The sun. [volume] (New York [N.Y.]) 1833-1916, 1898-03-13
FRANCES GOLD N
ron AN HOUR ON FRIDAY HER
BANK MOULD SELL NO GOLD.

Lake the Imperial Bank or Germany, It ne
serves the EliEht 20 Redocu, Is Metre In
Either Metal ana II shuts DeWn the
Gntes when n Drain OF Goid Arises.
A great deal Of interest was taken in the 1nan.
oial district yesterday in tho attitude OF the
Bank of Franco regarding the movement OF
gold now in progress to the United States. The
advicos received by the foreign banking houses
indicated that for a brief period-perhaps an
hour-the Bank of France on Friday refused alb
solutely either to redeem its notes in gold or to
sell gold at a premium. Later, however, the soil
ing Of gold at n premium was resumed. This pre-.
MUM rulod on Friday rs high as 7.l0 Of l per
por cont, Rs against 40 OF l per cent, which
was about the premium when tho movement OF
gold TO this country began. Private cable od-
vices received in this city yesterday indicated
that there had been a reduction In tho pro-
MUM. It was thought that a refusal by the
bank for n little while on Friday to let go
any OF its gold might have been due to the
desire OF the bank authorities to find just how
the situation stood before fixing tho premium.
The Bank OF France. which is controlled by
the Government. is adverse to losing any Of its
gold. From the military point of view. which Is
tho supreme French point Of view, the authori-
ties desire to retain nl the gold they can. Tho
same view Is held by tho German Government,
scntod und gold is asked for which is obviously
%GSrs"iS to ,' he G ref9ssd 'a and ps sREivsr Is o Il S,np a.
though the applicant, Is generally told that II no
bunker s said Gn yes say fosu Of II he 3 p sIimntion: a foreign
France and Germany are often referred to
rs gold STANDARD countries. They, are really.
however, on II bimctallic basis, for they redeem
their notes In gold or in silver, rs they please.
and are very sure, to redeem them in silver e it
United States ana England are the only real
gold standard countries. Both redeem their
Deputy Assistant United stntes Treasurer NJ.
i. Muhlcman OF tho New York Sub-Treasury,
I %nthSoTr OF The Monetary Systems Of the
titude of the Bank of France:
Tho charter governing the Bank of France
does not prescribe any measures as to the coin
reserve to DO held against the note Issue, but it
must redeem It's notes in specie. Tho bank,
however. prrsues nm exceedingly careful policy
under the direction of its presiding officers. who
are appointed by the French Govornnent; rs
francs. shy S74O.O 900. 900. against which it held
1882. COO. 900 francs in gold and 1.212. DOC. 900
afs@Ss S &c S ,ooo. GOO oh francs G"sk Of hn notes ssG mot scyo onsG
by GEin; ,..r., 81, so,o.,, =, ro,a = =,
silver 5'franc pieces without discrimination
and they AFRO on ordinary occasions redeemed
either in gold or in 5;iranc pieces, at tho
reserves the right to pay in either gold OF silver.
and when extraordinary conditions arise the
to the excessive withdrawal Of gold. instSSd Of
using The indirect means of the discount rate. rs
docs the Bank OF England, 1t employs the more
direct ono of imposing n premium on gold when
1t is desired for export. This premium,
ordidariiy 40 OF l per cent. Tor 1 mills. has
been increased recently to 5.lO. 6.1O ami no
In order to avoid the burden OF furnishing tho
gold REQUIRED for the United States. which the
Bnnk Of England last week shifted upon Paris.
Tho result was that at such rates it was
cheaper TO get gold In London than in Paris. md
of course international houses having tho IA
Cilities provide themselves with the requisite
gold where it can at the moment be obtained
cheapest.
"Whon the demand is considered excessive in
spite OF tho premium tho bnnk may refuse to
redeem its notes in gold altogether. This Is.
however. so drastic n measure and so Liable TO
THE process OF imposing n premium is anala-
gold bars: exporters almost always prefer bars
TO coin. and tho same desire TO place an obstacle
in the way OF the exports OF gold caused the I'M
position of the premium ny the Treasury in
1892. and the subsequent refusal altogether to
furnish bars for export.
These premiums are Immediately reflected
In the exchange rates. and of course the com.
mercial public finally pays them on its bills OF
exchange. The premium of $40 per cent. In
Paris, reported by Press despatchcs. appears to-
day to have been practically cGualizing the
French with tho British rate. SO that both capt.
tails are furnishing gold to-day
Two additional engagements Of gold abroad
for import wcrc announced in Wall street yes.
terlay. Ladenhurg. ThRlmRnn & Co. engaged
$500. 900. and the National City Bank 5000. 900.
making the grand total of the movement since
the engagements began on Feb. 25 SIG. TOp, 900.