New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-03-27
A PREMIUM on GOLD BARS.
REASONS FOR THE ACTION OF THE TREAS
Try DEPARTMENT.

CRY lEPARTMENI
Wall Street suddenly awose yesterday 70 the fac,
that a state OF affairs existed which. II not changed
at once. would result in u resumption OF gold ex-
ports An advance In the price charged by the
Bank OF England for American gold bars from rs.
a. to rs III. made Il profitable TO snip TO LONDON
gold bars obtained at the Ne~-lork Assay once
The only reason that bars were not Withdrawn
from the Assay Onice for export was that there
steamship OF regular line SAILING lot
Europe until tomorrow.
with the premium OF i-ic OF per cent charged
by the Government for Assay once bars. a profit
OF about l-lj OF per cent on exports was Nsureu
after the Increase In the Bank of Englands charge
Houses In the foreign exchange business advised
the Treasury Department OF the situation ana an
order was forwarded from Washington to raise the
premium on gold bars from ll6 10 3-l6 OF per cent
which was equivalent to slS5 per scpl This
changed the profit shipments OF gold bars To
loss Of l-i6 OF ! per cent, which would be SZo on
shipment OF 100000.
SINNERS # was known. could procure gold coin
withou, paying a premium but the coin ootainape
would be light" on account OF ABRASION and as
American gold coin is taken abroad by weight and
not by its face value. 1t would not be possible 10
utnze n in an international transaction. based on
the London price for bars. II was clear. however
that ~ the rates FOR sterling exchange continued
to 20 I'D as they had been doing for several days
the end OF the week might see them at point
where even lightweight com couid De shppeu III 'he
regular course at proht
In the for.part OF the day the American Sugar
RernInc Company. otherwise the sugar Trust, was
r.nor,ed IN be paying 4sSi. 'and n dollar for de-
,napd hus Before the close OF business as high
az Sss, was paid for demand bills, which was an
advancc ~ one cent since Monday. AT tSy gold
coin that has been in use can be snlpped with
nroa, ~ ZOO or 80 million. There are not
annugb grain cotton other commercial bills
Offering 10 meet the requirements OF rernltters 70
,he o,hor aide The deficiency can only De suppHeu
t,,Iic md
which they Will create In Europe against the issuers
Iii Rave n be settled with gold.
r. is said that II It comes to the point where de-
nands upon the gold reserve IN the treasury Tor
exnort are threatened the Secretary OF the Treas
NJ viii call upon the banks acting as special de-
a. ras vi" Tor Gold paid for the Government bonds
"cnn,v ssued TO deliver this gold to the Treasury.
The amount OF gold belonging to the Government
u,htch 10 hold I'm these repositories Is sb5OOO. and
nearlv ali OF IL Is held In New-York banks. The
iost ..,atement by the associated banks showed
hclr reserves above legal requirements 10 be Sy.-
90 r., II the Government were To draw Its gold
frnrn m. depositores the surplus reserves OF the
NJ ynrk hanks would be practically wiped out.
the ha nLs would their loans and the rates
fcr ,nnncX would Immediately have IA sharp rise.
The foreign houses would thereupon make sterling
loans In reap the benefit OF the high interest rates;
,hnt ia they would let the obligat ions to them of
Neu york drawers of bills OF exchange stand
ioans Instead OF ur!ng the forwarding OF gold to
"},rri1 me sale OF American stocks and bonds In
Eurone he effected they would make exchanges" /"
I;ui. tronld be drawn against them In lieu OF sending
polJ Az has been stated. IL IL expected that J.
Ilerpont Morgan who Is on his way 10 Europe Will
while there place many millions OF securities. This
{. ,ho s,a son of the year when gold ordinarily fows
.,,nccs The outgo will be much smaller than usual.
The Treasury gold reserve is over sl2s.Oo0.00O.