The morning call., 1893-11-03
CAUSES NO WORRY
How Bankers Regard Gold
Shipments.
COIN NOT IN CIRCULATION.
In No Way Does the Drainage From
Here by the Government Affect
Them, They Say.

The fact that within the past fourteen
months $50. 100000 worth of gold has been
shipped from the United States sub
treasury and the United States Mint in
this city to the East does not seem to
worry the bankers much. OF this amount
S20,OO0.00O was shipped from the SUBJ
treasury a year ago last August, and the
balance during the past three months in
two shipments of S4.O00.O00 and $4,000, 600
respectively from the Mint, and the one of
$4,000 900 from the sub-treasury mentioned
exclusively in THE CALL of the 18th inst.
Assistant Treasurer jackson is of the
opinion that the draining of gold from the
Pacific Coast would affect it unfavorably
for two reasons; first. because the accu-
muIated gold represented the results of our
own trade and business; second, because
IN case OF great urgency IL might not be
possible to get the gold back from the
East Mr.. jackson quite naturally regards
the sub-treasury as great Government
reservoir to enable the banks to serve the
commercial and industrial world.
What the bankers have to say from their
standpoint, however. is subjOined. To
them tie gold is simply so much duties
and revenue taxes received and piled up,
and so long as IL is not in active clrcula-
tion they are rather Indifferent as to what
becomes OF it. At any rate, they say the
shipping of it East does not affect the Dusi-
ness of this city in the least
There is still plenty of Government gold
in San Franclsco-S100, 100000 altogether
of which about 46.OOO0OO Is in the sub
treasury and S54,000,000 in the Mint-so
that the business world will feel an interest
in how representatives Of five great local
banking concerns view both the accumu-
lation and the shipment of the yellow
metal. Mr.. JacksOn'S predecessor, Mr.
Spauldiug, had SS0.000,000 in the SUBJ
treasury, and when Mr.. jackson assumed
charge there was SIC. 000,0 600; and the diff
ference between the latter sum and the
present amount on hand is $50, 900, co.,
which has gone, including Government
disbursements, from the sub-treasury.
Cashier Thomas Brown of the Bank of
California says: $50 far as my own per-
sonal opinion goes [ think it makes verv
little difference whether the gold is in the
sub-treasuTy here or in New \ ork so long
as il is not in active circulation. AS things
now stand the shipment of gold does not
affect the bankers. The Government will
not issue gold certificates unless there is a
surplus III the national treasury over the
500, 600. 900 reserve. If those certificates
were issued and we exchanged our gold
for Government certificates then some
slight Inconvenience might result from
heavy shipments. but only very slight"
President Albert Miller of the San Fran
cisco Savings Union was of a similar
opinion. ut makes no difference" said
he, ito the bankers whatever, so long as
the gold is locked up in the vaults, whether
it is here or elsewhere. Money is no good
to the banks unless it is put into circula-
tion. The certificates would not help
savings banks; it is the commercial banks
that use them principally. The Govern
ment gold here represents neither a basis
nor a security, so far as banks are con-
cerned."
Manager Ignatz Steinhart of the Anglo
California bank, gave the following as his
views: the shipment of Government