The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1897-05-02

There is every year transfer Of gold
back and forth between the United States
ard Europe. as the balances are shifted.
IT attracts little attention usually. and has
nothing in common with that hesty with
drawal of gold from circulation during the
prevalence of fear that silver was to be
forced in place of IT, This year, besides
the usual demand. 1t has been called for
by Austria and Japan in their prepare
lions to go TO gold basis. The whole
amount likely to be withdrawn will not
cause a ripple Of disturbance. 1t may
amount TO $1,000. oe0, yet 1t will leave in
the country a considerable quantity. The
reserve In the treasury is not far short OF
s15s. COO. go. the New York sub-treasury has
SIS Ooo.ooo. and the associated banks of that
city have in their vaults about So 900
more.
This traffic in gold is mere matter OF
business, and the expectation of 1t Is not
due to the selling OF American securities
by European holders on account OF pam
icky feeling The export has been caicu-
lated upon for some time and prices have
been an indication that the expectation
had been discounted. American gold
coins, which, by the way, are always
called eagles in England. in order to dis
tinguish them from silver dollars, are not
melted when they go into the vaults of
the Bank of England but return to this
country sometimes after an absence Of
many years. For some reason, which does
not seem to be attributable to any other
cause than custom, United States gold
coins do not circulate abroad, and for
that reason suffer less from abrasion than
European coins, which are to great ex-
tent internationally exchangeable. It is
very probable. however. that all gold.
whether in bullion or in coin, shipped to
Austria and Japan will be melted and
recoined into the money of those nations.
There has been no such export of gold
as that during the last few days since
those notable and alarming Withdrawals
at the rate sometimes Of two million dol
lars in one shipment such as that which
took place In July. 1896, and which COM
PEELED the government to resort to bond
issue in order to protect the treasury gold
reserve.
There are some very notable figures in
connection with this subject of the export
and import Of gold. 1t may not be more
than coincidence. since the commercial
laws which govern money exchanges are
not readily discernible, but il is a fact
that during fhe four wars From, 1909 IN
the end of 1895. which covers the period of
Democratic ascendency in the nation, the
net exports of gold amounted to $74,254 4s6.
while during the previous four years,
covering the period of Republican rule,
the total net exports were only SO, $40 s26.
1t will be remembered that 1891 was the
year of the great Barring failure, with
which this country had nothing to do but
its effect was felt in the calling In by
European holders of the money they had
put into American securities, In order to
protect their holdings at home. That year
the exports amounted to 81. 0es, 1872, so that,
had 1t not been for the Barring failure, the
net exports would have been merely trif-
ling during the entire four years. In fact,
In the previous year, 1890. there was an
excess of imports over exports amounting
to 81, go. 49,
These figures would. il must be admit
ted, not be absolute proof of prosperity,
because In 1896, when it was notorious that
the Withdrawals of gold were enormous,
the re-establishment of a feeling of Sc
curity, the sale of bonds, and the election
or Mckinley resulted in such reaction
that before the close of the year the tide
had turned and the net imports over ex-
ports amounted to s., 500. &c., The COMPARE
son is exceedingly significant. therefore.
as showing whether or not confidence has
any bearing upon the condition of the
money market.
The traffic in gold is conducted on a very
narrow margin. the profit sometimes be-
ing no more than one sixty-fourth of per
cent. The commission paid to a london
house last week for obtaining 81 ooo 600
worth OF gold was one-sIxteenth of ner
cent. which is equal to sS25, and this II had
to divide with the New York house. Ac-
cording TO the market reports the Bank of
Engiands present charge for pure gold
bars IS IS shillings an ounce. the par for
bars being q shillings. The banks price
for American gold dollars is rs shillings
ard pence per ounce. which is about
eeats over par. AS there are 80 600 and
some odd ounces OF gold in a million dol
lars, the premium at the Bank of Eng
lands price Is something more than 81 coo.
i must seem odd to those who pay little
attention to the subject TO find the Bank
OF England paying us profit for our
money. What should receive more
thoughtful attention. however. is the fact
that Great Britain Is protected by the
Bank OF England from excessive exports.
while the treasury OF this country is open
70 raid at any time. The English gov