New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1891-03-18
NO GOLD BARS FOR EXPORT.
UNEXPECTED ACTION OF THE TREASURY.
SHIPPERS HEREAFTER MUST TAKE CoIN-FoL-
LOWING FOREIGN POLICIES FOR SELF
PROTECTION

PROTECTION.
News came to Wall Street yesterday which was start
ling to extent nasmuch it interfered with the
current OF speculation that moving upward but
which was not known with pOsveness early enough
for bankers TO express their views at length The re
cent restoration -. confidence in the future
was retarded in the stock market soon after
the opening by the announcement that applica-
| tons had been made by Hcidelbach, lckelhei-
mcr &; co. and Llzad rrercs for ~ 900 900 of gold
for export. The applications were for gold bars, a.
has been the usual custom About o'clock Dow.
Jones & Co.'S news agency issued slip stating that
the Treasury Department had refused the applications
The stock market rallied sharply the theory that
this action shut Off the bears from securing the As
sistance Of speculative exports Of gold In their efforts
to deprcss values. and the late reaction in prices was
explained "a simply the result Of suggestions that an
uralvorable effect might be produced in Europe by tho
Treasury action. Tie news agency'S report sent
many nqurers to Superintendent Mason. Of the Assay
Office but il was not until after 4 o'clock that Mr..
Mason could announce the receipt Of orders from the
Assistant Secretary OF the Treasury not 10 deliver the
gold bars applied for.
The custom OF the Assay Office under Treasury in.
srctions has been to deliver gold bars for export.
The shipment Of these has been advantageous 10 cH'
portcs and dealers by of the saving allowed on
transactions in foreign exchange calling for the move
ment of the yellow metal between the actual value OF
the solid gold in bars and the loss in bullion coins.
agitation at times to the wisdom Of the Treasury
allowing the supply Of bars at the request OF ship
pers. The last Congress passed law, attached u
one Of the appropriation bills authorizing the Sece-
ary Of the Treasury To make charge to cover the
cost OF turning coin into bars. This charge was hxeh
at cents per 800. % Of per cent. Discretion
was given TO the Secretary TO refuse to supply god
| bars altogether 20 shippers.
The importance Of the decision Of the Washington
authorities is appreciated by shippers. The difference
| between the profit and loss a commercial trans
action in sterling exchange when coin has to be sen'
abroad is estimated equivalent to 14G12 cent on
the pound sterling in favor Of the use Of bars. Mr.
Zimmerman OF Zimmerman & Forshay. the we'll
known bullion dealers said yesterday that the amer.
cnce might up to ! cent on the pound sterling IL
the coin which shippers might be forced to use now iol
| export gathered msceancOusly. 1t was deciifc"
good authority that when the Assay once was
closed last July pending accounting. a shipment
made by Heidlcbach. Ickelhcimer Il Co., VINO were
| compelled 10 use gold coin from the SuDlre''ufS'
| which resulted in a net loss OF IL per cent
In the last two years the banks Of Europe nave
| jealopsly guarded their supply Of gold. They nave
| mpedcd the calls made by Commercial conditions p'
| putting premium upon their gold bars, ana t''
Bank Of England in last November refused 10 furnish
gold bars. compelling the bankers of New York WIi'
| brought the gold to take American or foreign
coin and bear the loss on the importation. The United
! states Treasury Joins the European nations III
their proper methods Of projecting the gold suuply.
The suddcnnc>s Of the action was the principal
cause for comment in Wall street Yesterday. The foreign
exchange market when the shipments to Hrazil two
years ago took away large Of American gold did
! not warrant the movement. The tran SactioNs vert
called special" then and that has been the term
that has been applied 10 all Others which have since
! occurred. The rates for foreign exchange are now
said fully JUSTIFY outward flow Of gold from the
United states ON the passage - the law allowing tho
Urea Sury IN chargc what il pleased on bars no Oh
lection was made by foreign shippers The complaint
made by them is that the refusal Of gold bar,
| il equivalent to raising the charge to figure that
interferes with the normal working Of the exchange
| market. II is understood that Lazard FrcrcS. wl1
asked for half % the cpd bars applied for Yesterday
will make their shipment in gold coins. II is prob
able that the other 100000 will De sent by Icide
| bach. Ichclheiucr d ca.
| The amount Of gold at the Assay once March
was. in round numbers. S1G.0oo.OO0. Of which only
conid recommend for Shipment tie total amount II
gold held at the CORE, pondins date In i-"o wa
81 "oo"oo In - the D Da5" held I wa -,
oooooo; The dccra.e in ihc supply may Ibs the
cral Wall street bankers we've expressed well o. Oh"
remarks Of Henry ". Cannon prt.dn mt 81 the Cla-"
National Bank ana Intimate friend Or s"oiriiif
Foster: &c tlnk that the action Of 40" Treasury D."
pamcn !, si We have been loo neril IN c@r
I'm checking by artificial mean, the export Of gold
think the Government is not compelled 70 sell gold
special terms shippers. The United states now
exchange, gold on tie with other coun
tries
Washington, March l7.-Acting secretary Ncitle'0n
today dcniei an Application for Hhc exchange r, 81
for gold coin for expectation, for 'he reason that II
Is not believed TO be- tlc duty % the Government 10
furnish gold IN it. most convenient form for ship
ucnt from the United states at the present rate II
| exchange. viz cents per 800. This action Wa
taken with the full approval OF the President under
| authority Of recent Act Of Congress giving IN"
secretary Of the Treasury Discretionary power To-
refuse such exchanges whenever deemed necessary
for the best Interests Of tine Government the only
Xchanec Of gold bars since the passage Of this Law
was one Of &OOOOOO made several days ago charge
IT cents per FOO hc'ug imposed. l,it This rate
does not Seem 10 have deferred the shipment Of
Government gold the Treasury Department has de
cidcd discontinue the exchange ALTOGETHER for III"
present. This policy will temporarily restrict all
shipments Of TINS character Ia gold bar, and gold coin
held by private firms and Individuals.