The Superior times. [volume] (Superior, Wis.) 1870-1912, 1896-10-24
Movement of Gold.


letter addressed to Hon. Charles W.
Dabney, Jr., Assistant Secretary of the
Department Of Agriculture, states why
gold goes out of the country and comes
back and shows that it moves about in
strict obedience to the laws Of trade.
The term raids by bankers at New
York" says Mr.. Curtis, upon the
treasury is one frequently used by
writers and speakers who have no ac-
Curate knowledge Of the method by
which notes are presented for redcmp-
ton at the subtreasury in New York,
or the character or number of persons
making such presentation.
The term banker seems to be as
sumed III most cases to cover class of
men who are apparently engaged in
Withdrawing gold from the govern
ment's reserve and putting it away in
their private vaults for their own sell
fish purposes, and to accomplish Ger
tain alleged improper objects. The
facts in the case are so different from
these fancitul statements, that it seems
worth while to call attention to them.
BY operation of certain natural COM
mereial laws, without the interference
of legislation, New York has come to
be the settling place of almost all con-
tracts for the sale Of orr products
abroad, and in that market the bills of
exchange which represent products eN-
ported are offered for sale. At the
same time people desiring TO remit
money abroad to pay Obligations or to
buy merchandise, are in the same mar
ket, and in order to pay their obliga
tions purchase these bills of exchange
TO remit to their creditors abroad.
Large amounts of coffee, silk, rice,
tea, sugar, and other foreign products
consumed here have to be purchased
with foreign credits and paid for in
New York with foreign exchange. The
natural result is, that, when we are
selling more goods abroad and there
are more bills of exchange in the mar
ket than there is demand for, which is
the case at present, the price of eX
cili'hge laliS. On the othef mana, Wheh
we are not selling as much abroad, and
are buying more or are paying our debts
20 greater extent abroad, the price OF
exchange rises.
The people engaged in the banking
business in New York may he divided
into three classes. First fine officers
Of the regular banks of deposit or issue,
including the national banks: second
the dealers III SecuritIe7' some Of whom
maze lofcl3h connections through whom
tiey market q large amount OF Sec'lF-
I'le' ana upon whom 'hey ara" Il cor
responding amount o. eAchahSe III pay
'leht Ior securities SOFA ABROAD ana |"
"hom theE remit exchange or goId IN
payment LOT securities soId mere thIrd'
AGENCIES or branches OF iorei@n houses,
ties. lint whose ,oai,, Lueinasc i hnrin,,
and saIIin,,a,..I,apao.o, 49,, L,,,ro,o f,r +i,l,
mr. ,tit vbir, c,r ~. mode :, ma o,,or,
tion i+.olr Tho fret ,I.,ss orc. o..,,o'.;.lI,.
interested in tho pnncr,I ,roc,arit,, Of
the country and in I,errinrun the v,Ira
of securities beeansn il There i = fall -.
securities hold Inv tbnn a. coI,,+or,I
tbax. o,n cn,,,I,oII.I T., c,IIi, +I,,;r ,,,,4-
st,n,Iinr loans which roJ,.o, +I,oi,.
lines o credit. dimiuishes their profits
restricts mercantile and industrial en-
terprises. and i'm therud creates r3iIures
in business and General financial and
commercial distress
nc '''o.'" ''"79 ''i' '''ltCLf INTEREST
- N0'i ''''- "P '.'G '','i' % 9''' III '''G9
~ '!''o COUNTY men my iI"Ne l"' -''E
9o'u "oi o"u' anu tLelI interests are 10
"' ono S"'" export" an" lhe puNllc APP
pItlleils'o1l arising rom It"uc'ioh Oh
'iie Eo'" IeSell & Inc I'i'I" cI''' puy
u sen eAciI'i'se whenever 1" oPIof-
'"''''f 'ol - oli' oiioiS
lie then states that gold exporters
are few in number, the leading mem
bers Of which may be numbered upon
the fingers Of one hand, and, in fact,
three or four DO all the Withdrawing of
gold for export purposes. Each ship
ment sent usually represents in the az
grcgate a large number of single tran
sactions. One concern may sell a mil
lion dollars of exchange III one dav,
but it may be represented by 10 to 80
different bills running from el0), and
they nav these bills abroad bV SHINING