The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-08-21
GOLD GOING FROM
THE SUB-TREASURY,
Four Millions Withdrawn
During the Present
Month.
TALKS WITH BANKERS.
Most of the Gold Held in the
Vaults of Banks in
This City.
STOCK OF MONEY INCREASED.
Financial Situation in This City Com.
monty Regarded to Be
Very Strong.
STOCK OF MONEY INCREASED.

Cashier Burns at the United States sub
treasury, in this City, made the state
ment yesterday to reporter of The CALL
that DUNG the present month of August
there has been withdrawn $4.000,0 600 in
gold from the sub-treasury in exchange
for greenbacks and other currency.
Mr.. Burns made no attempt to explain
this striking fact. The withdrawal of this
large amount has left about S., SOC, 900 in
gold in the sub-treasury. This large with
drawal is entirely unprecedented, but, ac-
cording to bankers who were interviewed
last evening, very small proportion of
the gold has found its way out of the State.
One of the best known bankers in the City
estimated that not over $500 900 of this
gold has gone East. The remainder is in
the vaults of California banking institu-
tons.
Inquiry was made in many quarters last
evening to ascertain the reasons for the
withdrawal of the gold from the SUBJ
treasury. The answers which were re-
ceived from conservative and well-in-
formed men all tended 10 show one fact of
significance, which is that the local money
situation has been very greatly strength
ened during the period of the transferring
of the gold from the sub-treasury to the
bank vaults, because at least ST., 100000 has
been added to the money in the City and
probably very much greater sum than
that.
The 100000 represents the sale of
Government bonds in New York by Cali
fornia parties, and the tranSference of
the proceeds to this City. The money re-
ceived for the bonds was presented at the
sub-treasury and was there converted
into gold, which has gone into bank
vaults.
A banker who knew about the transac-
tons involving the sale OF Government
bonds by California parties in New York
placed the estimate of the total transac-
lions at the figure of $1,000.000. as quoted
above, with the understanding that this
was only an estimate.
This gentleman also instanced another
fact which may account for large gold
Withdrawals or rather transfers to local
bank vaults, and this fact also shows that
the local situation has been made even
better than it WAS before. PARTIES having
deposits in Eastern banks may have called
for their Eastern deposits. They have re-
ceived their money from the out in cur
rency and have turned it into gold. OF
course you can see that the bringing of
currency here in payment for Govern
ment bonds and also the bringing of East
ern deposits here in currency has added
large amounts to the amount of money
actually here. | have very good means of
knowing, and l feel confident that not
over $500, 600 of gold has gone East. l
also feel confident that the exchange be-
tween San Francisco and New York does
not account for the drawing out of gold
from the sub treasury"
The same gentleman also said: 81 am
aware and others are aware that some
weeks ago there was very large importa-
ton Of silver certificates into this State.
The attention of bankers WAS called to the
fact by the unnatural and unusual way in
which they came to banks. They were re-
fused at some banks, but for time they
were taken at the sub-treasury. In fact
gold was paid out right along for them I'M
til the order of the Treasury Department
was issued about ten days ago and that
put stop to that practice. Gold is at
premium, and it was possible to turn in
silver certificates here and get gold out.
and for ST. 900, 600 in gold obtained in this
way profit of $4,000 could be realized
when it was disposed Of
s'There is no money to be made in ex-
change between New York and San Fran
cisco because exchange is at discount.
The financial policy of this Democratic
administration has been very bad. The
sub-treasuries in the East have paid out
gold for National bank notes for one
thing, and thus the Government has bee n
kept on the qui vive to maintain the $780,
600. 600 gold reserve in the treasury which
is held to provide for % per cent of the
MISUNDERSTANDING obligations of the
United States, The administration took
upon itself to redeem these notes from all
over the United States instead OF sending
the holder away to place upon the bank
which issued the notes the redemption OF
it's own circulation.
Actually there has been a great con-
centration of these notes at New York,
which is as much the money center for
the United States as London is the money
center for England. l think it is probable
that the banks in San Francisco are forti-
flying themselves with gold"
E. B. Pond of the San Francisco Saw
ings Union said last evening that he
understood that large amounts of gold
have been withdrawn from the sub-treas-
ury in this City, but he had not the fig
ures. He was not aware and did not think
that the savings banks have Withdrawn
the gold largely.
"There is gold enough in the country
and we would be all right if the agitators
would leave us alone, said Pond.
He had no reason to assign for the re-
moval of gold from the suD-treasury, but
knew, as Others know, that there is a ten
dency on the part of many to hoard gold.
The large demand for gold on the local
sub-treasury practically ended last week.
High-water mark was reached one day
when about 100000 was taken out. No
information can be secured at the sub
treasury concerning The banks or persons
who took the gold. Under the Treasury
Department regulations that information
can be furnished only by the Secretary of
the Treasury or upon his order.
Manager King of Wells, Fargo d Co. s
Bank said Yesterday tbat he had no
knowledge concerning the subject matter.
1t has been the practice OF the San Fran
cisco banks in the past to deposit gold in
the sub treasury and to draw out green
backs for shipment, because OF the less
expense involved in the forwarding of the
paper money.