The morning call., 1891-03-21
GOLD-BAR SHIPMENTS,
Director LeeGh Explains The Policy Of The
Government.

New YORK. March 20.-Direct0r of the
Mint Edward o. Leech. who is here on bust
ness, said in an interview in regard to the
gold bar subject: Il did not come with
any definite purpose to ask the views of
bankers ON the subject at all, but, being
here. incidentally met bankers and busi-
ness men with whom l am personally ac-
quainted. 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 business men generally"
with whom did you converse about it ?"
he was asked.
With all the leading bank presidents.
The views of leading merchants and bankers
in regard to the policy of the Administra-
ton in declining to furnish shippers of gold
with fine gold bars for shipment abroad |
ascertained incidentally, and l have found
that the sentiment universally is 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 iavorte
project of mine for some time, indeed ever
since | have been Director of the Mint. |
found on the statute books law enacted in
1862 which authorized the Superintendents
of Mints to give gold bars in exchange for
gold coin OF equal value. The late Secre-
tary of the Treasury Window and myself
were disposed TO believe that the law was in
tended to give the department discretionary
powers, but upon submitting the matter to
the Attorney General he held that the stat
ute was mandatory and that we could not
decline to exchange gold bars for gold coin,
nor could we make any charge for such ex-
change. The resurt was the Treasury De-
partment was utterly helpless in the matter
of gold shipments. Upon the recommenda-
tiou of the late Secretary and myself Con-
nA thn latNJ itc la htr
making the exchange discretionary with the
Secretary, and allowing the imposition of
charge equal to the cost of man
ufacturing the bars Tuesday last l
was notified by the Superintendent
of the Assay ONCE in New York
that 81, 100000 was wanted in gold bars for
shipment Exchange on that day was only
$4 SSA, showing that the movement was not
a genuine movement; that is, that it was
more profitable to buy exchange on London
than TO bodily ship gold at that rate of ex-
change. 1t was what is known as special
shipment. 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 Department declined
to furnish gold bars in exchange for gold
coin for shipment. The views OF the de-
partment are simply these: That 1t Is un-
desirable ana against public policy for the
Government to furnish gold in its most con-
yenien; form at seabOard ports to shippers
of gold, and we proposed to exercise the
same discrimination that has been exer-
cised in 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 of 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 permits US to exercise this discre-
tiOn.'
A member of a prominent, house shipping
gold this week says: 1.-The exchange
market is very dull, no due bills offering.
1t is the scarcity of bills, not the demand.
which makes gold shipments necessary
now. We have looked all over the United
States for bills, but cannot find any.
Under such circumstances gold must 60 out
at any cost. The situation abroad does not
necessarily mean the shipment of much
gold, but it means a prolonged period of
liquidation which will be reflected here.
The Murrieta trouble commenced last
September This was the first one. They
are not through yet and the company which
has been formed is simply to liquidate its
affairs, just as in the case OF the Barinss."
Van Hoffman & Co. have ordered $780,
coo in gold bars at the assay Office. No
orders for gold coin were received at the
ub-Treasury but rumorS were current that
Hedelbach, Ickleheimer q Co. will take ST.
100000, and that S4,Co0,000 will 90 out to-
morrow.
Lazard Freres have applied at the assay
Office for 100000 in gold bars for export
The Superintendent sent the application to
Washington. Whether the bars can be OBJ
tanned is question. The Treasury is on
record as having refused.
Heidelbach, Ickleheimer & Co. have taken
S525, COO in gold coin at the sub Treasury for
shipment to Berlin. This makes IA total
taken and requested of S1,37500O
Superintendent 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 S750,000 in
coin at the sub Treasury, which will be
shipped tomorrow, making the total ship
ments so far as known 81 1,275.000
WASHINGTON, March 20.-Acting Seere-
tary Nettlrton to-day rejected offers aggre-
eating SS50,000 for exchange for export of
gold coin for gold bars. He said his action
was In accordance with the policy recently
decided upon. at is contrary to the best
interests of the Government TO relinquish at
tho present time for export any consider
able 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
a premium by reason of the present policy
against the expectation of the Governments
limited supply of gold bars.