The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1892-08-07
THE GOLD TRAIN.

Now that the treasure train bearing
twenty millions in actual gold coin is well
well on its way beyond the Sierras the
reasons which induced the Government Off
eiais to beg the press to keep the transfer
quiet no longer apply. There is no danger
that the money viii now be intercepted on
its way TO Uncle Sans vaults. There
really never was much danger. A box of
coin weighing 80 pounds is not easily
picked up and carried off. In the early
days, before the railroad got into Lead
vile, the teamsters who hauled freight to
Denver were in the habit OF throwing the
bars of base bullion TO the roadside when
their wagons broke down. They were
worth money. as each bar contained 200 or
500 ounces of silver; but they were far too
heavy for the most enterprising highway
robber TO tackle.
1t is singular that ii should have been
left to Mr.. Foster to transfer this coin from
San Francisco TO New York For quarter
of a century it has lain here, where it was
not needed, and was constant temptation
! TO burglars, while periodical commissions of
the Eastern money markets were caused by
| the scarcity of gold coin. About once a
! year the state of the exchanges causes an
outward flow of gold from New York and
/
ground for uneasineSs, as the gold always
comes back when the exchanges turn, yet
! still the decline in the bullion reserve of the
| banks frightens timid people, and the alarm
sometimes produces real embarrassment
| This would have been avoided if the coin
reserve at San Francisco had been avail
| able TO supply the wants Of shippers. That
/ will now be the case. In case the New
| York banks want coin for shipment, the
| Sub-Treasurer will now have twenty mill
lions more at their DISPOSAL than he has had.
| The physical transfer of train full of
| gold across the continent is an unusual in
| cident in mercantile country. Such oper-
! ations are usually conducted through the
| Intervention of bills of exchange. When
| France paid Germany Il thousand millions
! in 1S71-75 no trains loaded with coin crossed
| the Rhine. The transfer was effected
| through bills on London and Amsterdam.
| Once or twice the exchanges showed profit
on bullion shipments from these points and
! from Paris to Berlin; and the actual coin
| went forward. but the exchange quickly
rectfied itself and the transfer continued to
be made through bank credits. Our sub
treasury system interposes an obstacle t.
such forms OF remittance in this country.
a few years ago when gold had aecumu-
/
! the Government sent a ship-of-war to bear
! it to New York. And nov the same physi-
cal transfer has been resorted TO in order to
relieve our sub-treasury here to fortify the
suh-treasury there.
The Treasury Department might of
| course, have drawn its bills on the Sub
Treasurer here and deposited them in de-
! pOsitory banks in the East. These deposit
| tories would have forwarded the bills TO
their correspondents here, who would have
drawn the coin for them. But as there is
! not any such amount Of New York exchange
as S2o, 600 af1oat in our market, or any
! thing like that amount, the parties who
drew the coin out of the sub-treasury here
would have had to ship il forthwith to New
| York to enable the depository banks there
| TO meet drafts hich the Treasury might
draw against the deposit of its bills. Thus,
in this case. it would have been the banks
here or the San Francisco agencies of the
New York banks who would have shipped
the coin. ana not the Government. But the
| banks would not do that business without
being paid for II. and Mr.. Foster probably
| found, as his predecessor did in the New
| Orleans case, that II was cheaper for the
| Government to hire a train of cars and move
its coin in bulk across the continent than 10
place it where it was wanted through the
agency Of The banks.
The progress of high finance, however, is
divrsting coin Of its exclusive value as an
instrument of exchange. In the East geld
notes have represented coin in the actual
transactions of commerce. gold note for
$1,000 is as good for all intents and purposes
as fifty double eagles.