Evening star. [volume] (Washington, D.C.) 1854-1972, 1896-07-13
THE GOLD BALANCE
Effect Of Its Decline Below the
100000 Mark.
EFFICIENCY OF THE LAST BOND issue
That is Now Being Discussed by
Treasury Officials.
FORM AND DENOMINATION

The decline Of the gold reserve below
500, ,OOO. 600 is exciting renewed discussion
at the treasury regarding the efficiency
OF the last bond issue. The net reserve has
held its ground very well during the six
weeks since the end Of May, but 1t suf-
feTed heavy losses before that date, and
the end Of six months will see two-thirds of
the gold proceeds Of the bond sale with
drawn from the treasury. The reserve
stood on January 6, when Secretary Car
Isle announced the last bond issue, at
$6l .S31. 726 The proceeds of the bond sale
were $11, 166 2S2, 80 that the reserve would
have stood at $172. .697, 85S II there had been
no losses during the period Of payment for
the bonds or since that time. The actual
losses have been about s73. .OOO, 600 in net
amount. so that only $3s, 900. 600 of the pro-
ceeds of the bond sale remain in the treas
ury. The actual losses have been some
What greater. but have been Offset to the
amount or two or three millions by gains
OF gold from miscellaneous sources 1t is
noped at the treasury that these gains will
De considerable during the summer and
autumn as the demand arises for small
notes and silver dollars to move the crops
II mas been found possible at such times to
obtain gold in exchange for currency by
onering favorable terms to the holders Of
paying the express charges on the transfer
OF the gold to the treasury and on the
transfer Of the notes from the treasury to
Inc original holder of gold
No Fear From Gold Certificates,
Inc treasury Is no longer in danger of
the exhaustion Of its gold coin held against
outstanding gold certificates The amount
OF coin officially reported at the close of
last week was s1O9, ,912, 1874, and the amount
of gold bullion was $32. .563, 1873. The pur-
pose Of the recent reduction in the charge
Ior goid bars from one-eighth to one-tenth
OF one per cent was to preserve this low
ratlO OF uncolned bullion to coin held and
10 obViate the necessity for the coinage of
the bullion. A high charge for bars might
operate as restriction upon gold exports
II the charges were not high enough to
throw the demand for gold upon the coin
ihere Is no object in retaining bullion in
l.e treasury. except for the convenience
OF exporters, while 1t is very important to
keep the amount of coin equal to that of
the outstanding gold certificates and to all
other legitimate demands Coin is treated
~ many european countries as bullion and
sues ~ tne melting pot, SO that Its ship
ment back and forth may entail the re-
peated- coinage of the same gold by the
United States mint. 1t is proposed to coin
up the bullion as rapidly as convenience.
permits. but in the meantime IT will he sold
~ eoio exporters at the reduced rate In The
ahsence of lightweight coins The treas
ufy. IN pursuance of the policy of throwing
obstacles In the way of gold exports navs
tne highest coins which are within the
lesai unit or tolerance when it has them
On mana, but most Of those received for the
ldse nond issue have already been worked
OH and those remaining are comma ra tiye,v
ne" Ihe matter of reducing the charge
was the subject Of a conference between
ASSISTANT Secretary Curtis and Treasurer
J~oraan ~ at the New York subtreasury. Mr.
Jordan desired discretion to fix the charge
according to the situation of the moment
anu the terms offered by particular expor-
teis This was felt to be contrary to tho
policy OF the treasury, but reduction of
the rate was yielded to his reconmenda
tons.
Classification of the Recent Bond
Issues.
One Of the interesting subjects of study at
the treasury regarding the recent bond is
sues is their classification into registered
and coupon bonds and into different denomi
nations The law permits the transforma-
ton OF coupon bonds into registered bonds.
but does not permit change from regis
tered back to coupon. The result of this
condition Is that bonds are usually taken in
the coupon form when first issued, because
they can thus be more easily transferred
from the syndtcates, which first take them
to the brokers, and from the brokers to
permanent investors. Permanent investors
generally prefer to have their bonds regis
tered. because they are not then put to
such serious risks of loss. A new issue of
bonds remains for some time chiefly in the
coupon form, but gradually changes to the
registered form. until the latter includes
much the largest proportion Of the entire
issue. The age of a bond issue might be
determined by skillful student from the
proportion of bonds which are registered.
The old per cent bonds, mostly issued In
1877, are now registered to the amount of
s49O, ,s27 900, out Of 1855, 595, 800 outstanding.
The . per cent bonds issued in 1894 to the
amount of $100.OOOO00 have been registered
to the extent of $58, ,922 $50. The two issues
of new per cents, in 1895 and 1896, are both
dated February l, 1895, and are not sep
arated In the treasury accounts. The dis
tribution' of the entire sum of $162, ,315, 400
on July was $S9, 900 500 in registered bonds.
and $73224,9 800 in coupon bonds The latest
hgures available for the issue of 1895. be-
fore 1t was combined with that of 1896. are
those Of January 81 last. The registered
bonds were then $36, 273, ,OOO and the coupon
bonds were $26.042, 400.
Denomination Classification.
Coupon bonds are not issued above the de-
nomination of 81 ,OOO but ten thousand is q
favorite denomination for registered bonds.
The issue of 1895. as distributed on July /,
showed 1O.52O bonds outstanding in coupon
form of the denomination of ZOO, while
the number of $500 was only 1885: of s1Oo.
800, and of $50. 1885, The registered bonds
included nearly many Of the denomina-
ton of 81 600 as $4,000, but the amount was
much smaller. The number of $4,000 was
1882; of $1,000, 474; of 81, 600 6,77S; of $500
80: OF 500, 1865. and of $50, 21S. The issue
OF 1894 includes 5,274 registered bonds of
$4,000 each. 5,S17 Of 81 1000, 2.9S7 of 500,
and lS3 of $50. The coupon bonds include
0f ,x>l, ~