New-York tribune., 1896-01-04

PROFIT BOTH IN EXPORTING AND M
PORTING.

a REMARKABLE SITUATION As REGARDS TIE
DEALINGS IN TIE YELLOW MErAL-TALK
ABOUT THE PROPOSED BOND ISSUE.
The preparations for the purchase of bonds
from the Government has developed remarkable
dealings in gold The hitherto unheard OF stua
ton is presented of profit in exporting gold,
while at the same time there is profit in I'M
porting it, 1t is figured tina; gold can be eX-
ported without loss when the rate for demand
bills Of exchange is 4.S9. The current rate is
4s9A 10 1897. profit of u to u a cent a
pound is therefore apparent On transactions. or,
t. put il another way. there is profit OF $500 to
1000 on each 81 600 coo IN gold exported. On the
other hand. ii is calculated that with deIns,id eX-
change at 4S9i4. gold can he imported Il tiNre is
a premium of rs per cent (nOt cents on H. Cola
Is held by the specie dealers at premium OF IA
to 1ia per cent. There is accordir gly profit of
$1S7J to Sc $50 on ca ch 81 100000 Of gold imported
HOW EXCHANGE Is KEPT Up.
Exchange is kept u7 by the fact that cotton,
grain and other commercial bills with which TO
settle mat turing obligations abroad are scarce 1t
is cheaper to send the gold to the other side than
TO buy bills and forward them The gold can b.
withdrawn from the Sub-Treasury or Assay Of
fee on presentation of greenbacks. 1t Is pro-
vided in the agreement OF the syndicate organ
tied to purchase the new Government bonds that
gold shall not be taken from the United states
Treasury TO pay for the bonds and the gold out
side Of the Treasury is practically boarded. Inc
thirty-year per cent bonds, such as II Il pro-
posed TO issue. have been selling in the open mar
ket at ll711. Including the commission to the
managers of the syndicate, the members of the
syndicate may have to pay LOG for the new bonds
1t will be that they can pay l12 per cent
premium for gold with which TO purchase the
bonds and there is still a difference or " per
cent IN their favor on the basis of the current
quotation for the bonds. The specie dealers. IN
order to obtain the gold from the other side en-
port silver for the most part and make gold
drafts against their consignments. The eXporta-
tjons Of silver in fact have been heavy for some
time past The exporters OF gold might turn
their gold over to the importers and take the
drafts Of the latter thus avoiding transportation
charges and insurance both coming and going
but the bond syndicate agreement prscludes such
an arrangement Any applicant for bonds VINO
would take gold from the Sub-Treasury and de-
liver it 10 the specie dealers would be shut out of
the syndicate by its managers.
SHIPMENTS TO-DAY.
Ry the Lucania, which sails this morning for
Liverpool. Lazard Freres viii ship S,5oV,Voo IN
gold bars all Of which withdrawn from the
Assay Office. The Vera. which is on its way
10 New-York. is reported to have on board 5000
coo in gold while the Paris which Will sail from
Southampton tomorrow will bring $2OooOoO in
cinding 100000 for Kuhn, Loeb 6 Co The Ger
man houses which are to take part Of the Gov
eminent bonds are Withdrawing American eagles
from the Bank Of England with which to pay for
them They took $4,000 in eagles from the bank
yesterday and the bank thereupon increased It's
selling price for the coins from I6s Sd TO as '2d
The syndicate will accept in payment for bonds
United States gold certificates Issued against
gold held in the Treasury. for they will serve TO
increase the Treasury gold reserve. The certih-
Gates cannot be secured at the Sub-Treasury by
the presentation OF greenbacks; the actual gold
must be proffered for them. The specie dealers
demand the sane premium for gold certificates as
for the coin. The certificates are really better
than the coin. for they are easier 10 handle ana
do not lose in value by abrasion Yesterdays
heavy debit balance OF $i.O6l,546 49, against the
Sub-Treasury at the Clearing House was paid IN
greenbacls.
Robert Bacon. Of ]. p Morgan & Co.. the
managers OF the bond syndicate. did not take
dinner with the President in Washington on
Thursday evening. many newspapers said
1t was f. r Bacon who vas the PresldenIs
guest. as The Tribune Washington dlspatch
correctly stated. Il. X. Bacon Is president OF
the Baltimore and Ohio Southwestern Railroad
with an Office at No. Wall-st.. and he was
wears ago a feow-lawyer with Grover Cleve-
land In Buffalo. President James T. Woodward
Of the Hanover National Bank and President
John A. Stewart OF the United states trust
Company, who were also al the Presidents din-
ner had been invited to ii long before the BOND
matter came up. They were not at their of-
fees yesterday.
No report from the Finance Committee on
the House Bond bill is expected before next
Tuesday, and until its report is handed in. at
least The President will do nothing toward
selling bonds. For this statement there is the
very best authority. He may even wait FOR the
Senate TO dispose Of the Finance COMMITTEES
report When the time comes for the Govern
ment to enter into contract with the bona
syndicate. the President will have his dealings
directly with j. Pierpont Morgan and President
James Stillman. Of the National City Bank
Bankers do not believe the President now has
any thought OF attempting 10 dispose or the
bonds al popular Offering" although he Wa3
somewhat impressed with the idea al one time.
There is likelihood that syndicate VIII be
organized in opposition to the Morgan-Stilman
syndicate. although there has been talk 10 that
effect