The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1891-03-21
GOLD FOR EXPORT.
Director of the Mint Leech De.
MES the Policy
or the Administration in the Matter-There
no Scarcity of M0ney-lt is
Sound Finance

New YORK, March 20.-Drector of the
Mint Edward 0. Leech, who is here on
business, said in an interview in regard to
the gold bar subject: 81 did not come with
the definite purpose to ask the views of
bankers on the subject at all,n he said,
'but being here l incidentally met bankers
and business men, with whom l am person
ally acquainted. / am satisfied the gold
bar policy is good one and that it will be
commended by the people of the country
and by bankers and business men gener-
ally"
with whom did you converse and about
what!" he was asked
with all the leading bank presidents,
The views of leading merchants and bank
ers in regard to the policy of the admins
tration in declining to furnish shippers of
gold with fine gold bars for shipment
abroad / ascertained incidentally and have
found that the sentiment universally is that
the government acted wisely in this de-
cision.'
In reply to other inquiries, Leech said:
This proposition to decline 20 exchange
gold bars for gold coin has been favorite
project OF mine for some time; indeed, ever
since have been director of the mint. |
found on the statute books law enacted in
1882, which authorized the superintendents
of mints TO give gold bars in exchange for
gold coin of equal valus
1.-The late secretary of the treasury, Mr.
Window, and myself were disposed to hold
that the law intended to give the depart
ment discretion but upon submitting the
matter to'the attorney general he held the
statute 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 the treasury de-
partment was utterly helpless in the mat
ter of gold shipments. Upon the recon-
mendation of the late secretary and nv
self, Congress amended the law at it's last
session by making the exchange discre-
tionary with the secretary and allowing
the imposition OF charge equal to the cost
of manufacturing the bars. Tuesday last
was notified by the superintendent of the
assay Office in New York that 500, 600
was wanted in gold bars for shipment:
Exchange at that date was only ASST
showing that the movement was not gen
uine exchange movement that is, that it
was more profitable to buy exchange on
London than to bodily ship gold at that rate
of exchange. 1t was what is known as
special shipment, and upon my recommen-
datlon, and upon the concurrence of the adj
ministratiop, the secretary decided to exer-
else the other alternative allowed him bv
The change in the law, and the treasury de-
partment declined to furnish the 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 formal aseaboard
port to shippers of gold, and we propose to
exercise 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,sUnited
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 law is now for the first
time operative which permits us to exercise
this discretion