The sun., 1897-04-27
EXPORT OF GOLD RESUMED
OTHER SHIPMENTS TO FOLLOW MUL-
LER, sOHALL & CO.'S.

Dissolution or the Bankers' Agreement Not 70
ship Until Demand sterling nilis Reached
sA.es s-d-yhipmcnts play ne 90, 900, 900
ror the week-The Premium on Goia Abroad
Muller. Schall & Co. withdrew yesterday from
the United States Assay Oflco S977,OO0 In gold
bars for shipment to Bremen by tho steamship
Travo, which sails to-day. An immediate effect
OF tho withdrawal was the dissolution OF tho
agreement recently entered into by the largo
foreign banking houses not 10 export gold until
tho price Of demand sterling bills reached 1884,
The manner of dissolution Of tho agreement was
scarcely surprise to those familiar with tho
history Of similar agreements.
Tho order on which tho gold was shipped
reached this city last Friday. 1t came first TO
Heidolbach, Ickelheimer & CO., who declined to
execute 1t, giving tho agreement as tholr rea-
son, but Muller, Sohall & Co., to whom tho
order next came, made arrangements on Satur-
day TO ship tho gold, placing as their cabled In
structions directed. bills at the highest ratcs
obtainable. Their correspondents abroad will
stand any possible loss on the transaction and
pay commission In addition. The bills were
sold chiefly to Lazard Freres, another finn In
the agreement, who were much surprised when
they discovered that they had been aiding In
the arrangements for o shipment OF gold.
Members Of foreign banking houses who were
parties TO the agreement yesterday expressed
surprise at the action of Muller. Schall & Co..
and went so far as to call It breach Of faith
C, Muller OF that firm said In explanation:
"When we had an order to buy and ship gold
we could no more refuse to execute 1t than we
could refuse to execute an order for 100 shares
of stock"
Mr.. Muller said that his firm had been in per-
feet accord with the other foreign exchange
houses, who had approached them when demand
sterling reached $4.sst, and that It had had no
intention Of exporting gold ION arbitrage or for
1'84th or 1-32d Of per cent" He said that he
had no knowledge Of the ultimate destination Of
the gold and that report that was 10 60 to Vi
emma was guesswork. The gold bars which were
taken from tho Assay ofice by the Arm
were secured by turning in greenbacks Of
largo denomination ut the Sub-Treasury,
and getting an order for gold coin.
This order was then taken to the Assay Ohice
and exchanged for the bars payment Of a
commission OF 1.10th Of per cent, which covers
SRsf Shsif:t
the last previous shipments OF gold bars were
made TO Europe, Inquiry was made by the
should be charged. and they were advised by
the Washington authorities to charge the old
rate, though 1t is not known whether this rate
will continue on further exports which are i'm
pending.
ERieh s hHss % pH
bars, rather than take coin. not only because of
the less chance OF abrasion in transit. but be-
cause Of tho probability Of their obtaining at
the Sub-Treasury coin already slightly worn in
circulation. Bars can be figured on In exchange
calculations with much more eXnctitude.
Following tho news of Muller, Schall & Co.'S
action other houses have taken steps looking
| toward exports of gold. Kidder, Peabody & Co.
| OF Boston. il was announced, would on Thurs
| day ship $50O.Oo0 in gold to Hamburg by the
! steamship NorInannia, sailing from this port,
| the arrangements being made by their LOCAL cor
| respondents, Barring Magoun Co. LaZard
Fr6res have made inquiries to gold bars at the
| Assay Office and may ship.
On the news OF the dssolvng of the agreement
between tho foreign banking houses, the sterling
| exchange market weakened yesterday, with
! actual closing rates for demand sterling, S7A
| qSI. SO. 1t was reported that including amounts
| already announced, tho gold exports for the
| week would probably aggregate g, 600 900:
The existing premium for gold abroad 10 be-
licved TO be an important factor In causing gold
| shipments at the present time. when there is q
| decided trade balance In favor Of this country.
In London bars selling at 77s. li9d. to 7ss.
an ounce, which Is virtually premium Of Id,
| as the normal selling rate OF the Bank Of Eng
! land Is 77s. lloyd.
nounce that they will ship on the steamship
Normandie sailing from New York next Thurs
| day. $500, 600 In gold This Is the first consign
ment OF gold from these shores this season. This
| year tho Inauguration Of the export movement
| seems hased solely on business lines, with an
| entire absence Of the disquieting uncertainties
| OF last year.