OF
one million dollars was wanted in gold
bars for shipment. The exchange at that
date was only 1854, showing that the
movement was not a genuine exchange
movement-that is, that it was more profit
able to buy exchange on London than to
bodily ship gold at that rate of exchange
1t is what is known as q special shipment,
and upon my recommendation. nd with
the concurrence of the administration, the
secretary decided to exercise the other
alternative allowed BY the change in the
law, and the treasury department declined
to furnish the gold bars in exchange fol-
gold coin for shipment. "e
1.-The views of the department are simply
these: That it is undesirable and against
the public policy for the government to
furnish gold in its most convenient form at
a seaboanl port to shippers of gold. And
we propose to exercise the same discrimi-
nation that has been exercised in European
countries in regard to the export of gold
that is, we dosnot propose to facilitate II,
This policy is exercised now, not because
there is any change in the monetary stu
alton in the United States, and not because
there is any deficiency in the gold supply,
or a distrust that there may be any de-
mand for gold. but solely because the law is
now for the first time operative which per.
mlts us to exercise this discretion"