The indicator., 1897-11-06
SHIPPING GOLD.
How the Coin Is Moved About
the World.
The Mode of Packing Is Little Known
Outside of ban mixing Houses
There Are Tricks in
the business.


The men who receive the gold say
that gold comes to this country as a
means of final settlement. "Our Eu-
ropeau CORES spoudeuts pay with secur-
tiles and bills of exchange" said a
banker, "as long as they can do so, and
when there ceases to te any profit in
that method they send US the gold"
AL agree that the influx OF gold is an
unmistukab!e sign OF activity ia bus!-
ness. We have the same conditions
right ia our own country said Maurice
L. MuAlemau. deputy assistant Uuited
States treasurer. when the cotton is
being harvested in the south aud the
grain in the west, New York sends to
the banks in those regions advances IN
the shape Of bankers drafts, This com
mercal paper is used again by them
and there is no need for sending actual
money. But when the crops are un-
usually large and it requires eNtraor-
dinary sums Of money TO pay for har-
vesting. then the local banks are com
PEELED to ask for money instead of pa
per. They need it Tor their customer,
who can pay help only with money. They
are prevented from making further in
roads on their own supply because of
the law which compels them to have "a
certain amount Of cash always on de
post as reserve. 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.
The same causes are at the bottom
OF the gold shipments from abroad. In
times when there is no demand for
money, when business is slack, bankers
have so much gold that they prefer to
receive paper; but with large crops to
move, increasing pay rolls due to in
crease in manufacturing, with in
creased freight transactions and the
additional business which follows in
the wake Of a manufacturing revival,
the supply of money becomes low, and
the consequence is that we ask our Eu-
ropean CORE spondents to send US gold
instead OF paper"
But gold is not shipped like ordinary
merchandise. and the mode of packing
is little known outside the banking es-
tabli>hment to which it is consigned.
The coin gold from Great Britain
comes in lots Of 500 ounces These lots
are usually packed in five bags of 100
ounces each, and the bags are placed
in box. which is tightly nailed and
strapped. 1t frequently happens that
lot is slightly over weight, and in
such cases n coin is clipped to make
the weight exact.
Bar gold is also shipped in boxes,
each box containing 500 ounces. The
bars are kept from chafing by being
packed between layers Of sawdust.
American gold coin which has lost
less than one-half per cent. by wear is
received for its face value. but all pieces
which are light as much as oua-half
per cent. are received by weight only.
The assay Office advances 90 per cent.
on all the gold which is left there, and
when the actual value has been deter
mined settles by check on the subtreas-
ury. American gold coin. like the
French and the German. is niue-tenths
fine. British coin is eleveu-twclfths fine,
and bars are of various grades. Be
cause Of the variation in quality all set
Elements are made on the basis of fine
gold"
There are tricks in the gold busi-
ness" said another banker. (which are
not known to the rest of the business
world. For instance, the lightweight
coin dodge. y man buys American
gold in Europe for shipment to this
country. He buys it by weight and
uses it here for its face value. If the
coins have been slightly worn in cir
culation. but not down to the one-half
per cent. limit, the shipper makes the
difference"
Gold when shipped to Europe from
the United States is usually packed in
kegs or boxes, each containing five bags
Of $4,000 each, and when one sees a
large dray in the Wall street district,
attended by several men, but loaded
only with one or two small kegs, he may
know that there is an actual movement
in gold.-N.. Y. Tribune.