New-York tribune., 1891-05-09
THE GOLD EXPORT MOVEMENT,
1T Is NOT UNUSUAL, NOR LARGE ENOUGH
TO CAUSE ALARM.
THE DIRECTOR OF THE MINT SHOWS THAT THIS
coUNTRY's STOCK OF GOLD is AMPLE.
IRr rEIEeRArn no THn rRIBUNE.I

THE DIRECTOR OF THE MINT SHOWS THAT THIS
coUNTRY's STOCK OF GOLD is AMPLE.
rBr TELEGRAPH TO TRrBUsE.I
Washington May s.-In view OF some recent
pressons of uneasiness over the shipment Of gold
bars and coin from this country to Europe, Mr. hech,
the Director Of the Mint, was asked to-day by cor
respondent Of The Tribune whether the present move
ment Of gold abroad was regaried by the Treasury
authorities as either unusual alarming In reply Mr.
Leech prepared the following Interesting and instructive
statement and analysis Of the situation. 1t the
whole question of the export and import iuctuatlon
of gold, and will admirably TO quiet any alarms
that may have arisen the threatened diminution
to any serious extentof the gold stock in this
Try.
"The present movement Of gold from the United
States" said Mr.. Leech, is not at all unusual, nor
is II large to excite any apprehension of serious
drain upon the gold stock of the United States This
is the season for the export Of gold om the United
States The total amount exported to date has been
as follows: Gold bars to Germany, "a, 3,5960O0; gold
coin 10 Germany 80 526 900; to France. $6,25000o;
to England. 6,1oo, ,Ooo-a total of S25,474ooO The
amount exported is not very considerable compared
with some previous years.
'It will be remembered that during the fiscal year
1875 the exports OF gold from the United States ag
gregated S06,esO,977, while the imports were only
696, ,793, and in the succeeding the exports
OF gold $31 177 050, while the imports were only
81 092 700, that In these two years there was net
loss Of gold TO the United States OF $76,46e, ,535.
From May, 1883, to July, 1850, exported to France
Germany and England S61 ,435969 in gold bars,
and last summer S15 ESQ in gold bars and some
gold coin. Moreover, q large portion of the ship
ments Of last and Of the summer before were
made at a time when sterling exchange was quoted
at "a 81 1-2 to "a e8. Indeed, the highest point
reached by exchange during the entire period was
S4 So But at that time 1t will be remembered, gold
bars Of full weight and approved Deness were given
in New-York in exchange for gold certificates or
legaltender notes. The recent shipments have all
been made with exchange steadily at "a 80; indeed,
at some dates as high rs S4 90.
"At the ruling rate OF exchange it is unnecessary
to look further for of gold shipments than the
payment of the balance of trade including freight and
interest, and the str1ed financial situation in Europe
The gold shipped abroad since the exchange OF gold
bars refused has been exported at net loss to
the shipper of from onetenth to one-eighth Of per
cent, that the American merchant has been the
gamer to that extent. As pointed out in my report
for 1885, is not profitable business transaction to
ship gold to London, rather than to buy exchange
when the price Of sterling exchange is below 81 30
because in addition to the cost of transportation and
Insurance. the Bank Of England pays for gold only
IT shiings pence ounce British standard, while
il sells gold at the rate Of II shilngs 10 IL pence
equivalent to coinage charge of 1-2 pence per
ounce. Its usual method Of attracting gold is by
raising the rate of discount which 1t has done twice
recently The Bank Of France and the Bank OF Ger
many on the other hand, when they wish to attract
gold frequently credit their correspondents with the
value Of the gold shipped from NewYork at the date
Of shipment thus lessening the cost Of the movement
by the interest the amount during the whole period
Of transit.
"The stock of our own gold coin in the United
States on the first Of this month was, approximately
1880 OoO, 900, while the stock Of gold bars in the
mlnts and assay Offices belonging 10 the Government
was about 900 O00-a total stock Of $500 900 00O
The impression that the statement of the stock Of gold
In the country is mere estimate or guess is in
correct II is the total Of Official abuatons starting
with known quantity Of gold in the Treasury and in
National banks in 1873, to which has been added the
net coinage OF mints annually and the net import
Tor export) OF our own gold coin, with annual
deduction for the amount used in the industrial arts
The product OF gold from the mines Of the United
States for the last sixteen years has aggregated the
enormous sum of S572 800 O00 nearly all Of which has
gone directly to our mints In addition to this, the
net import of gold into the United States fr the
sixteen fiscal years. 1s751S00that is, the excess Of
the imports Of gold the exports-has aggregated
500 900; and yet, for the first two years Of this
period1975 and 1910as previously stated, there was
a net loss Of S70460OOO
Notwithstanding the heavy shipments OF gold last
Sne United states on the ist Of January Of this
year, was Sl6;OOO,OOo more than it was one year
January l. 1889; that not losing gold very
RAPIDLY The United states Is the natural reservoir
for gold; first, because have the largest available
stock; secondly, because of the facility with which
gold can be obtained at our seaboard without involving
serious financial disturbances, which would happen
elsewhere; thirdly because our gold coin is in first
class condition. owing to the fact that 1t does not
circulate actively. AS is well known the English
stock of coin estimated by the mint authorities to be
worth about ssO,OooOoo in soverdgns and $500,
900 in hasovereigns Is In very bad condition. the
Of about "a 100000. Moreover i is the practice in
the banks OF England, to 'culP their godthat is, to
pick out the lighest weight pieces for shpmenwhile
the Bank OF France and the Bank OF Germany charge
premium for any considerable quantity of gold
For these reasons, it Is evident that whenever
there is a pressing demand for gold the part OF
European countries they will naturally turn TO this
country for their supply But our mines are producing
gold at the rate Of $33,OOO,0OO year. faster than
Europe can possibly demand IT, and our summer and
fall exports Of cereals are reasonably sure TO bring hack
notwithstanding the gold exports in the spring we I'm
ported about 81 100000 in foreign gold and brought
back nearly 49, 900 Of our own gold coin, nearly
all in the fall and winter months; There is every
reason to believe that this year should be exceptionally
favorable In this respect"