New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1897-10-10
SHIPPING GOLD.
WHY COIN is MOVED ABOUT THE
WORLD AND HOW 1T Is DONE.

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with pride and satisfaction is the receipt Of
larger quantities Of gold from abroad. while
the banker and the merchant may understand
perfectly well why the importation Of gold Is
an evidence OF prosperity, the layman Is less
positive on the subject and consequently the
questions are frequently asked: What bearing
has the importation OF gold on the financial
condition Of the country" why Is gold sent
TO US at ALL and why would it not be well
to send slip OF paper ahowing that a certain
amount Of gold has been placed to the credit
of the firm to whom it is due as to send the
actual metal?"
The men who receive the gold say that gold
comes to this country a means OF final settle
ment. "Our European correspondents pay with
securities and bills OF exchange" said banker.
"as long they do so, and when there
ceases to be any profit in that method they
send the gold" All agree that the influx OF
gold is an unmistakahe sign Of activity in
business We have the conditions
right In our own country" said Maurice l..
NJ lheman, Deputy Assistant United States
Treasurer when the cotton is being harvested
in the South and the grain In the West. New
York sends to the banks in those regions ad-
vances in the shape Of bankers drafts. This
commercial paper Is used again by them and
there is no need for sending actual money.
But when the crops are unusually large and II
requires extraordinary sums OF money to pay
for harvesting then the local banks are COM
PEELED to ask for money instead of paper. They
need 1t for their customers, who can pay help
only with money They are prevented from
making further inroads on their own supply be-
cause OF the law which compels them to have
certain amount Of cash always on deposit as re-
serve. That Is the case at present, and large
sums Of actual money are being sent to New
Orleans and the West to help the little banks
along
1.-The at the bottom OF the
gold shipments from abroad In times when
there Is no demand for money. when business
Is slack. bankers have much gold that they
prefer to receive paper; but with large crops to
move. increasing pay rolls due to Increase in
manufacturing. with increased freight transac-
lions and the additional business which follows
In the wake OF a manufacturing revival. the
supply OF money becomes low. and the conse-
Quence Is that ask our European corre-
spondents to send us gold instead OF paper"
But gold Is not shipped like ordinary mer-
chandIse, and the mode OF packing is little
known outside the banking establishments to
which It Is consigned. The coin gold from
Great Britain comes in lots OF five hundred
ounces. These lots are usually packed in five
bags CT one hundred ounces each. andNhe bags
are placed In box. which Is tightly nailed and
strapped. 1t frequently happens that a lot Is
slightly over weight. and In such cases coin
Is clipped TO make the weight exact.
Bar gold Is also shipped in boxes. each box
containing i've hundred ounces. The bars are
kept from chatting by being packed between
layers OF sawdust
American gold coin which has lost less than
onc-half per cent by wear IL received for its
face value. but all pieces which are light as
much % one-half per cent received by
weight only.
The Assay ONCE advances % per cent on
oil the gold which H. left there. and when the
actual value has been determined settles by
check on the Sub-Tressury. American gold
CON- like the French and the German. is nine
tcnths nnc. British coin !s elevcn-twclfths fine.
and bars OF various grades Because or
the variation IN quality all settlements are made
on the basis OF fine gold"
There are tricks In the gold business" said
another banker. (which are not known to the
rest u the business world. For instance" the
Ilrhtuclght coin dodge. \ man buys American
god In Europe FOR shipment to this country
He buys it by weight and it here for it, face
value II tn, coins have been slightly worn
I'm circulation but not down to the One-haf pei
cent limit the shipper makes the difference
GOA when shipped 10 Europe from the United
states is usually packed In kegs or boxes. each
containing five bags Of $l0pW each. and when
ono secs n large Tray in the Wall Street district,
attended by scv raj men. but loaded only with
one or two small kegs. he may know that th''e
Is an actual NOV encnt in gold.
UrU TNpERTENfE