New-York tribune., 1895-02-16
A PREMIUM ON GOLD.
RESULT OF THE DEMAND FOR IT BY THE
BOND SYNDICATE.
HoARpERs Or THE PRECIOUS METAL REArING

SMALL HARvEST-A LARGE AMOUNT
SECURED FROM CANADA
The demand for gold in the last few days by
members OF the Belmont-M Morgan bond syndicate
has caused a small premium on the precious
metal and one or two banks and bullion dealers
have made negotiations with members Of the
syndicate al p Of per cent premium By the
terms Of the bond contract gold can be taken
from the Sub-Treasnry for the purchase OF the
bonds. and SO outsiders are making the most OF
the situation BY charging premium II seems,
however If reports be true. that gold for the
bonds may come in an indirect way from the
Sub Treasury and that Russell Sage has taken
1t upon himself to supply members or the sshu-
cate. through third party. with gold Some
time ago Mr. Sage withdrew $1,0OOoOo in gold
from the Sub-Treasury and sold it to broker al
premium. Yesterday he drew out S5oO.oVo from
the Sub-Treasury and it is believed that ne ana IL
in order TO come in for some OF the proh's ol 'he
bond negotiations. Mr. Sage was noT asked 10 De
a member of the syndicate but it is known that
he wanted a modest supply OF the Government
paper and that for some reason or another ne
was not allowed to subscribe for any OF the issue
Another story current about Mr.. Sage yester-
dav was that all the financial talk of the last
few months had convinced him that gold was
better than greenbacks, and 50 he was convert
ing his available cash into he yellow metal
From the men who are best informed concern
ing the situation in Wall Street. the information
comes that one Of the Canadian banks in this
city has sold 81 100000 gold at a premium of from
a. to y of per cent. and that the gold was sold
70 a broker acting for member Of the syndicate.
Gold has recently been offered to some of the
banks by brokers a small premium. and this
indicates that there has been considerable hoard
,too hove loGx rod for
just such a situation as the present one
The members of the syndicate are getting gold
wherever they can. and a large amount has
been secured in Canada The gold which comes
from there is delivered free in this city. but
premium ranging from rs to p of per cent is
charged The cost of bringing gold from CANADA
is 1-1O Of per cent. that the actual premium
paid for the gold brought here is less than the
premium quoted. The syndicate has In order
TO prevent any stringency in the money market
and any undue trouble with the gold reserves
Of the banks account of the floating OF the
loan. named the following banks as Government
repositories for the gold under the bond deal:
The National Cit; the National Bank Of Com
merce and the First National. 1t is expected that
the Chase National Bank will also be named
A change has been made in the original regui
lation governing the receipt OF golu CON ,pa ps
weight in payment fol the new bonds by the
terms of the contract ii is specihcal!y proVldeu
that United States gold coin snail be received as
Of full standard weight. provided that II be iega
tender within the legal limit. That Is. all coin
weighing above $3.50 pennyweights per Dag OF
$1,000 is rated as coin OF fuli stanuaid Wesil in
The standard weight is 5.375 Iennyweisnts per
bag of S., 600 This has simplified matters al tne
Sub-Treasury and Assay Office. as II is now onIy
necessary to see that the gold offered Is aDone uie
lowest limit of legal tolerance. When TINS is once
established. the gold Is accepted as fuil s'ahuaIu
weight. The amount of gold received at the
Sub-Treasury yesterday account Of the new
issu was s
date S4 1914. At the Assay Office there was re-
ceived 81 100000, making total OF sevooVoV' anu
n total for the two places Of S1O.l95.14l. Cold 10
the amount OF S665.OOO was Withdrawn from the
Sub-Treasury yesterday including that with
drawn by Russell Sage. Deposits OF gOid com
for the bonds are received at the SuD-Ireasur!
and those of bullion at the Assay once
The banking community is weary OF discussing
the actions of Congress and little comment was
made Yesterday on the failure Of the House to
mass the Wilson gold bond bill Frederick d.
Tappen voiced the sentiment OF New YORK IMAM
ciers Yesterday when he spoke as foiloWs'
early yesterday that the bill would probably be
defeated BY large maCry major Sere @ ae II 't had aready
been largely discounted. The National credit abroad
bankers had likewise discounted the defeat Of the
less, The National revenues Will. | think soon IN
ad that W pG thu thus end to n
the drain the gold reserve SO far as the pres
dlsgused with it that they Will be glad when the
time comes for 1t TO adjourn. and the opportunity
Is removed for It to work any more mischief Then
the will be able TO carry on It's business
without interruption until next winter. We 40 not
want extra or special session or the new Con-
gress either.
J.. f. CHITTENDEN SCORES CARLISLE.
THE EX- REGISTER POINTS OFT SOME OF THE
DAMAGING FEATU RES OF THE SECRETARY's
CONTRACT WITH THE BANKERS
To the Editor OF The Tribune.
In IN he Of &
which Secretary Carlisle has made with the foreign
bankers, wish to say
l. ! am certain that since the retreat Of our Army
from the Peninsula. the second Bull Run de-
feat. no event series of events has occurred so
damaging TO National credi; this. In the
darkest hours o; the Secretary Chase never
pa:d such an enormous price, the fourth of II.
liz liz amin