The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1893-08-31
GOLD FROM ENGLAND.
Forms Which Attend Its Removal
From the Bank.

Means by Which the Directors Obtain In
formation of the, Worlds Wants and
Regulate the Price-How an Order from
New York is Filled-Different Courses
to Pursue, if Bars, Eagles or sovereigns
Are to be Eought-The Care Taken i'll
Delivery and Packing of the Metal.
London, Aug. &c. The dominant factor
in all Stock Exchange transactions dur
ing the last week has been the movement
of gold in and out of the Bank OF Eng
land and the probability of an advance in
the bank rate on Monday.
The bank reserve had probably been
reduced to 100000 pounds, and the
rumor was current that the Directors
would hold special meeting on that
day to advance the bank rate. No such
meeting was held, however, and the reg
ular weekly return, made on Thursday,
and giving the actual condition of the
bank on Wednesday night, showed the
reserve to be again fully 15,oO0,00o
pounds.
The action of the Directors in advanc-
ing the rate on Thursday to 5 per cent.
was to force the Bank of France to assist
in supplying the gold wanted by America
the demand from that quarter being I'M
satisfied and further shipments being ex-
pected.
The ability of the Directors of the Bank
of England to forecast future bullion
movements is however, limited. MosG
large shipments to London are advised
when put on board, and information
filters through the consignee's steamship
offices or through insurance brokers, LOT
most of the gold shipments are insured
here. But on arrival it may be sold In
open market at price higher than that
fixed by the bank, and if there is a strong
demand for export, such transactions
are frequent, and the price agreed upon
would be between the buying and the
selling price Of the Bank of England for
gold bullion, both importer and exporter
doing better than by dealing with the
bank.
The Directors are usually made ac-
quainted with Continental requirements,
MOST OF them being filled through two
firms, but owing to the number of COM
peting houses and the fact that the bank
has no means of always getting accurate
information from America, the extent
of the demand from New York is always
uncertain, particularly so now that ship
ments are controlled by thespayment OF
a premium by New York.
AS rude gold for shipment is usually
engaged in the forenoon, and if for
America on the day before the steamer
sails, but the shipment might be put
through after O'Clock, or even, it a
small one, after $50, the bank being open
until A.
Let us suppose that the London cor
respondent OF New York house receives
a cablegram to ship 100000 pounds in
gold. A clerk is sent to the bullion
office, at the 10th bury end of the bank,
to ascertain the selling pirce. OF gold bars
which lose less by abrasion during trans
portation than coin.
The bank may refuse to sell it's bars, as
it did last week, but it's selling price
for eagles, as all American coin is called,
whether double or single, or half eagles,
may admit of their being taken more
profitably than sovereigns, at 76s, 10d
per ounce, the banks present selling
price. It pays better to ship eagles than
sovereigns, as the former are available as
currency upon arrival in New York,
while the sovereigns must go to the
Assay Office.
To fill the order to ship 100000 pounds
it would be necessary to buy about 1885,
900 ounces, which would be weighed in the
presence of the purchaser, and handed
over the counter, payment being re-
quired, whether for bars or foreign coin,
in check on the Bank of England.
payable to bearer, or, as it is called
here, an open check, which is cashed by
the bullion office while you wait.
In case the bullion office refuses to sell
bars OF American coin, or fixes the price
too high, sovereigns would be withdrawn
i 4. I.
necessary to go to the issue department
of the bank and present bank notes or a
marked check drawn on the banking
department.. A marked check, which
is seldom requierd in England, cores
ponds to the American certified check.
The paying teller at the issue department
gives ont the gold in bags containing a
thousand full-weight sovereigns, (which
are weighed on delicately-adjusted scales
then placed on a hand cart and delivered
to the shippers in the courtyard of the
bank, the bags being sealed.
Here the banks response bility ceases,
and the coin is left with the shipper,
who now employs powers connected
with the bank to pack the gold for ship
ment. Stout boxes made of inch-thick
deal or pine, in sizes to hold 500 or 1000
sovereigns, the latter being generally
used for American shipment, are ready,
aud the shipper places the bags in the
box the porter mailing on the cover and
the iron straps. The boxes are sealed
with the shippers seal, numbered, and
as a rule the consigner's name is cut on
the box. The porters receive cd for each
bag, and As, Cd, the traditional tip of a
sixpence making round los per box.
The freight room on an outgoing
steamer being engaged, the steamship
company is notified to send to the bank
for the boxes of gold, and their vans
drive into the courtyard of the bank,
where the shipperIgets receipt. The
steamship company is now receiving the
boxes at the bank and delivering them
at the office of the consignee in New York
at an inclusive charge of thirty
seconds of i pei. cent. Insuring from the
bank to the consignee costs about the
same.
The relative return ON shipments of
sovereigns ands American coin from
London depends largely on whether the
banks stock of eagles consists of full
weight or light coins. If the double
eagle turn the scales at SIG grains each
only S484, 2S5 could be bought at the
present rate for 1000 pounds, while the
same sterling sum would buy 1886, ass in
double eagles that had been abraded
but quarter of per cent.
The fact that the bank had a large
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