Los Angeles herald., 1891-03-21

GOLD FOR EXPORT.
The Treasury's New Policy in
Operation.
Offers to Exchange Coin for Bars
Rejected.
A Large Amount of Coin for Foreign
Shipment.
Treasury OfHcials' Opinions Of the New
Lava Big Bank Failure
in Philadelphia.
Associated Press DispatchA.

WASHINGTON, March 20.--Acting Sec
retary Nettleton today rejected offers
aggregating $3.50, 900 for exchange for
export of gold coin for gold bars. He
said his action was in accordance with
the policy recently decided upon; that
it is contrary to the best interests OF the
governmentt to relinquish at the present
time for export any considerable part OF
the most convenient form of our gold
supply. He did not regard it as at all
probable that gold would be forced to
premium by reason of the present policy
against the expectation by the govern
ment of the limited supply of gold bars.
New York, March 20.-Superinten-
dent Mason received notice from the
treasury officials this afternoon that two
requests for gold bars for export had
been refused. When the bankers re-
ceived this news, they ordered $750,0O0
in coin at the sub-treasury, which will
be shipped tomorrow, making the total
shipment so far as known $1,275,00
The director of the mint, Edward
o. Leech, who is here on business, said
in an interview in regard to the gold
bar subject: II did not come with any
definite purpose to ask the views OF
bankers on the subject at all, but being
here, l incidentally met bankers and
business men with whom l am person
ally acquainted, 1 am satisfied the gold
bar policy is good one, and that it will
be commended by the people of the
country and by the bankers and busi
moo ,,,ov, voporo 11u
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
administration, in declining to furnish
shippers of gold with fine gold bars for
shipment abroad. l ascertained Incl
dentally, and 1 have found that the
sentiment is universal that the govern
ment 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 favorite policy of mine for some
time-indeed ever since have been di-
rector of the mint. / found on the sta
tute books law enacted in 1882 which
authorized the superintendents of the
mints to give gold bars in exchange for
gold coin of equal value. The late Sec
retary of the treasury, Mr.. Window,
and myself were disposed that the law
intended to give the department discre-
ton, 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 make any
charge for such exchange. The result
was that the treasury department was
utterly helpless in the matter of gold
shipments. Upon recommendation
of the late secretary and
myself congress amended the
law at its last session, by making
the exchange discretionary with the
secretary and allowing the imposition of
a charge equal to the cost of manufac-
turing the bars. On Tuesday last was
notified by the superintendent of the
assay office in New York that 81 100000
was wanted in gold bars for shipment.
Exchange on that day was only $4.SS14,
showing that the movement was not a
genuine exchange movement; that is,
that it was more profitable to buy ex-
change on London than to bodily ship
gold at that rate of exchange. 1t was
what is known as special shipment,
and upon my recommendation and with
the concurrence of the administration
the secretary decided to exercise the
other alternative allowed by the change
in the law, and the treasury depart
ment declined to 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, and we propose to exer-
else the same discrimination that has
been exercised by European countries in
regard to the export of gold. That is,
we do not propose to facilitate it. This
policy is exercised now, not because OF
any change in the monetary situation in
the United States; not because there is
any deficiency in the 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
nerr,its r1s to exerciaa this dissertation -